Hilton Grand Vacations Inc (HGV)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,978,000 | 3,835,000 | 2,335,000 | 894,000 | 1,838,000 |
| Property, plant and equipment | US$ in thousands | 758,000 | 798,000 | 756,000 | 501,000 | 778,000 |
| Fixed asset turnover | 5.25 | 4.81 | 3.09 | 1.78 | 2.36 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $3,978,000K ÷ $758,000K
= 5.25
Hilton Grand Vacations Inc's fixed asset turnover has shown an improving trend over the past five years, increasing from 2.36 in 2019 to 5.25 in 2023. This indicates that the company is generating more revenue per dollar of fixed assets invested.
The significant increase in fixed asset turnover from 2021 to 2022 suggests that the company has become more efficient in utilizing its fixed assets to generate sales. This trend continued in 2023, reaching the highest level in the past five years.
Overall, the improving fixed asset turnover ratio reflects positively on Hilton Grand Vacations Inc's ability to efficiently utilize its fixed assets to generate revenue, which is a key driver of profitability and sustainability in the long term.