Hilton Grand Vacations Inc (HGV)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,978,000 | 3,835,000 | 2,335,000 | 894,000 | 1,838,000 |
| Receivables | US$ in thousands | 507,000 | 511,000 | 302,000 | 119,000 | 174,000 |
| Receivables turnover | 7.85 | 7.50 | 7.73 | 7.51 | 10.56 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $3,978,000K ÷ $507,000K
= 7.85
The receivables turnover ratio for Hilton Grand Vacations Inc has been relatively stable over the past five years, ranging from 7.26 to 10.56. This ratio indicates that, on average, the company collects its accounts receivable approximately 7 to 10 times per year. A higher turnover ratio is generally favorable as it implies faster collection of receivables and better management of credit extended to customers.
The slight fluctuations in the receivables turnover ratio over the years may suggest variations in the company's credit policies or changes in the efficiency of its collection processes. A consistent and healthy receivables turnover ratio is crucial for maintaining liquidity and managing cash flow effectively. Overall, Hilton Grand Vacations Inc's receivables turnover ratio indicates a moderate efficiency in collecting outstanding receivables from customers.