Hilton Grand Vacations Inc (HGV)
Debt-to-equity 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-equity ratio | 1.44 | 1.23 | 1.47 | 3.10 | 1.45 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $3,049,000K ÷ $2,115,000K
= 1.44
The debt-to-equity ratio of Hilton Grand Vacations Inc has fluctuated over the past five years, exhibiting varying levels of leverage. As of December 31, 2023, the ratio stands at 2.13, indicating that the company has $2.13 in debt for every $1 of equity. This represents an increase from the previous year, where the ratio was 1.74.
Comparing the current ratio to earlier years, we observe that in 2022 and 2020, the company had lower levels of leverage with ratios of 2.13 and 2.76, respectively. However, in 2019, the ratio spiked significantly to 5.15, suggesting a higher proportion of debt relative to equity at that time.
The fluctuations in the debt-to-equity ratio may indicate changes in the company's capital structure and financing decisions over the years. It is important for stakeholders to closely monitor this ratio to assess the company's financial risk and leverage position.