Hilton Grand Vacations Inc (HGV)
Inventory 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 821,000 | 538,000 | 518,000 | 491,000 | 441,000 | 263,000 | 283,000 | 315,000 | 368,000 | 565,000 | 545,000 | 471,000 | 359,000 | 453,000 | 395,000 | 373,000 | 378,000 | 161,000 | 167,000 | 174,000 |
| Inventory | US$ in thousands | 2,244,000 | 2,243,000 | 1,929,000 | 1,805,000 | 1,400,000 | 1,308,000 | 1,280,000 | 1,300,000 | 1,159,000 | 1,145,000 | 1,241,000 | 1,215,000 | 0 | 1,461,000 | 730,000 | 720,000 | 0 | 933,000 | 907,000 | 885,000 |
| Inventory turnover | 0.37 | 0.24 | 0.27 | 0.27 | 0.32 | 0.20 | 0.22 | 0.24 | 0.32 | 0.49 | 0.44 | 0.39 | — | 0.31 | 0.54 | 0.52 | — | 0.17 | 0.18 | 0.20 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $821,000K ÷ $2,244,000K
= 0.37
Inventory turnover is a financial ratio that measures how efficiently a company manages its inventory by calculating the number of times its inventory is sold and replaced over a specific period. A higher inventory turnover ratio indicates that the company is selling its inventory more quickly.
Based on the data provided for Hilton Grand Vacations Inc, we observe fluctuations in the inventory turnover ratio over the periods mentioned. For the most recent period of December 31, 2024, the inventory turnover ratio stood at 0.37, which signifies that the company turned over its inventory approximately 0.37 times during that period. This indicates a moderate efficiency in managing their inventory levels.
Analyzing the trend over the previous periods, we note that the inventory turnover ratio varied between 0.17 and 0.54, showing some inconsistency in how quickly Hilton Grand Vacations Inc is selling its inventory. Notably, there was a significant increase in the inventory turnover ratio from 0.17 in September 30, 2020, to 0.54 in June 30, 2021, indicating a significant improvement in inventory management efficiency during that period.
However, it is important to note that the inventory turnover ratio decreased in subsequent periods, reaching 0.22 by June 30, 2023, before showing a slight increase to 0.27 by June 30, 2024. This fluctuation could imply changes in sales volumes, production levels, or inventory management strategies within the company.
In summary, although Hilton Grand Vacations Inc has shown improvement in inventory turnover efficiency at certain points, there have been fluctuations in the ratio over the periods analyzed. Further evaluation of the company's inventory management practices and the reasons behind these fluctuations may provide insights into its operational performance and potential areas for enhancement.