Hilton Grand Vacations Inc (HGV)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 8,685,000 | 8,004,000 | 8,008,000 | 3,134,000 | 3,079,000 |
| Operating ROA | 35.05% | 35.62% | 21.12% | 5.52% | 49.04% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $3,044,000K ÷ $8,685,000K
= 35.05%
Hilton Grand Vacations Inc's operating return on assets (ROA) has varied over the past five years. In 2023, the operating ROA was 7.88%, showing a slight decrease from 8.68% in 2022. This suggests that the company's ability to generate operating profits from its assets declined slightly from the previous year.
Comparing to 2021, where the operating ROA was 6.22%, there was an improvement in 2023. Despite this, the operating ROA in 2023 was still lower than the 10.23% recorded in 2019, indicating a decline in profitability over the past few years.
It is worth noting that in 2020, Hilton Grand Vacations Inc experienced a negative operating ROA of -1.15%, signaling that the company generated operating losses from its assets in that year.
In conclusion, Hilton Grand Vacations Inc's operating ROA has been somewhat inconsistent over the years, with fluctuations indicating changes in the company's operational efficiency and profitability. Further analysis of the underlying factors contributing to these fluctuations would be necessary to fully understand the company's financial performance.