Hilton Grand Vacations Inc (HGV)
Debt-to-equity ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 4,601,000 | 5,039,000 | 4,885,000 | 5,144,000 | 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 |
| Total stockholders’ equity | US$ in thousands | 1,752,000 | 1,845,000 | 1,918,000 | 2,004,000 | 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 |
| Debt-to-equity ratio | 2.63 | 2.73 | 2.55 | 2.57 | 1.44 | 1.27 | 1.40 | 1.38 | 1.23 | 1.21 | 1.34 | 1.41 | 1.47 | 1.55 | 6.14 | 3.13 | 3.10 | 2.42 | 2.41 | 2.25 |
December 31, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $4,601,000K ÷ $1,752,000K
= 2.63
The debt-to-equity ratio of Hilton Grand Vacations Inc has shown significant fluctuations over the period from March 31, 2020, to December 31, 2024. At the end of March 2020, the ratio stood at 2.25, indicating a higher reliance on debt to fund its operations compared to equity. This ratio increased further to 3.10 by the end of December 2020, reaching a peak of 6.14 by June 30, 2021.
However, in the subsequent quarters, there was a notable decrease in the debt-to-equity ratio. By the end of December 2021, the ratio dropped to 1.47, and it continued to decline into the first half of 2022, reaching 1.34 by June 30, 2022. The trend of decreasing leverage continued into September 2022, with the ratio reaching 1.21, indicating a lower reliance on debt financing.
Throughout 2023, the debt-to-equity ratio of Hilton Grand Vacations Inc fluctuated between 1.27 and 1.44, showing relative stability in its capital structure. However, by the end of December 31, 2024, the ratio increased to 2.63, signifying a slight uptick in leverage.
In conclusion, Hilton Grand Vacations Inc has experienced fluctuations in its debt-to-equity ratio over the years, with periods of high leverage followed by reductions in debt reliance. It is essential to monitor this ratio to assess the company's financial risk and capital structure moving forward.