Hilton Grand Vacations Inc (HGV)

Based on the liquidity ratios for Hilton Grand Vacations Inc from the provided data, we can observe the following trends:

1. Current Ratio:
The current ratio measures the company's ability to cover its short-term obligations with its current assets. Hilton Grand Vacations Inc has shown a fluctuating trend in its current ratio over the past five years, ranging from a low of 3.47 in 2022 to a high of 6.42 in 2020. The current ratio has generally been above 4, indicating that the company has a strong ability to meet its short-term liabilities with current assets.

2. Quick Ratio:
The quick ratio, also known as the acid-test ratio, provides a more conservative measure of the company's liquidity by excluding inventory from current assets. Hilton Grand Vacations Inc's quick ratio has also shown variability over the years, with a low of 0.58 in 2019 and a high of 1.48 in 2020. The quick ratio has generally been below 1, suggesting that the company may have difficulty meeting its immediate obligations without relying on inventory.

3. Cash Ratio:
The cash ratio is the most stringent measure of liquidity, focusing solely on the company's ability to cover current liabilities with cash and cash equivalents. Hilton Grand Vacations Inc's cash ratio has displayed significant fluctuations, ranging from 0.16 in 2019 to 1.16 in 2020. The cash ratio has generally been below 1, indicating that the company may have limited cash reserves relative to its short-term liabilities.

In summary, Hilton Grand Vacations Inc has maintained a strong current ratio over the years, indicating a healthy liquidity position to meet its short-term obligations. However, the trend in the quick and cash ratios suggests a fluctuating ability to cover immediate liabilities without relying on inventory or cash reserves. Further analysis and consideration of the company's cash management practices may be warranted to ensure adequate liquidity in the future.

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Additional liquidity measure

Based on the data provided for Hilton Grand Vacations Inc, the cash conversion cycle has shown significant fluctuations over the past five years. In 2023, the cash conversion cycle stands at 2,409.61 days, representing a substantial increase from the previous year's level of 1,495.60 days. This indicates that the company is taking longer to convert its investments in inventory and accounts receivable into cash.

In 2023, the cash conversion cycle is significantly higher compared to the levels seen in 2021 and 2019, where it was 2,142.03 days and 1,589.40 days, respectively. However, it is noteworthy to mention that in 2020, the cash conversion cycle spiked to a remarkably high level of 9,564.66 days, suggesting a potential issue with the company's working capital management during that period.

Overall, the trend in Hilton Grand Vacations Inc's cash conversion cycle indicates some volatility and inefficiencies in managing its cash flow from operations, inventory, and accounts receivable. It would be advisable for the company to closely monitor and improve its working capital management practices to optimize its cash conversion cycle and enhance overall liquidity and efficiency.