Hilton Grand Vacations Inc (HGV)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 8,685,000 | 8,004,000 | 8,008,000 | 3,134,000 | 3,079,000 |
| Total stockholders’ equity | US$ in thousands | 2,115,000 | 2,151,000 | 1,988,000 | 374,000 | 570,000 |
| Financial leverage ratio | 4.11 | 3.72 | 4.03 | 8.38 | 5.40 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $8,685,000K ÷ $2,115,000K
= 4.11
The financial leverage ratio of Hilton Grand Vacations Inc has shown variability over the past five years. The ratio increased from 3.72 in 2022 to 4.11 in 2023, indicating a higher level of financial leverage. This suggests that the company is relying more on debt to finance its operations and investments compared to the previous year.
In 2021, the financial leverage ratio was 4.03, slightly lower than in 2023. However, it increased significantly in 2020 to 8.38, which could be a cause for concern as it may indicate a high level of financial risk due to excessive debt relative to equity.
The financial leverage ratio then decreased in 2019 to 5.40 but remained relatively elevated compared to recent years. Overall, the trend in the financial leverage ratio for Hilton Grand Vacations Inc suggests fluctuations in the company's capital structure and the degree of leverage used to support its business activities. Further analysis would be necessary to understand the implications of these changes on the company's financial health and risk profile.