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.

Financial Reporting Quality: Aggregate Accruals 

Microsoft Excel

Earnings can be decomposed into cash and accrual components. The accrual component (aggregate accruals) has been found to have less persistence than the cash component, and therefore (1) earnings with higher accrual component are less persistent than earnings with smaller accrual component, all else equal; and (2) the cash component of earnings should receive a higher weighting evaluating company performance.


Balance-Sheet-Based Accruals Ratio

Hilton Worldwide Holdings Inc., balance sheet computation of aggregate accruals

US$ in millions

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Operating Assets
Total assets 15,401 15,512 15,441 16,755 14,957
Less: Cash and cash equivalents 800 1,209 1,427 3,218 538
Less: Restricted cash and cash equivalents 75 77 85 45 92
Operating assets 14,526 14,226 13,929 13,492 14,327
Operating Liabilities
Total liabilities 17,748 16,610 16,260 18,241 15,429
Less: Current maturities of long-term debt 39 39 54 56 37
Less: Long-term debt, excluding current maturities 9,157 8,708 8,712 10,431 7,956
Operating liabilities 8,552 7,863 7,494 7,754 7,436
 
Net operating assets1 5,974 6,363 6,435 5,738 6,891
Balance-sheet-based aggregate accruals2 (389) (72) 697 (1,153)
Financial Ratio
Balance-sheet-based accruals ratio3 -6.31% -1.13% 11.45% -18.26%
Benchmarks
Balance-Sheet-Based Accruals Ratio, Competitors4
Airbnb Inc.
Booking Holdings Inc. -468.72% -68.38% 2.00% -21.49%
Chipotle Mexican Grill Inc. 18.41% 18.43% 13.32% 28.47%
McDonald’s Corp. 9.94% 8.46% 0.56% 4.29%
Starbucks Corp. 13.66% 10.72% -25.79% 45.93% 25.97%
Balance-Sheet-Based Accruals Ratio, Sector
Consumer Services 5.15% -1.96% -0.80% -1.16%
Balance-Sheet-Based Accruals Ratio, Industry
Consumer Discretionary 11.73% 12.34% 15.91% 5.08%

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).

1 2023 Calculation
Net operating assets = Operating assets – Operating liabilities
= 14,5268,552 = 5,974

2 2023 Calculation
Balance-sheet-based aggregate accruals = Net operating assets2023 – Net operating assets2022
= 5,9746,363 = -389

3 2023 Calculation
Balance-sheet-based accruals ratio = 100 × Balance-sheet-based aggregate accruals ÷ Avg. net operating assets
= 100 × -389 ÷ [(5,974 + 6,363) ÷ 2] = -6.31%

4 Click competitor name to see calculations.

Financial ratio Description The company
Balance-sheet-based accruals ratio Ratio is found by dividing balance-sheet-based aggregate accruals by average net operating assets. Using the balance-sheet-based accruals ratio, Hilton Worldwide Holdings Inc. deteriorated earnings quality from 2022 to 2023.

Cash-Flow-Statement-Based Accruals Ratio

Hilton Worldwide Holdings Inc., cash flow statement computation of aggregate accruals

US$ in millions

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Net income (loss) attributable to Hilton stockholders 1,141 1,255 410 (715) 881
Less: Net cash provided by operating activities 1,946 1,681 109 708 1,384
Less: Net cash used in investing activities (305) (123) (57) (107) (123)
Cash-flow-statement-based aggregate accruals (500) (303) 358 (1,316) (380)
Financial Ratio
Cash-flow-statement-based accruals ratio1 -8.11% -4.74% 5.88% -20.84%
Benchmarks
Cash-Flow-Statement-Based Accruals Ratio, Competitors2
Airbnb Inc.
Booking Holdings Inc. -519.27% -67.03% -11.13% -40.67%
Chipotle Mexican Grill Inc. 24.18% 30.18% -9.35% 13.32%
McDonald’s Corp. 6.77% 5.35% 2.17% 0.04%
Starbucks Corp. 12.06% 36.35% -47.73% 36.84% -22.66%
Cash-Flow-Statement-Based Accruals Ratio, Sector
Consumer Services 0.66% -4.61% -8.21% -15.73%
Cash-Flow-Statement-Based Accruals Ratio, Industry
Consumer Discretionary 4.90% 1.96% 12.28% 3.83%

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).

1 2023 Calculation
Cash-flow-statement-based accruals ratio = 100 × Cash-flow-statement-based aggregate accruals ÷ Avg. net operating assets
= 100 × -500 ÷ [(5,974 + 6,363) ÷ 2] = -8.11%

2 Click competitor name to see calculations.

Financial ratio Description The company
Cash-flow-statement-based accruals ratio Ratio is found by dividing cash-flow-statement-based aggregate accruals by average net operating assets. Using the cash-flow-statement-based accruals ratio, Hilton Worldwide Holdings Inc. deteriorated earnings quality from 2022 to 2023.