Hilton Grand Vacations Inc (HGV)
Quick ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 328,000 | 297,000 | 328,000 | 355,000 | 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 |
| Short-term investments | US$ in thousands | — | — | 46,000 | 48,000 | 42,000 | 61,000 | 57,000 | 51,000 | 72,000 | 69,000 | 66,000 | 62,000 | 59,000 | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | 315,000 | 400,000 | 524,000 | 515,000 | 507,000 | 441,000 | 485,000 | 503,000 | 511,000 | 398,000 | 413,000 | 447,000 | 302,000 | 278,000 | 220,000 | 111,000 | 119,000 | 109,000 | 374,000 | 158,000 |
| Total current liabilities | US$ in thousands | 252,000 | 1,270,000 | 1,383,000 | 1,357,000 | 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 |
| Quick ratio | 2.55 | 0.55 | 0.65 | 0.68 | 0.99 | 0.54 | 0.54 | 0.60 | 0.67 | 7.56 | 6.01 | 6.43 | 7.08 | 3.60 | 0.65 | 0.72 | 34.19 | 1.14 | 1.78 | 1.25 |
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 significant fluctuations over the examined period.
The quick ratio, also known as the acid-test ratio, measures the company's ability to cover its short-term liabilities with its most liquid assets. A quick ratio above 1 indicates that the company has enough liquid assets to cover its current liabilities.
Looking at the data provided, we observe that the quick ratio ranged from a low of 0.54 on June 30, 2023, to a high of 34.19 on December 31, 2020. The ratio dipped below 1 multiple times, indicating potential liquidity concerns during those periods.
While the quick ratio improved in the following quarters, reaching levels above 6 in some instances, the ratio remained volatile. This inconsistency suggests fluctuations in the company's ability to meet its short-term obligations with its quick assets.
It's essential to monitor the trend of the quick ratio over time to assess Hilton Grand Vacations Inc's liquidity position accurately and evaluate its ability to meet upcoming liabilities with its readily available assets.