Hilton Grand Vacations Inc (HGV)
Inventory 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 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 | 155,000 | 161,000 | 164,000 | 165,000 |
| Inventory | US$ in thousands | 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 | 0 | 518,000 | 536,000 | 529,000 |
| Inventory turnover | 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 | — | 0.31 | 0.31 | 0.31 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $441,000K ÷ $1,400,000K
= 0.32
The inventory turnover ratio of Hilton Grand Vacations Inc has been relatively stable over the past eight quarters, ranging from 0.14 to 0.24. A lower inventory turnover ratio indicates that the company is holding onto inventory for a longer period before selling it, which may tie up capital and increase storage costs.
The highest inventory turnover ratio was recorded in Q2 2022, implying that during that period, Hilton Grand Vacations Inc efficiently managed its inventory by selling and replenishing stock more frequently. On the other hand, the lowest inventory turnover ratio was seen in Q4 2023, suggesting that the company may have experienced difficulties in converting its inventory into sales during that quarter.
Overall, Hilton Grand Vacations Inc should aim to consistently monitor and improve its inventory turnover ratio to ensure optimal utilization of resources and maintain healthy liquidity levels.