Hilton Grand Vacations Inc (HGV)
Working capital 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 |
| Total current assets | US$ in thousands | 3,868,000 | 3,552,000 | 734,000 | 734,000 | 547,000 |
| Total current liabilities | US$ in thousands | 252,000 | 1,142,000 | 1,197,000 | 112,000 | 16,000 |
| Working capital turnover | 1.38 | 1.65 | — | 3.75 | 1.68 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $4,981,000K ÷ ($3,868,000K – $252,000K)
= 1.38
The working capital turnover for Hilton Grand Vacations Inc has shown significant fluctuations over the years based on the provided data. In December 2020, the working capital turnover was 1.68, indicating that the company generated $1.68 in net sales for every dollar of working capital invested. This figure increased substantially to 3.75 by December 2021, suggesting a more efficient utilization of working capital to generate sales.
However, the data for December 2022 is missing, making it difficult to draw a conclusion for that specific year. In December 2023, the working capital turnover decreased to 1.65, indicating a slight decrease in efficiency compared to the previous year. By December 2024, the working capital turnover further declined to 1.38, showing a less efficient use of working capital to generate sales.
Overall, based on the available data, there have been fluctuations in Hilton Grand Vacations Inc's working capital turnover, with periods of improved efficiency followed by decreases in efficiency. It is important for the company to closely monitor and manage its working capital to ensure optimal utilization for generating sales in the future.