Hilton Grand Vacations Inc (HGV)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 328,000 | 589,000 | 223,000 | 432,000 | 428,000 |
| Short-term investments | US$ in thousands | — | 42,000 | 72,000 | 2,000 | — |
| Total current liabilities | US$ in thousands | 252,000 | 1,142,000 | 1,197,000 | 112,000 | 16,000 |
| Cash ratio | 1.30 | 0.55 | 0.25 | 3.88 | 26.75 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($328,000K
+ $—K)
÷ $252,000K
= 1.30
The cash ratio of Hilton Grand Vacations Inc has seen a significant decline over the years, dropping from 26.75 on December 31, 2020, to 3.88 on December 31, 2021, and further down to 0.25 on December 31, 2022. The ratio then slightly improved to 0.55 on December 31, 2023, and further increased to 1.30 on December 31, 2024.
This decreasing trend in the cash ratio indicates that the company may be struggling to maintain sufficient liquid assets to cover its short-term obligations. The sudden decrease in 2022 could indicate potential cash flow challenges or mismanagement of cash resources. However, the subsequent improvements in 2023 and 2024 may suggest that the company has implemented strategies to strengthen its liquidity position.
It is essential for Hilton Grand Vacations Inc to closely monitor its cash reserves and manage its working capital effectively to ensure it can meet its financial commitments in a timely manner and support its ongoing operations.