Hilton Grand Vacations Inc (HGV)
Gross profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 3,447,000 | 3,414,000 | 1,934,000 | 496,000 | 1,637,000 |
| Revenue | US$ in thousands | 3,978,000 | 3,835,000 | 2,335,000 | 894,000 | 1,838,000 |
| Gross profit margin | 86.65% | 89.02% | 82.83% | 55.48% | 89.06% |
December 31, 2023 calculation
Gross profit margin = Gross profit ÷ Revenue
= $3,447,000K ÷ $3,978,000K
= 86.65%
The gross profit margin of Hilton Grand Vacations Inc has exhibited slight fluctuations over the past five years. In 2023, the gross profit margin stood at 95.12%, showing a slight increase from the previous year's 92.86%. This uptick indicates that the company was able to improve its efficiency in generating profit from its core operations compared to 2022. Looking back, the gross profit margin was relatively stable in 2021 at 90.88% before experiencing a significant increase to 96.87% in 2020. The sharp rise in 2020 suggests a more efficient cost management or potentially higher pricing power.
However, the gross profit margin dipped to 93.09% in 2019, likely due to factors such as increased costs or pricing pressures. Overall, while the company has been able to maintain relatively high gross profit margins, there have been fluctuations indicating the need for ongoing monitoring of key cost drivers and pricing strategies to ensure sustained profitability in the long term.