Hilton Grand Vacations Inc (HGV)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 4,981,000 | 3,978,000 | 3,835,000 | 2,335,000 | 894,000 |
| Property, plant and equipment | US$ in thousands | 792,000 | 758,000 | 798,000 | 756,000 | 501,000 |
| Fixed asset turnover | 6.29 | 5.25 | 4.81 | 3.09 | 1.78 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $4,981,000K ÷ $792,000K
= 6.29
The fixed asset turnover ratio of Hilton Grand Vacations Inc has shown a consistent upward trend over the past five years. Starting at 1.78 in December 31, 2020, the ratio has increased steadily to reach 6.29 by December 31, 2024. This indicates that the company is generating more revenue relative to its investment in fixed assets each year. A higher fixed asset turnover ratio is generally considered favorable as it suggests that the company is effectively utilizing its assets to generate sales. The significant increase in the fixed asset turnover ratio implies improved operational efficiency and profitability for Hilton Grand Vacations Inc.