Analysis of Profitability Ratios
Quarterly Data
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Paying user area
Try for free
Hilton Worldwide Holdings Inc. pages available for free this week:
- Income Statement
- Balance Sheet: Assets
- Cash Flow Statement
- Common-Size Balance Sheet: Assets
- Analysis of Short-term (Operating) Activity Ratios
- Analysis of Long-term (Investment) Activity Ratios
- Common Stock Valuation Ratios
- Present Value of Free Cash Flow to Equity (FCFE)
- Current Ratio since 2013
- Aggregate Accruals
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to Hilton Worldwide Holdings Inc. for $22.49.
This is a one-time payment. There is no automatic renewal.
We accept:
Profitability Ratios (Summary)
Hilton Worldwide Holdings Inc., profitability ratios (quarterly data)
Based on: 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
- Operating Profit Margin
- The operating profit margin exhibited notable volatility at the onset, declining sharply from 15.41% in the first quarter of 2020 to negative territory by the end of 2020, reaching -9.71% in December 2020. This downturn correlates with considerable operational challenges during this period. However, starting in early 2021, the margin showed a strong and consistent recovery, turning positive by the second quarter and peaking at 23.87% in December 2022. In 2023, the operating profit margin stabilized around the low to mid-20% range, with a slight declining trend observable towards the end of 2023 and into the first half of 2024, settling near 21.39% by mid-2024.
- Net Profit Margin
- Similar to operating profit margin, net profit margin faced significant deterioration in 2020, declining from 8.08% in the first quarter to a low of -25.79% in March 2021. This reflects the impact of extraordinary expenses or diminished revenues during this time frame. Recovery commenced in the second quarter of 2021, with margins improving steadily and becoming positive by the third quarter. From late 2021 through 2023, the net profit margin further strengthened, achieving levels above 13% before showing a slight decrease to approximately 11.2% by mid-2024. This suggests an overall rebound with some recent softness indicating potential margin pressure or changing market conditions.
- Return on Assets (ROA)
- The return on assets followed a comparable trend to profit margins. Early 2020 values were positive but declined sharply into negative figures during the mid to late 2020 period, reaching a low of -5.26% in the first quarter of 2021. Post this trough, ROA improved consistently, turning positive by mid-2021 and exhibiting upward momentum through 2022 and 2023. Peak returns were observed toward the end of 2023 at 8.7%. Into the first half of 2024, ROA slightly tapered but remained healthy above 7.5%, indicating effective asset utilization and improved profitability following the recovery from prior downturns.
- Overall Observations
- The data illustrates a pronounced impact on profitability metrics during 2020 and early 2021, with sharp declines reflecting operational and economic challenges. Subsequent recovery trends across operating profit margin, net profit margin, and return on assets indicate significant improvement and operational stabilization. While margins reached strong levels through 2022 and 2023, recent quarters show slight declines or stabilization below peak values, suggesting the possibility of emerging pressures or a normalization phase after rapid growth. The absence of return on equity data limits a complete assessment of shareholder returns. However, the available data reveals resilience and a positive trajectory post-crisis periods.
Return on Sales
Return on Investment
Operating Profit Margin
Hilton Worldwide Holdings Inc., operating profit margin calculation (quarterly data)
| Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||
| Operating income (loss) | ||||||||||||||||||||||||
| Revenues | ||||||||||||||||||||||||
| Profitability Ratio | ||||||||||||||||||||||||
| Operating profit margin1 | ||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||
| Operating Profit Margin, Competitors2 | ||||||||||||||||||||||||
| Airbnb Inc. | ||||||||||||||||||||||||
| Booking Holdings Inc. | ||||||||||||||||||||||||
| Chipotle Mexican Grill Inc. | ||||||||||||||||||||||||
| DoorDash, Inc. | ||||||||||||||||||||||||
| McDonald’s Corp. | ||||||||||||||||||||||||
| Starbucks Corp. | ||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q2 2024 Calculation
Operating profit margin = 100
× (Operating income (loss)Q2 2024
+ Operating income (loss)Q1 2024
+ Operating income (loss)Q4 2023
+ Operating income (loss)Q3 2023)
÷ (RevenuesQ2 2024
+ RevenuesQ1 2024
+ RevenuesQ4 2023
+ RevenuesQ3 2023)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
The financial data reveals several notable trends over the analyzed quarters, particularly in operating income, revenues, and operating profit margin.
- Operating Income (Loss)
- The operating income exhibits significant volatility in early periods, with losses recorded in the second and fourth quarters of 2020. However, starting from the second quarter of 2021, there is a clear and consistent improvement, with operating income rising substantially and remaining positive through subsequent quarters. The peak operating income occurs in the third quarter of 2022, followed by a slight decline and stabilization at elevated levels compared to the early periods. This upward trajectory suggests recovery and strengthening operational performance after initial setbacks.
- Revenues
- Revenues demonstrate a considerable dip in the middle quarters of 2020, followed by a steady and sustained increase thereafter. The upward trend continues robustly through 2021 and 2022, with revenues surpassing pre-2020 levels by a significant margin. While some fluctuations exist in later quarters, revenues remain elevated, reaching their highest points in mid-2024. This pattern indicates strong growth and improved market activity over the period.
