Hilton Grand Vacations Inc (HGV)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 3,260,000 | 3,044,000 | 2,851,000 | 1,691,000 | 173,000 |
| Total assets | US$ in thousands | 11,442,000 | 8,685,000 | 8,004,000 | 8,008,000 | 3,134,000 |
| Operating ROA | 28.49% | 35.05% | 35.62% | 21.12% | 5.52% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $3,260,000K ÷ $11,442,000K
= 28.49%
Hilton Grand Vacations Inc's operating return on assets (ROA) has shown a significant improvement over the past five years. Starting at 5.52% on December 31, 2020, the company's operating ROA increased to 21.12% by December 31, 2021. This upward trend continued over the subsequent years, reaching 35.62% by December 31, 2022. Although there was a slight decrease to 35.05% by December 31, 2023, the operating ROA remained relatively high. By December 31, 2024, the operating ROA was recorded at 28.49%, indicating a solid performance in utilizing its assets to generate operating profits. Overall, the trend suggests that Hilton Grand Vacations Inc has been effectively managing its assets to generate operating income, with the operating ROA showing a strong and improving performance over the period under review.