Hilton Grand Vacations Inc (HGV)
Days of sales outstanding (DSO)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 15.81 | 7.85 | 7.50 | 7.73 | 7.51 | |
| DSO | days | 23.08 | 46.52 | 48.63 | 47.21 | 48.59 |
December 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 15.81
= 23.08
The days of sales outstanding (DSO) metric for Hilton Grand Vacations Inc has shown a consistent trend of improvement over the years, indicating efficient management of accounts receivable.
As of December 31, 2020, the DSO stood at 48.59 days, and by December 31, 2024, it had significantly decreased to 23.08 days. This downward trend suggests that the company has been successful in converting its accounts receivable into cash more quickly.
The reduction in DSO can be a positive signal of the company's strong credit policies, effective collection practices, and perhaps a customer base that pays promptly. By collecting payments faster, Hilton Grand Vacations Inc is likely improving its cash flow and overall financial health.
Overall, the declining trend in DSO for Hilton Grand Vacations Inc indicates efficient management of accounts receivable, which is crucial for maintaining liquidity and sustainable operations.