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Hilton Worldwide Holdings Financial Strength

: 4 (As of Jun. 2022)
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Hilton Worldwide Holdings has the Financial Strength Rank of 4.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

Hilton Worldwide Holdings's Interest Coverage for the quarter that ended in Jun. 2022 was 6.04. Hilton Worldwide Holdings's debt to revenue ratio for the quarter that ended in Jun. 2022 was 1.06. As of today, Hilton Worldwide Holdings's Altman Z-Score is 1.71.


Competitive Comparison

For the Lodging subindustry, Hilton Worldwide Holdings's Financial Strength, along with its competitors' market caps and Financial Strength 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 Financial Strength Distribution

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

* The bar in red indicates where Hilton Worldwide Holdings's Financial Strength falls into.



Hilton Worldwide Holdings Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Hilton Worldwide Holdings's Interest Expense for the months ended in Jun. 2022 was $-99 Mil. Its Operating Income for the months ended in Jun. 2022 was $598 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2022 was $9,455 Mil.

Hilton Worldwide Holdings's Interest Coverage for the quarter that ended in Jun. 2022 is

Interest Coverage=-1*Operating Income (Q: Jun. 2022 )/Interest Expense (Q: Jun. 2022 )
=-1*598/-99
=6.04

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Hilton Worldwide Holdings's Debt to Revenue Ratio for the quarter that ended in Jun. 2022 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2022 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(41 + 9455) / 8960
=1.06

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Hilton Worldwide Holdings has a Z-score of 1.71, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 1.71 is in distress zone. This implies bankruptcy possibility in the next two years.

* 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) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

Hilton Worldwide Holdings has the Financial Strength Rank of 4.


Hilton Worldwide Holdings Financial Strength Related Terms

Thank you for viewing the detailed overview of Hilton Worldwide Holdings's Financial Strength 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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