- Operating Profit Margin
- The operating profit margin shows pronounced fluctuation early on, including negative margins during the latter part of 2020 and the first quarter of 2021. Starting mid-2021, there is a marked recovery, with margins increasing steadily and peaking towards the end of 2022. Although there is a gradual decline in the margin from late 2022 through mid-2024, the levels remain significantly higher than the early period lows. This trend reflects enhanced operational efficiency and profitability after a period of challenges.
Overall, the data points to an initial period of financial stress followed by strong recovery and growth in both revenue generation and profitability. The company demonstrates resilience and improved operational management, resulting in more stable and positive financial performance in the most recent quarters.
Net Profit Margin
Hilton Worldwide Holdings Inc., net profit margin calculation (quarterly data)
| Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||
| Net income (loss) attributable to Hilton stockholders | ||||||||||||||||||||||||
| Revenues | ||||||||||||||||||||||||
| Profitability Ratio | ||||||||||||||||||||||||
| Net profit margin1 | ||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||
| Net Profit Margin, Competitors2 | ||||||||||||||||||||||||
| Airbnb Inc. | ||||||||||||||||||||||||
| Booking Holdings Inc. | ||||||||||||||||||||||||
| Chipotle Mexican Grill Inc. | ||||||||||||||||||||||||
| DoorDash, Inc. | ||||||||||||||||||||||||
| McDonald’s Corp. | ||||||||||||||||||||||||
| Starbucks Corp. | ||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q2 2024 Calculation
Net profit margin = 100
× (Net income (loss) attributable to Hilton stockholdersQ2 2024
+ Net income (loss) attributable to Hilton stockholdersQ1 2024
+ Net income (loss) attributable to Hilton stockholdersQ4 2023
+ Net income (loss) attributable to Hilton stockholdersQ3 2023)
÷ (RevenuesQ2 2024
+ RevenuesQ1 2024
+ RevenuesQ4 2023
+ RevenuesQ3 2023)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
- Revenue Trends
- Revenues exhibited significant variability during the analyzed period, beginning at $1,920 million in Q1 2020. A notable decline occurred in Q2 2020 to $564 million, reflecting a steep contraction likely associated with external factors. Subsequent quarters showed gradual recovery, with revenue reaching $1,836 million by Q4 2021. From 2022 onward, revenues experienced consistent growth, peaking at $2,951 million in Q2 2024. This upward trajectory indicates a strong rebound and steady expansion in business activity.
- Net Income (Loss) Trends
- Net income attributable to stockholders displayed pronounced fluctuations. The earliest quarters in 2020 revealed considerable losses, particularly a negative value of -$430 million in Q2 2020. From mid-2021, the company returned to profitability, achieving $241 million in Q3 2021. This positive momentum continued with varying degrees, with the highest net income recorded at $421 million in Q2 2024. Despite some quarters showing reduced net income compared to prior peaks, the overall trend reflects recovery and strengthening profitability.
- Net Profit Margin Trends
- The net profit margin mirrored the patterns seen in revenues and net income. Starting at a robust 8.08% in Q1 2020, margins rapidly declined into negative territory by Q3 and Q4 2020 reaching as low as -25.79% in Q1 2021, indicating significant operational challenges. Recovery began in mid-2021 with a return to positive margins of 0.81% and improved steadily thereafter. By 2022 and onward, margins stabilized between approximately 11% and 14%. The most recent quarters in 2024 show net profit margins consistently above 11%, signaling improved cost management and operational efficiency.
- Overall Analysis
- The company's performance over the analyzed periods was initially impacted by adverse conditions resulting in steep revenue declines and net losses. From mid-2021 onward, there is clear evidence of sustained recovery, with revenues increasing significantly and profitability metrics improving. The stabilization of net profit margins above 11% in recent quarters supports the conclusion that the company has adapted to evolving market conditions and regained financial stability. Growth in both top-line and bottom-line figures suggests positive momentum moving forward.
Return on Equity (ROE)
Hilton Worldwide Holdings Inc., ROE calculation (quarterly data)
| Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||
| Net income (loss) attributable to Hilton stockholders | ||||||||||||||||||||||||
| Total Hilton stockholders’ equity (deficit) | ||||||||||||||||||||||||
| Profitability Ratio | ||||||||||||||||||||||||
| ROE1 | ||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||
| ROE, Competitors2 | ||||||||||||||||||||||||
| Airbnb Inc. | ||||||||||||||||||||||||
| Booking Holdings Inc. | ||||||||||||||||||||||||
| Chipotle Mexican Grill Inc. | ||||||||||||||||||||||||
| DoorDash, Inc. | ||||||||||||||||||||||||
| McDonald’s Corp. | ||||||||||||||||||||||||
| Starbucks Corp. | ||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q2 2024 Calculation
ROE = 100
× (Net income (loss) attributable to Hilton stockholdersQ2 2024
+ Net income (loss) attributable to Hilton stockholdersQ1 2024
+ Net income (loss) attributable to Hilton stockholdersQ4 2023
+ Net income (loss) attributable to Hilton stockholdersQ3 2023)
÷ Total Hilton stockholders’ equity (deficit)
= 100 × ( + + + )
