Hilton Grand Vacations Inc (HGV)
Debt-to-capital ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| 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 |
| Debt-to-capital ratio | 0.59 | 0.55 | 0.59 | 0.76 | 0.59 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $3,049,000K ÷ ($3,049,000K + $2,115,000K)
= 0.59
The debt-to-capital ratio of Hilton Grand Vacations Inc has shown fluctuations over the past five years. In 2023, the ratio increased to 0.68 from 0.64 in the previous year. This indicates that the company's total debt as a proportion of its total capital also increased slightly. Comparing with the ratios from 2021 to 2019, the current ratio of 0.68 is at a similar level with 2021, higher than 2020, but lower than 2019.
A high debt-to-capital ratio suggests that a significant portion of the company's capital structure is funded by debt, which can indicate higher financial risk. However, it's important to consider the industry norms and the company's overall financial health before drawing any conclusions about the implications of this ratio.