Hilton Grand Vacations Inc (HGV)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 589,000 | 223,000 | 432,000 | 428,000 | 67,000 |
| Short-term investments | US$ in thousands | — | 72,000 | 2,000 | — | — |
| Receivables | US$ in thousands | 507,000 | 511,000 | 302,000 | 119,000 | 174,000 |
| Total current liabilities | US$ in thousands | 1,151,000 | 1,197,000 | 112,000 | 16,000 | 599,000 |
| Quick ratio | 0.95 | 0.67 | 6.57 | 34.19 | 0.40 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($589,000K
+ $—K
+ $507,000K)
÷ $1,151,000K
= 0.95
The quick ratio of Hilton Grand Vacations Inc has shown fluctuation over the past five years. In 2023, the quick ratio improved to 0.97 from 0.65 in 2022, indicating the company's ability to meet its short-term obligations with its most liquid assets. However, it is important to note that the quick ratio was lower in 2023 compared to 2020, when it stood at 1.48, suggesting a potential decrease in liquidity levels.
Overall, the quick ratio of Hilton Grand Vacations Inc has demonstrated variability, which may indicate fluctuations in the company's ability to quickly cover its immediate liabilities with its current assets. It is essential for stakeholders to closely monitor the trend of this ratio to assess the company's short-term liquidity position effectively.