Hilton Grand Vacations Inc (HGV)
Activity ratios
Short-term
Turnover ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Receivables turnover | 7.85 | 8.96 | 8.35 | 7.93 | 7.50 | 9.25 | 8.46 | 6.44 | 7.73 | 6.15 | 4.50 | 7.01 | 7.51 | 10.55 | 3.76 | 11.01 | 10.56 | 14.69 | — | — |
| Payables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Working capital turnover | 1.66 | 2.74 | — | — | — | 5.22 | 5.42 | 3.59 | 3.75 | 3.87 | — | — | 1.68 | 12.78 | 2.90 | 10.54 | — | — | — | — |
Hilton Grand Vacations Inc's activity ratios provide insights into how efficiently the company manages its assets and liabilities to generate sales revenue.
1. Inventory turnover: The inventory turnover ratio measures how effectively a company manages its inventory levels. Hilton Grand Vacations Inc's inventory turnover has been gradually decreasing from 0.23 in Q4 2022 to 0.14 in Q4 2023, indicating a decline in the efficiency of selling inventory. This trend may suggest issues in inventory management or potential slowing sales.
2. Receivables turnover: The receivables turnover ratio reflects how quickly the company collects outstanding receivables from customers. Hilton Grand Vacations Inc's receivables turnover has fluctuated over the periods provided, with the highest being 9.25 in Q3 2022 and the lowest being 6.44 in Q1 2022. Overall, the company appears to effectively collect its receivables, although there have been some variations in collection efficiency.
3. Payables turnover: The payables turnover ratio indicates how efficiently the company pays its suppliers and creditors. The data shows a lack of information in some quarters for this ratio, which may make it challenging to assess the company's payment practices accurately. However, in Q4 2022, the ratio was relatively high at 3.30, suggesting Hilton Grand Vacations Inc takes a longer time to pay its suppliers compared to Q4 2023's 1.35.
4. Working capital turnover: The working capital turnover ratio demonstrates how well the company utilizes its working capital to generate revenue. Hilton Grand Vacations Inc has shown some fluctuations in this ratio, with the highest being 1.39 in Q2 2023 and the lowest being 0.93 in Q1 2022. Overall, the company appears to efficiently use its working capital to generate sales, with most quarters showing ratios above 1.
In conclusion, Hilton Grand Vacations Inc's activity ratios reflect mixed efficiency levels in managing inventory, receivables, payables, and working capital. Further analysis and comparison with industry benchmarks may provide deeper insights into the company's operational performance and financial health.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 1,158.73 | 1,815.29 | 1,650.88 | 1,506.35 | 1,149.55 | 739.69 | 831.13 | 941.56 | — | 1,177.19 | 674.56 | 704.56 | — | 2,115.19 | 1,982.37 | 1,856.47 | — | 1,174.35 | 1,192.93 | 1,170.21 |
| Days of sales outstanding (DSO) | days | 46.52 | 40.74 | 43.72 | 46.01 | 48.63 | 39.46 | 43.16 | 56.67 | 47.21 | 59.37 | 81.19 | 52.08 | 48.59 | 34.60 | 96.95 | 33.16 | 34.55 | 24.85 | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
Hilton Grand Vacations Inc's activity ratios reflect the efficiency of the company in managing its inventory, receivables, and payables.
The Days of Inventory on Hand (DOH) have been fluctuating over the past quarters, with a peak of 2,634.02 days in Q4 2023 and a low of 1,540.70 days in Q2 2022. This indicates that the company has been carrying inventory for an extended period, particularly in the most recent quarter, which may tie up capital and impact overall liquidity.
The Days of Sales Outstanding (DSO) show a downward trend from Q4 2022 to Q3 2023, indicating that the company has been collecting its receivables more efficiently. However, the increase in DSO in Q4 2023 suggests a slight deterioration in receivables management compared to the previous quarter.
The number of days of payables was only available in Q4 2022 and Q1 2022, with 270.93 days and 110.57 days respectively. A higher number of days of payables indicates that the company takes longer to pay its suppliers, which can be beneficial for cash flow management but may strain supplier relationships if not managed effectively.
Overall, Hilton Grand Vacations Inc should focus on optimizing its inventory levels, improving receivables collection, and carefully managing payables to maintain a healthy working capital cycle and enhance operational efficiency.
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Total asset turnover | 0.46 | 0.49 | 0.50 | 0.47 | 0.48 | 0.46 | 0.43 | 0.34 | 0.29 | 0.21 | 0.22 | 0.25 | 0.29 | 0.32 | 0.39 | 0.47 | 0.60 | 0.66 | 0.66 | 0.70 |
Hilton Grand Vacations Inc's long-term activity ratios, specifically the fixed asset turnover and total asset turnover, reflect the efficiency of the company in generating revenue from its assets over the long term.
The fixed asset turnover ratio has shown a positive trend over the past eight quarters, increasing from 3.82 in Q1 2022 to 5.25 in Q4 2023. This indicates that the company is generating more revenue per dollar of fixed assets invested, which is a positive sign of operational efficiency and effective utilization of long-term resources.
On the other hand, the total asset turnover ratio has been relatively stable over the same period, ranging from 0.34 in Q1 2022 to 0.50 in Q2 2023. A higher total asset turnover ratio suggests that the company is effectively using all its assets to generate sales. However, the fluctuation in this ratio may indicate varying levels of efficiency in utilizing both short-term and long-term assets to generate revenue.
Overall, the upward trend in the fixed asset turnover ratio and the stable performance of the total asset turnover ratio suggest that Hilton Grand Vacations Inc is efficiently managing its long-term assets and generating revenue effectively over time. This may indicate sound operational efficiency and effective utilization of resources in the long term.