What does debt-to-equity mean?

How much debt the company carries for every dollar of shareholder equity.

How do you interpret debt-to-equity?

Lower is generally safer, but moderate leverage can boost returns. Read in the context of cash-flow stability — a utility tolerates more debt than a cyclical. Negative equity makes the ratio meaningless and it is suppressed there.

How does debt-to-equity compare across companies?

Comparable within an industry; capital structures differ sharply across sectors. Not meaningful for banks.

Hilton Worldwide HLT Debt-to-equity

Discontinued — last reported Q1 '19

Debt-to-equity at other companies

Hyatt HotelsH

1.6×+0.3×

AirbnbABNB

0.3×0.0×

Host Hotels & ResortsHST

0.8×0.0×

Invitation HomesINVH

1.1×+0.2×

Expedia Group, Inc.EXPE

8.2×+2.1×

Other financials

Income statement

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Revenue$2.9B+9.0%

Operating income$678.0M+26.5%

Net income$385.0M+28.3%

EPS (diluted)$1.66+35.0%

Balance sheet

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Cash & equivalents$619.0M-23.3%

Total debt$13.2B+5.4%

Total equity-$5.9B-34.9%

Total assets$16.4B+2.1%

Cash flow

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Operating cash flow$618.0M+36.7%

CapEx$9.0M-52.6%

Free cash flow$609.0M+40.7%

Valuation

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Market cap$79.41B+27.4%

Enterprise value$91.97B+23.8%

P/E51.5×+11.8×

P/S6.5×+0.9×

Profitability

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Operating margin23.1%+2.1pp

Net margin12.6%-1.3pp

Returns & leverage

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Return on equity82.6%—

Current ratio0.6×0.0×

Where this comes from

Calculated from Hilton Worldwide’s reported figures.

total debt/total stockholders equity=89.7×

Based on the most recent quarter.

The official record: Hilton Worldwide’s 10-Q, filed May 7, 2020, on SEC EDGAR. View the filing →

Questions, answered.

What does debt-to-equity mean?: How much debt the company carries for every dollar of shareholder equity.
How do you interpret debt-to-equity?: Lower is generally safer, but moderate leverage can boost returns. Read in the context of cash-flow stability — a utility tolerates more debt than a cyclical. Negative equity makes the ratio meaningless and it is suppressed there.
How does debt-to-equity compare across companies?: Comparable within an industry; capital structures differ sharply across sectors. Not meaningful for banks.