Hilton Grand Vacations Inc (HGV)
Fixed asset turnover
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 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 | 1,838,000 | 2,012,000 | 1,973,000 | 2,082,000 |
| Property, plant and equipment | US$ in thousands | 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 | 778,000 | 765,000 | 673,000 | 644,000 |
| Fixed asset turnover | 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 | 2.36 | 2.63 | 2.93 | 3.23 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $3,978,000K ÷ $758,000K
= 5.25
Fixed asset turnover is a crucial efficiency ratio that measures how effectively a company is utilizing its fixed assets to generate revenue. In the case of Hilton Grand Vacations Inc, the fixed asset turnover has shown a positive trend over the past eight quarters, increasing from 3.82 in Q1 2022 to 5.25 in Q4 2023.
The consistent improvement in the fixed asset turnover ratio indicates that Hilton Grand Vacations Inc has been able to generate more revenue relative to its investment in fixed assets. This suggests that the company is efficiently utilizing its property, plant, and equipment to generate sales.
A higher fixed asset turnover ratio implies better asset utilization and operational efficiency, which could lead to improved profitability and financial performance. The increasing trend in Hilton Grand Vacations Inc's fixed asset turnover ratio is a positive sign for investors and stakeholders, indicating that the company is effectively managing its fixed assets to drive revenue growth.
Overall, the upward trajectory of Hilton Grand Vacations Inc's fixed asset turnover ratio demonstrates the company's ability to maximize the productivity of its fixed assets and generate more revenue from its existing asset base.