÷ =
2 Click competitor name to see calculations.
The financial performance exhibits a notable recovery trend in net income attributable to Hilton stockholders after a significant downturn in early 2020. Initially, the net income experienced a sharp decline, reaching a negative value of -430 million US dollars in the second quarter of 2020, which can be associated with adverse market conditions during that period. Following this, the company gradually moved back to profitability, with net income consistently positive from the second quarter of 2021 onward. The figures show an overall upward trend with fluctuations, peaking at 421 million US dollars in the first quarter of 2024. Despite some quarter-to-quarter variability, the positive trajectory signals improving operational performance and recovery from the earlier losses.
In contrast, total Hilton stockholders’ equity displayed a continuous decline over the periods under review. Starting with a deficit of -914 million US dollars in the first quarter of 2020, the equity position deteriorated further throughout the quarters, reaching a deficit of -3,116 million US dollars by the second quarter of 2024. This persistent negative equity suggests ongoing financial challenges, potentially linked to accumulated losses or other liabilities surpassing assets. The escalation of the deficit over time indicates that while profitability has improved recently, it has not yet translated into a stronger equity base.
Return on equity (ROE) data is unavailable, which limits the ability to assess the efficiency of equity financing in generating profits. However, given the negative and worsening equity figures alongside improving net income, calculating ROE might yield distorted or non-meaningful values.
Overall, the financial data reflects a company recovering its profitability after a severe downturn but still grappling with a weakening equity position. The improving net income trend is a positive indicator, yet the persistent and increasing equity deficit points to underlying issues in capital structure or accumulated financial obligations that management needs to address.
Return on Assets (ROA)
Hilton Worldwide Holdings Inc., ROA calculation (quarterly data)
| Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||
| Net income (loss) attributable to Hilton stockholders | ||||||||||||||||||||||||
| Total assets | ||||||||||||||||||||||||
| Profitability Ratio | ||||||||||||||||||||||||
| ROA1 | ||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||
| ROA, Competitors2 | ||||||||||||||||||||||||
| Airbnb Inc. | ||||||||||||||||||||||||
| Booking Holdings Inc. | ||||||||||||||||||||||||
| Chipotle Mexican Grill Inc. | ||||||||||||||||||||||||
| DoorDash, Inc. | ||||||||||||||||||||||||
| McDonald’s Corp. | ||||||||||||||||||||||||
| Starbucks Corp. | ||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q2 2024 Calculation
ROA = 100
× (Net income (loss) attributable to Hilton stockholdersQ2 2024
+ Net income (loss) attributable to Hilton stockholdersQ1 2024
+ Net income (loss) attributable to Hilton stockholdersQ4 2023
+ Net income (loss) attributable to Hilton stockholdersQ3 2023)
÷ Total assets
= 100 × ( + + + )
÷ =
2 Click competitor name to see calculations.
- Net Income (Loss) Attributable to Hilton Stockholders
- The net income attributable to Hilton stockholders exhibited notable volatility from March 2020 to June 2024. Initially, the company recorded a modest profit in March 2020, followed by significant losses during the middle and latter parts of 2020, reflecting a challenging financial period. Starting in the first quarter of 2021, net income showed a recovery trend, transitioning into consistent profitability. The net income continued to increase with some fluctuations, reaching peak values during mid-2023 and remaining strong into 2024. This pattern indicates a recovery phase post-2020 downturn with improved profitability in subsequent quarters.
- Total Assets
- Total assets showed minor fluctuations but remained relatively stable throughout the examined period, generally fluctuating between approximately $15.2 billion and $17.1 billion. The highest asset base was observed around mid-2020, likely reflecting adjustments to the asset portfolio during that period. Afterward, total assets slightly decreased and then stabilized around the $15.2 to $15.9 billion range, with no significant upward or downward trend, suggesting a relatively steady asset base through the recovery stages.
- Return on Assets (ROA)
- The return on assets experienced significant swings aligned with the net income trend. During early 2020, ROA declined sharply, reaching negative values in the second half of 2020, coinciding with the net losses the company endured. Beginning in early 2021, ROA showed improvement, moving gradually from negative to positive territory. Throughout 2021 and into 2024, ROA increased consistently, peaking at over 8% during the early quarters of 2023. Although a slight dip occurred near the end of 2023, the upward momentum resumed into mid-2024, reflecting enhancements in asset efficiency and profitability.
- Summary
- The overall pattern indicates a strong impact from adverse conditions in 2020, followed by a progressive recovery in financial performance. Net income and ROA, key profitability metrics, both reflect this trajectory with initial losses and negative returns transitioning into steadily improving profits and asset utilization. The total asset base remained fairly stable, suggesting that the organization managed its asset portfolio conservatively amid fluctuations in earnings. The sustained improvement in profitability ratios post-2020 signals effective operational adjustments and resilience in financial performance.