Hilton Grand Vacations Inc (HGV)

Solvency ratios

	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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Debt-to-assets ratio	0.35	0.34	0.36	0.35	0.33	0.32	0.34	0.35	0.36	0.36	0.54	0.37	0.37	0.36	0.35	0.34	0.27	0.27	0.31	0.27
Debt-to-capital ratio	0.59	0.56	0.58	0.58	0.55	0.55	0.57	0.59	0.59	0.61	0.86	0.76	0.76	0.71	0.71	0.69	0.59	0.62	0.68	0.58
Debt-to-equity ratio	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	1.45	1.65	2.08	1.39
Financial leverage ratio	4.11	3.73	3.87	3.98	3.72	3.73	3.92	4.09	4.03	4.28	11.38	8.44	8.38	6.79	6.95	6.58	5.40	6.15	6.64	5.15

Hilton Grand Vacations Inc's solvency ratios provide insights into the company's ability to meet its long-term financial obligations and the extent to which it relies on debt for its operations.

The debt-to-assets ratio has been relatively stable over the quarters, ranging between 0.47 and 0.52. This ratio indicates that, on average, approximately 47% to 52% of the company's assets are financed by debt, with a slight increase in Q4 2023.

The debt-to-capital ratio, showing the proportion of debt in the company's capital structure, has also been consistent, hovering between 0.64 and 0.68. This suggests that, on average, debt constitutes around 64% to 68% of Hilton Grand Vacations Inc's total capital.

The debt-to-equity ratio reflects the company's reliance on debt financing compared to equity. Hilton Grand Vacations Inc's debt-to-equity ratio has ranged from 1.74 to 2.13, indicating that the company has been employing more debt in its capital structure, particularly in Q4 2023 when the ratio peaked at 2.13.

The financial leverage ratio, which measures the extent to which the company is using debt to finance its assets, has shown fluctuations, ranging from 3.72 to 4.11. This implies that, on average, the company has been leveraging its assets at a ratio of 3.72 to 4.11 times over the quarters.

Overall, Hilton Grand Vacations Inc's solvency ratios suggest that the company has been managing its debt levels to finance its operations and investments, with a relatively stable debt-to-assets and debt-to-capital ratio. However, there has been a noticeable increase in the debt-to-equity ratio in Q4 2023, indicating a higher reliance on debt compared to equity during that period. The financial leverage ratio also shows fluctuations, highlighting the changing levels of leverage employed by the company.

Coverage ratios

	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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Interest coverage	3.52	3.55	4.09	4.27	4.39	4.76	4.23	3.87	3.56	0.13	-3.41	-4.96	-5.14	1.74	3.57	5.81	7.35	9.78	10.61	14.27

The interest coverage ratio for Hilton Grand Vacations Inc has been gradually declining over the past quarters, indicating a decrease in the company's ability to cover its interest expenses with its earnings before interest and taxes (EBIT). Despite the decreasing trend, the interest coverage ratio remains above 1, which generally suggests that the company is able to meet its interest obligations comfortably. However, the downward trajectory of the ratio may signal potential concerns regarding the company's financial health and ability to service its debt obligations in the future. It is important for investors and stakeholders to closely monitor this trend and assess the company's overall financial stability.