Hilton Grand Vacations Inc (HGV)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 11,442,000 | 8,685,000 | 8,004,000 | 8,008,000 | 3,134,000 |
| Total stockholders’ equity | US$ in thousands | 1,752,000 | 2,115,000 | 2,151,000 | 1,988,000 | 374,000 |
| Financial leverage ratio | 6.53 | 4.11 | 3.72 | 4.03 | 8.38 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $11,442,000K ÷ $1,752,000K
= 6.53
The financial leverage ratio of Hilton Grand Vacations Inc has shown a decreasing trend over the past five years, indicating a reduction in the company's reliance on debt to finance its operations and investments. In particular, the ratio decreased from 8.38 in December 2020 to 4.03 in December 2021, further declining to 3.72 in December 2022, and then slightly increased to 4.11 in December 2023 before rising to 6.53 in December 2024. This fluctuation suggests that the company may have adjusted its capital structure during this period, possibly aiming to optimize its financial risk and cost of capital. Overall, the declining trend in the financial leverage ratio implies a more conservative approach to debt management by Hilton Grand Vacations Inc.