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Hilton Worldwide Holdings Operating Margin %

: 26.70% (As of Jun. 2022)
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Operating Margin % is calculated as Operating Income divided by its Revenue. Hilton Worldwide Holdings's Operating Income for the three months ended in Jun. 2022 was $598 Mil. Hilton Worldwide Holdings's Revenue for the three months ended in Jun. 2022 was $2,240 Mil. Therefore, Hilton Worldwide Holdings's Operating Margin % for the quarter that ended in Jun. 2022 was 26.70%.

The historical rank and industry rank for Hilton Worldwide Holdings's Operating Margin % or its related term are showing as below:

HLT' s Operating Margin % Range Over the Past 10 Years
Min: -2.76   Med: 13.5   Max: 23.05
Current: 23.05


HLT's Operating Margin % is ranked better than
90.3% of 825 companies
in the Travel & Leisure industry
Industry Median: 2.22 vs HLT: 23.05

Hilton Worldwide Holdings's 5-Year Average Operating Margin % Growth Rate was 0.00% per year.

Hilton Worldwide Holdings's Operating Income for the three months ended in Jun. 2022 was $598 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jun. 2022 was $1,739 Mil.

Warning Sign:

Hilton Worldwide Holdings Inc has recorded a loss in operating income at least once over the past 3 years.


Hilton Worldwide Holdings Operating Margin % Historical Data

The historical data trend for Hilton Worldwide Holdings's Operating Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Hilton Worldwide Holdings Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Operating Margin %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 13.92 16.08 16.67 -2.76 17.57

Hilton Worldwide Holdings Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
Operating Margin % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 16.85 25.16 18.08 21.44 26.70

Competitive Comparison

For the Lodging subindustry, Hilton Worldwide Holdings's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Hilton Worldwide Holdings Operating Margin % Distribution

For the Travel & Leisure industry and Consumer Cyclical sector, Hilton Worldwide Holdings's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Hilton Worldwide Holdings's Operating Margin % falls into.



Hilton Worldwide Holdings Operating Margin % Calculation

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

Hilton Worldwide Holdings's Operating Margin % for the fiscal year that ended in Dec. 2021 is calculated as

Operating Margin %=Operating Income (A: Dec. 2021 ) / Revenue (A: Dec. 2021 )
=1017 / 5788
=17.57 %

Hilton Worldwide Holdings's Operating Margin % for the quarter that ended in Jun. 2022 is calculated as

Operating Margin %=Operating Income (Q: Jun. 2022 ) / Revenue (Q: Jun. 2022 )
=598 / 2240
=26.70 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Hilton Worldwide Holdings  (NYSE:HLT) Operating Margin % Explanation

Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.


Be Aware

Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia’s Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


Hilton Worldwide Holdings Operating Margin % Related Terms

Thank you for viewing the detailed overview of Hilton Worldwide Holdings's Operating Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Hilton Worldwide Holdings Business Description

Hilton Worldwide Holdings logo
Traded in Other Exchanges
Address
7930 Jones Branch Drive, Suite 1100, McLean, VA, USA, 22102
Hilton Worldwide Holdings operates 1,074,791 rooms across its 18 brands addressing the midscale through luxury segments as of Dec. 31, 2021. Hampton and Hilton are the two largest brands by total room count at 28% and 21%, respectively, as of Dec. 31, 2021. Recent brands launched over the last few years include Home2, Curio, Canopy, Tru, and Tempo. Managed and franchised represent the vast majority of adjusted EBITDA, predominantly from the Americas regions.
Executives
Fuentes Laura officer: See Remarks 7930 JONES BRANCH DRIVE MCLEAN VA 22102
Carr Chris director 7930 JONES BRANCH DRIVE MCLEAN VA 22102
Rinck Martin officer: See Remarks 7930 JONES BRANCH DRIVE MCLEAN VA 22102
Zhang Ling director C/O HILTON WORLDWIDE HOLDINGS INC. 7930 JONES BRANCH DRIVE MCLEAN VA 22102
Mabus Raymond E director C/O DANA INCORPORATED 3939 TECHNOLOGY DRIVE MAUMEE OH 43537
Healey Melanie director VERIZON COMMUNICATIONS INC. 1095 AVENUE OF THE AMERICAS NEW YORK NY 10036
Witter Jonathan W. officer: See Remarks 1680 CAPITAL ONE DRIVE MCLEAN VA 22102
Begley Charlene T director
Hna Tourism (hk) Group Co., Ltd. 10 percent owner THE CENTER, 99 QUEEN'S ROAD CENTRAL CENTRAL K3 999077
Hna Tourism Group Co., Ltd. 10 percent owner HNA BUILDING NO. 7 GUOXING ROAD HAIKOU F4 570203
Hna Hlt Holdco Ii Llc 10 percent owner THE CORPORATION TRUST COMPANY 1209 ORANGE STREET WILMINGTON DE 19801
Hna Group Co., Ltd. 10 percent owner HNA BUILDING NO. 7 GUOXING ROAD HAIKOU, HAINAN F4 570203
Hna Hlt Holdco Iii Ltd 10 percent owner THE CENTER 99 QUEEN?S ROAD CENTRAL CENTRAL K3 999077
Hna Hlt Holdco I Llc 10 percent owner THE CORPORATION TRUST COMPANY 1209 ORANGE STREET WILMINGTON DE 19801
Blackstone Real Estate Holdings International Ii-q L.p. 10 percent owner C/O THE BLACKSTONE GROUP L.P. 345 PARK AVENUE NEW YORK NY 10154

Hilton Worldwide Holdings Headlines

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