Stock Analysis on Net
Stock Analysis on Net

Hilton Worldwide Holdings Inc. (NYSE:HLT)

This company has been moved to the archive! The financial data has not been updated since August 7, 2024.

Analysis of Income Taxes

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Income Tax Expense (Benefit)

Hilton Worldwide Holdings Inc., income tax expense (benefit), continuing operations

US$ in millions

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12 months ended: Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Federal 586 306 89 (6) 190
State 136 81 45 (32) 60
Foreign 83 56 23 69 128
Current 805 443 157 31 378
Federal (250) 16 51 (102) (61)
State (83) 6 (14) (34) (5)
Foreign 69 12 (41) (99) 46
Deferred (264) 34 (4) (235) (20)
Provision (benefit) for income taxes 541 477 153 (204) 358

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Item Description The company
Current Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations. Hilton Worldwide Holdings Inc. current increased from 2021 to 2022 and from 2022 to 2023.
Deferred Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations. Hilton Worldwide Holdings Inc. deferred increased from 2021 to 2022 but then decreased significantly from 2022 to 2023.
Provision (benefit) for income taxes Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. Hilton Worldwide Holdings Inc. provision (benefit) for income taxes increased from 2021 to 2022 and from 2022 to 2023.

Effective Income Tax Rate (EITR)

Hilton Worldwide Holdings Inc., effective income tax rate (EITR) reconciliation

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Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Statutory U.S. federal income tax rate 21.00% 21.00% 21.00% 21.00% 21.00%
Effective income tax rate 31.97% 27.51% 27.32% 22.08% 28.78%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Item Description The company
Effective income tax rate Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. Hilton Worldwide Holdings Inc. effective income tax rate increased from 2021 to 2022 and from 2022 to 2023.

Components of Deferred Tax Assets and Liabilities

Hilton Worldwide Holdings Inc., components of deferred tax assets and liabilities

US$ in millions

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Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Net tax loss carryforwards and carrybacks 604 641 649 593 386
Compensation 124 117 101 135 138
Reserves 81 66 76 71 33
Operating and finance lease liabilities 290 301 341 382 404
Deferred income 558 271 278 271 260
Foreign tax credit carryforwards 63 49 48 48 49
Other 114 102 144 153 51
Gross deferred tax assets 1,834 1,547 1,637 1,653 1,321
Valuation allowance (698) (649) (669) (654) (501)
Deferred tax assets 1,136 898 968 999 820
Brands (1,143) (1,151) (1,152) (1,147) (1,133)
Operating and finance lease ROU assets (195) (206) (218) (207) (210)
Other (59) (72) (85) (100) (172)
Deferred tax liabilities (1,397) (1,429) (1,455) (1,454) (1,515)
Net deferred taxes (261) (531) (487) (455) (695)

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Item Description The company
Gross deferred tax assets Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. Hilton Worldwide Holdings Inc. gross deferred tax assets decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.
Deferred tax assets Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. Hilton Worldwide Holdings Inc. deferred tax assets decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.
Net deferred taxes Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting. Hilton Worldwide Holdings Inc. net deferred taxes decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.

Deferred Tax Assets and Liabilities, Classification

Hilton Worldwide Holdings Inc., deferred tax assets and liabilities, classification

US$ in millions

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Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Deferred income tax assets 140 204 213 194 100
Deferred income tax liabilities 401 735 700 649 795

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Item Description The company
Deferred income tax assets Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, with jurisdictional netting and classified as noncurrent. Hilton Worldwide Holdings Inc. deferred income tax assets decreased from 2021 to 2022 and from 2022 to 2023.
Deferred income tax liabilities Amount, after deferred tax asset, of deferred tax liability attributable to taxable differences, with jurisdictional netting and classified as noncurrent. Hilton Worldwide Holdings Inc. deferred income tax liabilities increased from 2021 to 2022 but then decreased significantly from 2022 to 2023.

Adjustments to Financial Statements: Removal of Deferred Taxes

Hilton Worldwide Holdings Inc., adjustments to financial statements

US$ in millions

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Adjustment to Total Assets
Total assets (as reported) 15,401 15,512 15,441 16,755 14,957
Less: Noncurrent deferred tax assets, net 140 204 213 194 100
Total assets (adjusted) 15,261 15,308 15,228 16,561 14,857
Adjustment to Total Liabilities
Total liabilities (as reported) 17,748 16,610 16,260 18,241 15,429
Less: Noncurrent deferred tax liabilities, net 401 735 700 649 795
Total liabilities (adjusted) 17,347 15,875 15,560 17,592 14,634
Adjustment to Total Hilton Stockholders’ Deficit
Total Hilton stockholders’ deficit (as reported) (2,360) (1,102) (821) (1,490) (482)
Less: Net deferred tax assets (liabilities) (261) (531) (487) (455) (695)
Total Hilton stockholders’ deficit (adjusted) (2,099) (571) (334) (1,035) 213
Adjustment to Net Income (loss) Attributable To Hilton Stockholders
Net income (loss) attributable to Hilton stockholders (as reported) 1,141 1,255 410 (715) 881
Add: Deferred income tax expense (benefit) (264) 34 (4) (235) (20)
Net income (loss) attributable to Hilton stockholders (adjusted) 877 1,289 406 (950) 861

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Hilton Worldwide Holdings Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

