Hilton Grand Vacations Inc (HGV)
Pretax margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 123,000 | 449,000 | 481,000 | 269,000 | -280,000 |
| Revenue | US$ in thousands | 4,981,000 | 3,978,000 | 3,835,000 | 2,335,000 | 894,000 |
| Pretax margin | 2.47% | 11.29% | 12.54% | 11.52% | -31.32% |
December 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $123,000K ÷ $4,981,000K
= 2.47%
Hilton Grand Vacations Inc's pretax margin has shown variability over the past five years. The pretax margin was negative at -31.32% on December 31, 2020, indicating that the company incurred losses before taxes during that period. However, the company made a significant improvement in its pretax margin performance in the subsequent years. On December 31, 2021, the pretax margin improved to 11.52%, reflecting a turnaround in profitability.
In 2022, the pretax margin continued to strengthen, reaching 12.54%, indicating efficient cost management and increased revenue generation. Although there was a slight decline in the pretax margin to 11.29% on December 31, 2023, the company maintained a double-digit margin, which is generally considered healthy.
However, on December 31, 2024, the pretax margin decreased notably to 2.47%, which could be a cause for concern as it indicates a significant reduction in profitability compared to the previous year. It is essential for Hilton Grand Vacations Inc to analyze the factors contributing to this decline and take appropriate measures to improve its pretax margin in the upcoming period.