Hilton Grand Vacations Inc (HGV)
Gross profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 3,950,000 | 3,447,000 | 3,414,000 | 1,934,000 | 496,000 |
| Revenue | US$ in thousands | 4,981,000 | 3,978,000 | 3,835,000 | 2,335,000 | 894,000 |
| Gross profit margin | 79.30% | 86.65% | 89.02% | 82.83% | 55.48% |
December 31, 2024 calculation
Gross profit margin = Gross profit ÷ Revenue
= $3,950,000K ÷ $4,981,000K
= 79.30%
Based on the data provided, the gross profit margin of Hilton Grand Vacations Inc has shown a positive trend over the years.
- In December 2020, the gross profit margin stood at 55.48%, indicating that the company was generating a gross profit of approximately 55.48 cents for every dollar of revenue.
- By December 2021, the gross profit margin had significantly increased to 82.83%, suggesting improved efficiency in managing production costs and higher profitability.
- The trend continued to rise in December 2022, reaching 89.02%, reflecting strong control over direct costs associated with the production of goods or services.
- In December 2023, the gross profit margin slightly decreased to 86.65%, but remained at a relatively high level, indicating sustained profitability.
- However, by December 2024, the gross profit margin had decreased to 79.30%, though it still remained above the level in the initial year of analysis.
Overall, the increasing trend in the gross profit margin of Hilton Grand Vacations Inc signifies improved profitability and operational efficiency over the years, despite a slight decline in the most recent year. It is essential for the company to continue monitoring and managing its production costs to sustain and enhance its profitability levels.