Hilton Grand Vacations Inc (HGV)
Cash ratio
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 589,000 | 227,000 | 252,000 | 389,000 | 223,000 | 425,000 | 374,000 | 514,000 | 432,000 | 334,000 | 318,000 | 400,000 | 428,000 | 625,000 | 733,000 | 669,000 | 67,000 | 113,000 | 120,000 | 158,000 |
| Short-term investments | US$ in thousands | — | 61,000 | 57,000 | 51,000 | 72,000 | 69,000 | 66,000 | 62,000 | 59,000 | — | — | — | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 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 | 599,000 | 620,000 | 583,000 | 527,000 |
| Cash ratio | 0.51 | 0.21 | 0.21 | 0.28 | 0.25 | 4.19 | 3.10 | 3.62 | 4.38 | 1.96 | 0.39 | 0.56 | 26.75 | 0.97 | 1.18 | 1.01 | 0.11 | 0.18 | 0.21 | 0.30 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($589,000K
+ $—K)
÷ $1,151,000K
= 0.51
The cash ratio of Hilton Grand Vacations Inc has fluctuated over the recent quarters, ranging from 0.19 to 0.52. The cash ratio measures the company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger ability to cover short-term obligations.
In Q4 2023, the cash ratio stood at 0.52, showing an improvement compared to the previous quarter. This suggests that Hilton Grand Vacations had more cash on hand relative to its current liabilities, potentially indicating better liquidity and financial stability.
However, the cash ratio decreased in Q3 2023 to 0.20, indicating a lower ability to cover short-term obligations with available cash. This could raise concerns about the company's liquidity position during that period.
Overall, while the cash ratio has shown some fluctuations, it is essential for stakeholders to assess Hilton Grand Vacations' trend in managing its cash resources effectively to meet its short-term financial obligations.