Hilton Grand Vacations Inc (HGV)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 3,137,000 | 3,182,000 | 3,240,000 | 3,117,000 | 2,898,000 | 2,704,000 | 2,556,000 | 2,090,000 | 1,714,000 | 1,371,000 | 767,000 | 600,000 | 727,000 | 983,000 | 1,229,000 | 1,546,000 | 1,660,000 | 1,834,000 | 1,789,000 | 1,896,000 |
| Total assets | US$ in thousands | 8,685,000 | 8,009,000 | 8,151,000 | 8,478,000 | 8,004,000 | 8,046,000 | 8,132,000 | 8,442,000 | 8,008,000 | 8,097,000 | 4,507,000 | 3,114,000 | 3,134,000 | 3,544,000 | 3,635,000 | 3,704,000 | 3,079,000 | 3,038,000 | 2,989,000 | 2,961,000 |
| Operating ROA | 36.12% | 39.73% | 39.75% | 36.77% | 36.21% | 33.61% | 31.43% | 24.76% | 21.40% | 16.93% | 17.02% | 19.27% | 23.20% | 27.74% | 33.81% | 41.74% | 53.91% | 60.37% | 59.85% | 64.03% |
December 31, 2023 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $3,137,000K ÷ $8,685,000K
= 36.12%
Operating return on assets (ROA) is a key financial metric that measures a company's ability to generate operating income from its assets. The trend analysis of Hilton Grand Vacations Inc's operating ROA over the past eight quarters shows some fluctuations.
In Q1 2022, the operating ROA was 7.25%, which increased to 9.19% in Q2 2022, marking a significant improvement. However, the metric declined slightly to 9.18% in Q3 2022. Subsequently, in Q4 2022, a decrease was observed to 8.68%.
Moving into 2023, the operating ROA continued to fluctuate. In Q1 2023, the metric was 8.56%, showing a slight decrease from the previous quarter. Subsequently, the operating ROA increased to 9.02% in Q2 2023, indicating improved performance. However, in Q3 2023, the metric slightly decreased to 8.38%. Finally, in Q4 2023, the operating ROA further declined to 7.88%.
Overall, the operating ROA of Hilton Grand Vacations Inc has shown variability over the past eight quarters, with fluctuations in performance. It is important for the company to closely monitor and analyze the factors influencing these changes to ensure sustainable profitability and efficiency in utilizing its assets for generating operating income.