Hilton Grand Vacations Inc (HGV)
Fixed asset turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 4,981,000 | 4,716,000 | 4,428,000 | 4,200,000 | 3,978,000 | 3,951,000 | 4,049,000 | 3,990,000 | 3,835,000 | 3,681,000 | 3,493,000 | 2,879,000 | 2,335,000 | 1,709,000 | 989,000 | 778,000 | 894,000 | 1,150,000 | 1,408,000 | 1,739,000 |
| Property, plant and equipment | US$ in thousands | 792,000 | 652,000 | 902,000 | 953,000 | 758,000 | 789,000 | 807,000 | 797,000 | 798,000 | 776,000 | 801,000 | 754,000 | 756,000 | 822,000 | 508,000 | 501,000 | 501,000 | 488,000 | 484,000 | 473,000 |
| Fixed asset turnover | 6.29 | 7.23 | 4.91 | 4.41 | 5.25 | 5.01 | 5.02 | 5.01 | 4.81 | 4.74 | 4.36 | 3.82 | 3.09 | 2.08 | 1.95 | 1.55 | 1.78 | 2.36 | 2.91 | 3.68 |
December 31, 2024 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $4,981,000K ÷ $792,000K
= 6.29
The fixed asset turnover ratio for Hilton Grand Vacations Inc has shown fluctuations over the period provided. The ratio indicates the efficiency of the company in generating sales revenue relative to its investment in fixed assets.
Initially, the fixed asset turnover ratio stood at 3.68 as of March 31, 2020, indicating that for every dollar invested in fixed assets, the company generated $3.68 in sales. However, this ratio gradually declined, reaching a low of 1.55 as of March 31, 2021, before starting to recover.
From June 30, 2021, onwards, there was a noticeable improvement in the fixed asset turnover ratio, with the ratio increasing consistently quarter over quarter. By December 31, 2024, the ratio reached a high of 6.29, suggesting that the company was effectively utilizing its fixed assets to drive sales growth.
Overall, the increasing trend observed in the fixed asset turnover ratio indicates that Hilton Grand Vacations Inc was able to enhance its operational efficiency and effectively leverage its fixed assets to generate sales revenue during the period under review. However, it is essential to monitor this ratio continuously to ensure sustained efficiency in asset utilization.