Hilton Grand Vacations Inc (HGV)
Receivables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 4,981,000 | 3,978,000 | 3,835,000 | 2,335,000 | 894,000 |
| Receivables | US$ in thousands | 315,000 | 507,000 | 511,000 | 302,000 | 119,000 |
| Receivables turnover | 15.81 | 7.85 | 7.50 | 7.73 | 7.51 |
December 31, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $4,981,000K ÷ $315,000K
= 15.81
The receivables turnover ratio for Hilton Grand Vacations Inc has shown fluctuations over the past five years. As of December 31, 2020, the ratio stood at 7.51, indicating that the company collected its receivables approximately 7.51 times during that year. The ratio increased slightly to 7.73 by December 31, 2021, suggesting a slightly more efficient collection of receivables.
However, in the subsequent year, by December 31, 2022, the receivables turnover ratio dropped back to 7.50, signaling a potential slowdown in the company's collection of receivables compared to the previous year. The ratio then improved significantly by December 31, 2023, reaching 7.85, indicating a positive trend in the management of receivables.
Notably, by the end of December 31, 2024, the receivables turnover ratio spiked to 15.81, more than doubling from the previous year. This sharp increase may suggest either a significant enhancement in the company's collection efficiency or a change in the nature of receivables outstanding.
Overall, the fluctuation in the receivables turnover ratio of Hilton Grand Vacations Inc over the five-year period indicates varying levels of effectiveness in collecting outstanding receivables, with the most recent year showing a remarkable improvement, possibly requiring further investigation to understand the underlying reasons for such a significant change.