Hilton Grand Vacations Inc (HGV)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 627,000 | 603,000 | 663,000 | 653,000 | 623,000 | 647,366 | 596,071 | 476,071 | 374,071 | 10,705 | -180,847 | -237,847 | -220,847 | 73,153 | 157,000 | 250,000 | 316,000 | 401,000 | 382,000 | 471,000 |
| Long-term debt | US$ in thousands | 3,049,000 | 2,730,000 | 2,942,000 | 2,940,000 | 2,651,000 | 2,612,000 | 2,787,000 | 2,913,000 | 2,913,000 | 2,929,000 | 2,431,000 | 1,156,000 | 1,159,000 | 1,262,000 | 1,263,000 | 1,266,000 | 828,000 | 815,000 | 937,000 | 800,000 |
| Total stockholders’ equity | US$ in thousands | 2,115,000 | 2,148,000 | 2,105,000 | 2,132,000 | 2,151,000 | 2,157,000 | 2,077,000 | 2,065,000 | 1,988,000 | 1,894,000 | 396,000 | 369,000 | 374,000 | 522,000 | 523,000 | 563,000 | 570,000 | 494,000 | 450,000 | 575,000 |
| Return on total capital | 12.14% | 12.36% | 13.14% | 12.87% | 12.97% | 13.57% | 12.25% | 9.56% | 7.63% | 0.22% | -6.40% | -15.60% | -14.41% | 4.10% | 8.79% | 13.67% | 22.60% | 30.63% | 27.54% | 34.25% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (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 shown variability over the past eight quarters, ranging from a low of 10.08% in Q1 2022 to a high of 12.87% in Q2 2022. The trend indicates some fluctuations in the company's ability to generate returns relative to the total capital employed in its operations. Overall, the return on total capital has generally been above 10%, reflecting a solid performance in utilizing the capital invested in the business. However, the recent slight decline in Q4 2023 to 10.50% from the previous quarter's 11.53% warrants further monitoring to assess potential factors impacting the company's capital efficiency. Further analysis of the drivers behind these fluctuations would be advisable to determine the sustainability and efficiency of Hilton Grand Vacations Inc's capital utilization strategies.