Hilton Grand Vacations Inc (HGV)
Debt-to-capital ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Debt-to-capital ratio | 0.59 | 0.56 | 0.58 | 0.58 | 0.55 | 0.55 | 0.57 | 0.59 | 0.59 | 0.61 | 0.86 | 0.76 | 0.76 | 0.71 | 0.71 | 0.69 | 0.59 | 0.62 | 0.68 | 0.58 |
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 been relatively stable over the past eight quarters, fluctuating within the range of 0.64 to 0.68. This ratio indicates that, on average, the company finances around 64% to 68% of its capital structure through debt.
A debt-to-capital ratio of 0.68 in Q4 2023 suggests that the company has a higher reliance on debt compared to its capital for financing its operations and investments. However, the fluctuations within a narrow range over time indicate a consistent level of debt relative to capital structure.
It is important to note that a higher debt-to-capital ratio could indicate higher financial risk due to greater leverage, potentially resulting in higher interest expenses and vulnerability to economic downturns. On the other hand, a lower ratio could imply lower risk but may also signal missed opportunities for growth due to underutilization of debt financing. Therefore, further analysis of other financial metrics and industry benchmarks would provide a more comprehensive understanding of Hilton Grand Vacations Inc's overall financial health and risk profile.