Hilton Grand Vacations Inc (HGV)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 7.85 | 7.50 | 7.73 | 7.51 | 10.56 | |
| DSO | days | 46.52 | 48.63 | 47.21 | 48.59 | 34.55 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 7.85
= 46.52
Based on the historical data provided, Hilton Grand Vacations Inc's Days of Sales Outstanding (DSO) has shown variations over the past five years. The DSO indicates the average number of days it takes for the company to collect payments from its customers after making a sale.
The trend in DSO for Hilton Grand Vacations Inc has been as follows:
- In 2019, the DSO was 34.55 days, indicating a relatively efficient collection process.
- In 2020, there was a slight increase in DSO to 48.59 days, which could suggest a slowdown in collections compared to the previous year.
- The trend continued in 2021 and 2022, with DSOs of 49.71 days and 50.25 days, respectively, indicating a further delay in collecting payments from customers.
- However, in 2023, there was a slight improvement in DSO to 46.52 days, which may suggest a more efficient collection process compared to the previous two years.
Overall, it is important for Hilton Grand Vacations Inc to monitor its DSO closely, as a decreasing trend in DSO indicates a more efficient accounts receivable management process, while an increasing trend may raise concerns about liquidity and potential credit risks.