Hilton Grand Vacations Inc (HGV)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 3,868,000 | 3,552,000 | 734,000 | 734,000 | 547,000 |
| Total current liabilities | US$ in thousands | 252,000 | 1,142,000 | 1,197,000 | 112,000 | 16,000 |
| Current ratio | 15.35 | 3.11 | 0.61 | 6.55 | 34.19 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $3,868,000K ÷ $252,000K
= 15.35
The current ratio of Hilton Grand Vacations Inc has shown fluctuations over the past five years. As of December 31, 2020, the company had a very high current ratio of 34.19, indicating a strong ability to cover its short-term liabilities with current assets. However, by December 31, 2022, the current ratio had dropped significantly to 0.61, suggesting potential liquidity challenges or an imbalance in the company's current asset and liability mix.
Subsequently, there was an improvement in the current ratio to 3.11 by December 31, 2023, indicating a better position in meeting short-term obligations. The ratio further increased to 15.35 by December 31, 2024, signaling a substantial improvement in liquidity and the company's ability to cover its short-term debts comfortably.
Overall, the current ratio trend of Hilton Grand Vacations Inc reflects varying levels of liquidity and financial health over the years, with significant fluctuations and improvements observed. It is essential for investors and stakeholders to closely monitor these changes to assess the company's short-term financial strength and stability.