Hilton Grand Vacations Inc (HGV)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 216,000 | 329,000 | 387,000 | 557,000 | 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 |
| Long-term debt | US$ in thousands | 4,601,000 | 5,039,000 | 4,885,000 | 5,144,000 | 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 |
| Total stockholders’ equity | US$ in thousands | 1,752,000 | 1,845,000 | 1,918,000 | 2,004,000 | 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 |
| Return on total capital | 3.40% | 4.78% | 5.69% | 7.79% | 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% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $216,000K ÷ ($4,601,000K + $1,752,000K)
= 3.40%
Hilton Grand Vacations Inc's return on total capital fluctuated over the period from March 31, 2020, to December 31, 2024. The company's return on total capital started at 13.67% in March 2020, declined to -15.60% by March 2021, and then gradually improved to reach 12.14% by December 31, 2023. However, there was a decrease in return on total capital to 3.40% by the end of December 2024.
Overall, Hilton Grand Vacations Inc experienced varying levels of return on total capital during this period, with fluctuations reflecting changes in the company's earnings and capital employed. It is important for investors and stakeholders to monitor these trends to assess the company's efficiency in generating returns on its total capital.