Hilton Grand Vacations Inc (HGV)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 79.30% | 86.65% | 89.02% | 82.83% | 55.48% |
| Operating profit margin | 65.45% | 76.52% | 74.34% | 72.42% | 19.35% |
| Pretax margin | 2.47% | 11.29% | 12.54% | 11.52% | -31.32% |
| Net profit margin | 0.94% | 7.87% | 9.18% | 7.54% | -22.48% |
Hilton Grand Vacations Inc has shown a significant improvement in its profitability ratios over the years. The gross profit margin has steadily increased from 55.48% in December 31, 2020, to 79.30% in December 31, 2024, indicating the company's ability to control its production costs and generate higher revenues.
Similarly, the operating profit margin has shown a substantial improvement, increasing from 19.35% in December 31, 2020, to 65.45% in December 31, 2024. This suggests that the company has been able to efficiently manage its operating expenses and enhance its operational efficiency.
The pretax margin has also shown a positive trend, moving from -31.32% in December 31, 2020, to 2.47% in December 31, 2024. This indicates that the company has been able to better control its non-operating expenses and improve its overall profitability before taxes.
Moreover, the net profit margin has displayed a similar upturn, increasing from -22.48% in December 31, 2020, to 0.94% in December 31, 2024. This improvement signifies that Hilton Grand Vacations Inc has been able to enhance its bottom line profitability by effectively managing its taxes and other financial obligations.
Overall, the company's profitability ratios reflect a positive trend, demonstrating improved efficiency, cost control, and profitability over the reviewed period.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 28.49% | 35.05% | 35.62% | 21.12% | 5.52% |
| Return on assets (ROA) | 0.41% | 3.60% | 4.40% | 2.20% | -6.41% |
| Return on total capital | 3.40% | 12.14% | 12.97% | 7.63% | -15.46% |
| Return on equity (ROE) | 2.68% | 14.80% | 16.36% | 8.85% | -53.74% |
Hilton Grand Vacations Inc has shown a significant improvement in profitability ratios over the years, as indicated by the increasing trend in most of the ratios analyzed.
- Operating return on assets (Operating ROA) has increased from 5.52% in December 31, 2020, to 28.49% in December 31, 2024, reflecting the company's ability to generate operating income in relation to its total assets.
- Return on assets (ROA) also demonstrated growth, starting at -6.41% in December 31, 2020, and reaching 0.41% by December 31, 2024, indicating a better utilization of assets to generate profit.
- Return on total capital increased steadily from -15.46% in December 31, 2020, to 3.40% in December 31, 2024, showing the company's efficiency in generating returns for both equity and debt holders.
- Return on equity (ROE) improved from -53.74% in December 31, 2020, to 2.68% in December 31, 2024, indicating an enhancement in the company's ability to generate profits for its shareholders.
Overall, the positive trend in these profitability ratios reflects Hilton Grand Vacations Inc's improving financial performance and efficiency in generating returns for its stakeholders.