Hilton Grand Vacations Inc (HGV)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 3,552,000 | 734,000 | 734,000 | 547,000 | 241,000 |
| Total current liabilities | US$ in thousands | 1,151,000 | 1,197,000 | 112,000 | 16,000 | 599,000 |
| Current ratio | 3.09 | 0.61 | 6.55 | 34.19 | 0.40 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $3,552,000K ÷ $1,151,000K
= 3.09
The current ratio of Hilton Grand Vacations Inc has been fluctuating over the past five years. As of December 31, 2023, the current ratio stands at 4.34, indicating that the company has $4.34 in current assets for every $1 in current liabilities.
Comparing this to the previous years, we observe a decreasing trend from 2020 to 2022, where the current ratio dropped from 6.42 to 3.47, signaling a potential liquidity concern. However, in 2023, the current ratio improved to 4.34, showing a stronger position in terms of short-term liquidity compared to the previous year.
Despite the fluctuations, the company's current ratio remains above 1, indicating that Hilton Grand Vacations Inc is able to meet its short-term obligations with its current assets, albeit at varying levels of efficiency. It is essential for the company to closely monitor its current ratio to ensure a healthy balance between current assets and liabilities for continued financial stability.