Hilton Grand Vacations Inc (HGV)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.40 | 0.35 | 0.33 | 0.36 | 0.37 |
| Debt-to-capital ratio | 0.72 | 0.59 | 0.55 | 0.59 | 0.76 |
| Debt-to-equity ratio | 2.63 | 1.44 | 1.23 | 1.47 | 3.10 |
| Financial leverage ratio | 6.53 | 4.11 | 3.72 | 4.03 | 8.38 |
Hilton Grand Vacations Inc's solvency ratios reflect its ability to meet its long-term financial obligations. The Debt-to-assets ratio has shown a fluctuating trend, decreasing from 0.37 in 2020 to 0.33 in 2022 before increasing slightly to 0.40 in 2024. This indicates that the company's level of debt in relation to its total assets has been relatively stable over the years.
The Debt-to-capital ratio has exhibited a decreasing trend, falling from 0.76 in 2020 to 0.55 in 2022, before rising to 0.72 in 2024. This suggests that the proportion of debt used to finance the company's operations compared to its total capital has been decreasing overall.
The Debt-to-equity ratio also shows a declining trend, decreasing from 3.10 in 2020 to 1.23 in 2022 before increasing to 2.63 in 2024. This indicates that the company has been relying less on debt financing and more on equity financing over the years.
The Financial leverage ratio has similarly decreased from 8.38 in 2020 to 3.72 in 2022, before rising to 6.53 in 2024. This ratio reflects the company's reliance on debt to fund its operations, with a decreasing trend signaling improved financial stability.
Overall, Hilton Grand Vacations Inc's solvency ratios suggest that the company has been managing its debt levels effectively, with a mix of debt and equity financing that has become more balanced over the years.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 2.32 | 3.52 | 4.39 | 3.56 | -5.51 |
The interest coverage ratio, which indicates a company's ability to meet its interest obligations, for Hilton Grand Vacations Inc has shown fluctuating trends over the past few years.
As of December 31, 2020, the interest coverage ratio was negative, indicating that the company's operating income was insufficient to cover its interest expenses. However, this improved significantly by December 31, 2021, reaching a ratio of 3.56, which suggests the company's operating income was more than sufficient to cover its interest payments.
Subsequently, the interest coverage ratio continued to improve, reaching 4.39 by December 31, 2022, indicating a further strengthening of the company's ability to meet its interest obligations. However, by December 31, 2023, the ratio declined slightly to 3.52, possibly due to changes in operating income or interest expenses.
The most recent data as of December 31, 2024, shows a further decrease in the interest coverage ratio to 2.32, which could indicate a potential strain on the company's ability to cover its interest payments with its operating income.
In conclusion, while there have been fluctuations in Hilton Grand Vacations Inc's interest coverage ratio over the years, the company has generally shown an improving trend in its ability to meet its interest obligations, except for the most recent period where there was a decrease in the ratio. A declining interest coverage ratio could be a cause for concern and may warrant further analysis of the company's financial health.