Hilton Grand Vacations Inc (HGV)
Working capital turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 4,981,000 | 4,716,000 | 4,428,000 | 4,200,000 | 3,978,000 | 3,951,000 | 4,049,000 | 3,990,000 | 3,835,000 | 3,681,000 | 3,493,000 | 2,879,000 | 2,335,000 | 1,709,000 | 989,000 | 778,000 | 894,000 | 1,150,000 | 1,408,000 | 1,739,000 |
| Total current assets | US$ in thousands | 3,868,000 | 3,955,000 | 4,174,000 | 4,260,000 | 3,552,000 | 2,797,000 | 737,000 | 892,000 | 734,000 | 823,000 | 787,000 | 961,000 | 734,000 | 612,000 | 538,000 | 511,000 | 547,000 | 734,000 | 1,107,000 | 827,000 |
| Total current liabilities | US$ in thousands | 252,000 | 1,270,000 | 1,383,000 | 1,357,000 | 1,151,000 | 1,356,000 | 1,481,000 | 1,567,000 | 1,197,000 | 118,000 | 142,000 | 159,000 | 112,000 | 170,000 | 824,000 | 710,000 | 16,000 | 644,000 | 621,000 | 662,000 |
| Working capital turnover | 1.38 | 1.76 | 1.59 | 1.45 | 1.66 | 2.74 | — | — | — | 5.22 | 5.42 | 3.59 | 3.75 | 3.87 | — | — | 1.68 | 12.78 | 2.90 | 10.54 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $4,981,000K ÷ ($3,868,000K – $252,000K)
= 1.38
The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate sales revenue. A higher ratio indicates better efficiency in managing working capital.
Based on the provided data for Hilton Grand Vacations Inc:
- The working capital turnover ratio fluctuated significantly over the periods analyzed, ranging from a high of 12.78 on September 30, 2020, to a low of 1.38 on December 31, 2024.
- The ratio was above 1 for most periods, suggesting that the company was able to generate sales revenue using its working capital.
- The ratio experienced a substantial decline from 12.78 on September 30, 2020, to 1.68 on December 31, 2020, indicating a potential inefficiency in working capital management during that time.
- The ratio remained relatively stable around 3 to 5 for the periods from June 30, 2022, to June 30, 2024, indicating a moderate efficiency in utilizing working capital.
Overall, Hilton Grand Vacations Inc's working capital turnover ratio showed fluctuations over the periods, with some periods indicating better efficiency in working capital utilization compared to others. It is important for the company to monitor and manage its working capital effectively to ensure optimal operational performance and financial stability.