Hilton Grand Vacations Inc (HGV)
Operating profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 3,044,000 | 2,851,000 | 1,691,000 | 173,000 | 1,510,000 |
| Revenue | US$ in thousands | 3,978,000 | 3,835,000 | 2,335,000 | 894,000 | 1,838,000 |
| Operating profit margin | 76.52% | 74.34% | 72.42% | 19.35% | 82.15% |
December 31, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $3,044,000K ÷ $3,978,000K
= 76.52%
Hilton Grand Vacations Inc's operating profit margin has demonstrated variability over the past five years. In 2023, the operating profit margin decreased to 17.19%, a slight decline from the previous year's margin of 18.12%. This downward trend follows a notably high operating profit margin of 21.33% in 2021. The company experienced a significant decline in profitability in 2020, with a negative operating profit margin of -4.03%, which may reflect challenges faced during that period. However, the company was able to rebound in 2019, achieving a healthy operating profit margin of 17.14%.
Overall, Hilton Grand Vacations Inc has shown a mix of positive and negative operating profit margins in recent years. The fluctuations in the operating profit margin suggest potential changes in the company's cost structure, pricing strategies, or operational efficiency. Monitoring these trends and identifying factors contributing to the fluctuations can provide insights into the company's financial performance and management effectiveness.