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Hilton Worldwide Holdings Altman Z-Score

: 1.67 (As of Today)
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Warning Sign:

Altman Z-score of 1.65 is in distress zone. This implies bankruptcy possibility in the next two years.

Hilton Worldwide Holdings has a Altman Z-Score of 1.67, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

The zones of discrimination were as such:

When Altman Z-Score <= 1.8, it is in Distress Zones.
When Altman Z-Score >= 3, it is in Safe Zones.
When Altman Z-Score is between 1.8 and 3, it is in Grey Zones.

The historical rank and industry rank for Hilton Worldwide Holdings's Altman Z-Score or its related term are showing as below:

HLT' s Altman Z-Score Range Over the Past 10 Years
Min: 0.1   Med: 0.9   Max: 1.73
Current: 1.65

During the past 12 years, Hilton Worldwide Holdings's highest Altman Z-Score was 1.73. The lowest was 0.10. And the median was 0.90.


Hilton Worldwide Holdings Altman Z-Score Historical Data

The historical data trend for Hilton Worldwide Holdings's Altman Z-Score 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
Altman Z-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.32 1.23 1.58 0.74 1.60

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
Altman Z-Score 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 0.82 1.16 1.60 1.73 1.45

Competitive Comparison

For the Lodging subindustry, Hilton Worldwide Holdings's Altman Z-Score, along with its competitors' market caps and Altman Z-Score 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 Altman Z-Score Distribution

For the Travel & Leisure industry and Consumer Cyclical sector, Hilton Worldwide Holdings's Altman Z-Score distribution charts can be found below:

* The bar in red indicates where Hilton Worldwide Holdings's Altman Z-Score falls into.



Hilton Worldwide Holdings Altman Z-Score Calculation

Altman 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.

Hilton Worldwide Holdings's Altman Z-Score for today is calculated with this formula:

Z=1.2*X1+1.4*X2+3.3*X3+0.6*X4+1.0*X5
=1.2*-0.0231+1.4*-0.376+3.3*0.1146+0.6*2.2672+1.0*0.4906
=1.67

* 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. GuruFocus does not calculate Altman Z-Score when X4 or X5 value is 0.

Trailing Twelve Months (TTM) ended in Jun. 2022:
Total Assets was $15,382 Mil.
Total Current Assets was $2,840 Mil.
Total Current Liabilities was $3,195 Mil.
Retained Earnings was $-5,783 Mil.
Pre-Tax Income was 513 + 291 + 237 + 340 = $1,381 Mil.
Interest Expense was -99 + -90 + -95 + -98 = $-382 Mil.
Revenue was 2240 + 1721 + 1836 + 1749 = $7,546 Mil.
Market Cap (Today) was $36,663 Mil.
Total Liabilities was $16,171 Mil.

* Note that for stock reported semi-annually or annually, GuruFocus uses latest annual data as the TTM data.

X1=Working Capital/Total Assets
=(Total Current Assets - Total Current Liabilities)/Total Assets
=(2840 - 3195)/15382
=-0.0231

X2=Retained Earnings/Total Assets
=-5783/15382
=-0.376

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(1381 - -382)/15382
=0.1146

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=36663.172/16171
=2.2672

X5=Revenue/Total Assets
=7546/15382
=0.4906

The zones of discrimination were as such:

Distress Zones - 1.81 < Grey Zones < 2.99 - Safe Zones

Hilton Worldwide Holdings has a Altman Z-Score of 1.67 indicating it is in Distress Zones.

Study by Altman found that companies that are in Distress Zone have more than 80% of chances of bankruptcy in two years.


Hilton Worldwide Holdings  (NYSE:HLT) Altman Z-Score Explanation

X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.

X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.

X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firm's assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.

X4, Market Value of Equity/Book Value of Total Liabilities (MVE/TL): The measure shows how much the firm's assets can decline in value (measured by market value of equity plus debt) before the liabilities exceed the assets and the firm becomes insolvent.

X5, Revenue/Total Assets (S/TA): The capital-turnover ratio is a standard financial ratio illustrating the sales generating ability of the firm's assets.

Read more about Altman Z-Score and the original research.


Be Aware

Altman Z-Score does not apply to financial companies.


Hilton Worldwide Holdings Altman Z-Score Related Terms

Thank you for viewing the detailed overview of Hilton Worldwide Holdings's Altman Z-Score 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
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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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