Hilton Grand Vacations Inc (HGV)
Debt-to-equity 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-equity ratio | 2.63 | 1.44 | 1.23 | 1.47 | 3.10 |
December 31, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $4,601,000K ÷ $1,752,000K
= 2.63
Hilton Grand Vacations Inc's debt-to-equity ratio has shown a fluctuating trend over the past five years. As of December 31, 2020, the ratio stood at 3.10, indicating a higher level of debt in comparison to equity. However, there has been a significant decrease in the ratio over the subsequent years. By December 31, 2022, the ratio decreased to 1.23, suggesting a more balanced mix of debt and equity in the company's capital structure.
The ratio slightly increased to 1.44 by December 31, 2023, before experiencing a notable rise to 2.63 by December 31, 2024. This increase may indicate that the company has taken on more debt relative to equity in that year.
Overall, the decreasing trend from 2020 to 2022 followed by the fluctuation in the later years suggests that Hilton Grand Vacations Inc has been actively managing its debt levels in relation to equity. It is essential for stakeholders to monitor these changes in the debt-to-equity ratio as this ratio reflects the company's financial leverage and risk profile.