Hilton Worldwide Holdings Inc., adjusted financial ratios

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Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Net Profit Margin
Reported net profit margin 11.15% 14.31% 7.08% -16.60% 9.32%
Adjusted net profit margin 8.57% 14.69% 7.01% -22.06% 9.11%
Total Asset Turnover
Reported total asset turnover 0.66 0.57 0.37 0.26 0.63
Adjusted total asset turnover 0.67 0.57 0.38 0.26 0.64
Financial Leverage
Reported financial leverage — — — — —
Adjusted financial leverage — — — — 69.75
Return on Equity (ROE)
Reported ROE — — — — —
Adjusted ROE — — — — 404.23%
Return on Assets (ROA)
Reported ROA 7.41% 8.09% 2.66% -4.27% 5.89%
Adjusted ROA 5.75% 8.42% 2.67% -5.74% 5.80%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Financial ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Hilton Worldwide Holdings Inc. adjusted net profit margin ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Hilton Worldwide Holdings Inc. adjusted total asset turnover ratio improved from 2021 to 2022 and from 2022 to 2023.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Hilton Worldwide Holdings Inc. adjusted ROA improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023.

Hilton Worldwide Holdings Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

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Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income (loss) attributable to Hilton stockholders 1,141 1,255 410 (715) 881
Revenues 10,235 8,773 5,788 4,307 9,452
Profitability Ratio
Net profit margin1 11.15% 14.31% 7.08% -16.60% 9.32%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income (loss) attributable to Hilton stockholders 877 1,289 406 (950) 861
Revenues 10,235 8,773 5,788 4,307 9,452
Profitability Ratio
Adjusted net profit margin2 8.57% 14.69% 7.01% -22.06% 9.11%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

1 Net profit margin = 100 × Net income (loss) attributable to Hilton stockholders ÷ Revenues
= 100 × 1,141 ÷ 10,235 = 11.15%

2 Adjusted net profit margin = 100 × Adjusted net income (loss) attributable to Hilton stockholders ÷ Revenues
= 100 × 877 ÷ 10,235 = 8.57%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Hilton Worldwide Holdings Inc. adjusted net profit margin ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.

Adjusted Total Asset Turnover

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Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Revenues 10,235 8,773 5,788 4,307 9,452
Total assets 15,401 15,512 15,441 16,755 14,957
Activity Ratio
Total asset turnover1 0.66 0.57 0.37 0.26 0.63
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Revenues 10,235 8,773 5,788 4,307 9,452
Adjusted total assets 15,261 15,308 15,228 16,561 14,857
Activity Ratio
Adjusted total asset turnover2 0.67 0.57 0.38 0.26 0.64

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

1 Total asset turnover = Revenues ÷ Total assets
= 10,235 ÷ 15,401 = 0.66

2 Adjusted total asset turnover = Revenues ÷ Adjusted total assets
= 10,235 ÷ 15,261 = 0.67

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Hilton Worldwide Holdings Inc. adjusted total asset turnover ratio improved from 2021 to 2022 and from 2022 to 2023.

Adjusted Financial Leverage

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Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Total assets 15,401 15,512 15,441 16,755 14,957
Total Hilton stockholders’ deficit (2,360) (1,102) (821) (1,490) (482)
Solvency Ratio
Financial leverage1 — — — — —
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted total assets 15,261 15,308 15,228 16,561 14,857
Adjusted total Hilton stockholders’ deficit (2,099) (571) (334) (1,035) 213
Solvency Ratio
Adjusted financial leverage2 — — — — 69.75

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

1 Financial leverage = Total assets ÷ Total Hilton stockholders’ deficit
= 15,401 ÷ -2,360 = —

2 Adjusted financial leverage = Adjusted total assets ÷ Adjusted total Hilton stockholders’ deficit
= 15,261 ÷ -2,099 = —

Adjusted Return on Equity (ROE)

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income (loss) attributable to Hilton stockholders 1,141 1,255 410 (715) 881
Total Hilton stockholders’ deficit (2,360) (1,102) (821) (1,490) (482)
Profitability Ratio
ROE1 — — — — —
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income (loss) attributable to Hilton stockholders 877 1,289 406 (950) 861
Adjusted total Hilton stockholders’ deficit (2,099) (571) (334) (1,035) 213
Profitability Ratio
Adjusted ROE2 — — — — 404.23%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

1 ROE = 100 × Net income (loss) attributable to Hilton stockholders ÷ Total Hilton stockholders’ deficit
= 100 × 1,141 ÷ -2,360 = —

2 Adjusted ROE = 100 × Adjusted net income (loss) attributable to Hilton stockholders ÷ Adjusted total Hilton stockholders’ deficit
= 100 × 877 ÷ -2,099 = —

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income (loss) attributable to Hilton stockholders 1,141 1,255 410 (715) 881
Total assets 15,401 15,512 15,441 16,755 14,957
Profitability Ratio
ROA1 7.41% 8.09% 2.66% -4.27% 5.89%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income (loss) attributable to Hilton stockholders 877 1,289 406 (950) 861
Adjusted total assets 15,261 15,308 15,228 16,561 14,857
Profitability Ratio
Adjusted ROA2 5.75% 8.42% 2.67% -5.74% 5.80%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

1 ROA = 100 × Net income (loss) attributable to Hilton stockholders ÷ Total assets
= 100 × 1,141 ÷ 15,401 = 7.41%

2 Adjusted ROA = 100 × Adjusted net income (loss) attributable to Hilton stockholders ÷ Adjusted total assets
= 100 × 877 ÷ 15,261 = 5.75%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Hilton Worldwide Holdings Inc. adjusted ROA improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023.