Hilton Grand Vacations Inc (HGV)
Working capital 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 |
| Total current assets | US$ in thousands | 3,552,000 | 734,000 | 734,000 | 547,000 | 241,000 |
| Total current liabilities | US$ in thousands | 1,151,000 | 1,197,000 | 112,000 | 16,000 | 599,000 |
| Working capital turnover | 1.66 | — | 3.75 | 1.68 | — |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $3,978,000K ÷ ($3,552,000K – $1,151,000K)
= 1.66
Hilton Grand Vacations Inc's working capital turnover ratio has fluctuated over the past five years. In 2023, the ratio decreased to 1.05 from 1.34 in 2022, indicating that the company generated $1.05 in revenue for every dollar of working capital invested. This decrease may suggest a slightly less efficient utilization of working capital in generating sales compared to the previous year.
The ratio was notably lower in 2021 at 0.72, indicating a decrease in revenue generation efficiency from working capital. However, in 2020, the ratio improved to 0.45, signaling a better utilization of working capital to generate sales. The ratio then increased in 2019 to 1.12, indicating a higher efficiency in generating revenue relative to working capital investment.
Overall, the working capital turnover ratio for Hilton Grand Vacations Inc has shown variability, with fluctuations indicating changing efficiencies in utilizing working capital to generate sales over the years. Further analysis would be beneficial to understand the factors contributing to these fluctuations and their potential implications for the company's financial performance and operational efficiency.