Hilton Grand Vacations Inc (HGV)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 47,000 | 313,000 | 352,000 | 176,000 | -201,000 |
| Total assets | US$ in thousands | 11,442,000 | 8,685,000 | 8,004,000 | 8,008,000 | 3,134,000 |
| ROA | 0.41% | 3.60% | 4.40% | 2.20% | -6.41% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $47,000K ÷ $11,442,000K
= 0.41%
Hilton Grand Vacations Inc's return on assets (ROA) has shown a fluctuating trend over the past five years. In December 2020, the ROA was -6.41%, indicating that the company generated a negative return on its assets during that period. However, there has been a positive turnaround since then, with the ROA improving to 2.20% in December 2021, 4.40% in December 2022, and 3.60% in December 2023.
Despite the improvements in the ROA over the past few years, there was a slight decline in performance in December 2024, with the ROA decreasing to 0.41%. This could suggest a potential challenge in generating returns relative to the level of assets employed by the company during that period.
Overall, the varying ROA figures indicate that Hilton Grand Vacations Inc's ability to generate profits from its assets has shown both positive and negative fluctuations in recent years. It is essential for the company to continue monitoring and optimizing its asset utilization to sustain and enhance profitability in the future.