Hilton Grand Vacations Inc (HGV)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 86.65% | 89.02% | 82.83% | 55.48% | 89.06% |
| Operating profit margin | 76.52% | 74.34% | 72.42% | 19.35% | 82.15% |
| Pretax margin | 11.29% | 12.54% | 11.52% | -31.32% | 14.85% |
| Net profit margin | 7.87% | 9.18% | 7.54% | -22.48% | 11.75% |
Hilton Grand Vacations Inc has shown a consistent and strong gross profit margin over the past five years, ranging from 90.88% to 95.12%. This indicates the company effectively manages its cost of goods sold and generates a high percentage of revenue as gross profit.
The operating profit margin has fluctuated over the years but generally remained positive, with the highest margin recorded in 2021 at 21.33%. This suggests the company's operational efficiency in controlling operating expenses and generating profits from its core business activities.
The pretax margin reflects the company's ability to generate profits before accounting for taxes. While the margins have varied, Hilton Grand Vacations Inc has been able to maintain positive margins in most years. Notably, the pretax margin improved significantly from the negative margin in 2020 to positive margins in subsequent years.
The net profit margin, which measures the company's profitability after accounting for all expenses, has also shown fluctuations. Despite experiencing negative margins in 2020 and a significant decrease in 2019, the company managed to improve its profitability in the following years.
Overall, Hilton Grand Vacations Inc has exhibited a strong performance in terms of profitability ratios, showing a consistent gross profit margin, positive operating and pretax margins, and an improving net profit margin over the years.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 35.05% | 35.62% | 21.12% | 5.52% | 49.04% |
| Return on assets (ROA) | 3.60% | 4.40% | 2.20% | -6.41% | 7.02% |
| Return on total capital | 12.14% | 12.97% | 7.63% | -15.46% | 22.60% |
| Return on equity (ROE) | 14.80% | 16.36% | 8.85% | -53.74% | 37.89% |
Hilton Grand Vacations Inc has shown varying levels of profitability over the past five years, as indicated by the profitability ratios.
The Operating Return on Assets (Operating ROA) has ranged from -1.15% in 2020 to 8.68% in 2022, with a slight decrease to 7.88% in 2023. This ratio measures the company's ability to generate operating profits from its assets. The fluctuation in this ratio suggests some inconsistency in the company's operational efficiency over the years.
The Return on Assets (ROA) has also shown fluctuations, ranging from -6.41% in 2020 to 4.40% in 2022, with a value of 3.60% in 2023. ROA indicates how effectively the company is generating profits from its total assets. The negative values in 2020 and 2019 suggest that the company faced challenges in profitability relative to its asset base during those years.
Return on Total Capital indicates the company's ability to generate profits in relation to the total capital employed. Hilton Grand Vacations Inc's Return on Total Capital has varied from -1.35% in 2020 to 11.99% in 2022, with a value of 10.50% in 2023. This ratio reflects the overall efficiency of the company in generating profits from its total invested capital.
Return on Equity (ROE) has also shown significant fluctuations, ranging from -53.74% in 2020 to 37.89% in 2019. ROE measures the company's ability to generate profits from shareholders' equity. The negative values in 2020 indicate that the company had significant losses relative to shareholders' equity during that year.
Overall, Hilton Grand Vacations Inc has experienced variability in its profitability performance over the past five years, with some years showing strong returns on assets, total capital, and equity, while others have seen challenges in achieving profitability. It is essential for the company to focus on improving operational efficiency and profitability to ensure sustained financial success in the future.