Hilton Grand Vacations Inc (HGV)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 627,000 | 623,000 | 374,000 | -237,000 | 316,000 |
| Long-term debt | US$ in thousands | 3,049,000 | 2,651,000 | 2,913,000 | 1,159,000 | 828,000 |
| Total stockholders’ equity | US$ in thousands | 2,115,000 | 2,151,000 | 1,988,000 | 374,000 | 570,000 |
| Return on total capital | 12.14% | 12.97% | 7.63% | -15.46% | 22.60% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $627,000K ÷ ($3,049,000K + $2,115,000K)
= 12.14%
Hilton Grand Vacations Inc's return on total capital has fluctuated over the past five years, ranging from -1.35% in 2020 to a high of 14.87% in 2019. The return on total capital decreased in 2021 to 8.16% before rebounding to 11.99% in 2022. In 2023, the return on total capital was 10.50%, indicating a moderate decrease compared to the previous year. These variations suggest that Hilton Grand Vacations Inc's efficiency in generating returns from its total capital has been inconsistent, with both positive and negative trends observed in recent years. Further analysis of the company's financial performance and strategies may be necessary to understand the factors influencing these fluctuations in return on total capital.