Hilton Grand Vacations Inc (HGV)
Debt-to-capital ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 4,601,000 | 3,049,000 | 2,651,000 | 2,913,000 | 1,159,000 |
| Total stockholders’ equity | US$ in thousands | 1,752,000 | 2,115,000 | 2,151,000 | 1,988,000 | 374,000 |
| Debt-to-capital ratio | 0.72 | 0.59 | 0.55 | 0.59 | 0.76 |
December 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $4,601,000K ÷ ($4,601,000K + $1,752,000K)
= 0.72
The debt-to-capital ratio of Hilton Grand Vacations Inc has shown a decreasing trend over the years, declining from 0.76 as of December 31, 2020, to 0.59 as of December 31, 2021, further dropping to 0.55 by the end of December 31, 2022. However, there was a slight increase to 0.59 by December 31, 2023, followed by a rise to 0.72 as of December 31, 2024.
This ratio indicates the proportion of the company's capital that is financed through debt, with lower values typically suggesting lower financial risk and less reliance on debt for funding operations. The initial decline in the ratio suggests a reduction in debt relative to the company's total capital structure, potentially indicating improved financial stability. However, the subsequent increase in 2024 may warrant further analysis to understand the factors driving this change and assess the implications for the company's financial health and risk profile.