Hilton Grand Vacations Inc (HGV)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | 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 | — |
| Receivables | US$ in thousands | 315,000 | 507,000 | 511,000 | 302,000 | 119,000 |
| Total current liabilities | US$ in thousands | 252,000 | 1,142,000 | 1,197,000 | 112,000 | 16,000 |
| Quick ratio | 2.55 | 1.00 | 0.67 | 6.57 | 34.19 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($328,000K
+ $—K
+ $315,000K)
÷ $252,000K
= 2.55
The quick ratio of Hilton Grand Vacations Inc has shown a significant decline over the years. As of December 31, 2020, the quick ratio was at a high level of 34.19, indicating a strong ability to meet its short-term obligations with its most liquid assets. However, this ratio decreased substantially to 6.57 by December 31, 2021, signaling a potential weakening of the company's liquidity position.
By December 31, 2022, the quick ratio fell sharply to 0.67, suggesting a potential liquidity challenge as the company may struggle to meet its short-term financial obligations with its current liquid assets. However, the quick ratio improved to 1.00 by December 31, 2023, indicating a slight recovery in the liquidity position.
As of December 31, 2024, the quick ratio further improved to 2.55, demonstrating a better ability to cover short-term liabilities with liquid assets compared to the previous year. Overall, the fluctuation in the quick ratio of Hilton Grand Vacations Inc reflects changes in the company's liquidity position over the analyzed period.