Hilton Grand Vacations Inc (HGV)

Solvency ratios

	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
Debt-to-assets ratio	0.40	0.45	0.43	0.44	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
Debt-to-capital ratio	0.72	0.73	0.72	0.72	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
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
Financial leverage ratio	6.53	6.05	5.98	5.82	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

The solvency ratios for Hilton Grand Vacations Inc provide insights into the company's ability to meet its long-term financial obligations.

1. Debt-to-assets ratio: This ratio measures the proportion of the company's assets financed by debt. The trend shows a relatively stable level over the years, ranging from 0.32 to 0.54. A lower ratio indicates a lower reliance on debt for financing assets, which is generally considered favorable.

2. Debt-to-capital ratio: This ratio indicates the proportion of the company’s capital that is funded by debt. The trend fluctuates between 0.55 and 0.86, reflecting some variation in the level of debt financing over the years. A higher ratio suggests higher financial risk due to increased debt in the capital structure.

3. Debt-to-equity ratio: This ratio shows how much of the company's assets are financed through debt compared to equity. The trend varies between 1.21 and 6.14, indicating significant fluctuations in the level of leverage used by the company. A lower ratio implies a stronger financial position as it signifies less reliance on debt.

4. Financial leverage ratio: This ratio provides insight into the company's reliance on debt to finance its operations. The trend fluctuates between 3.73 and 11.38, showing changes in the company's leverage position over time. A lower ratio indicates lower financial risk, as it implies a lower reliance on debt financing.

Overall, the analysis of solvency ratios suggests that Hilton Grand Vacations Inc has managed its debt levels relatively well, with some fluctuations observed over the years. However, further examination of the company's overall financial health and cash flow position would provide a more comprehensive evaluation of its solvency.

Coverage ratios

	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
Interest coverage	2.32	2.33	2.53	2.62	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

The interest coverage ratio measures a company's ability to meet its interest obligations with its operating income. A higher ratio indicates the company is better positioned to cover its interest expenses.

Based on the data provided for Hilton Grand Vacations Inc, the interest coverage ratio fluctuated over the period. It was 5.81 as of March 31, 2020, indicating strong coverage of interest payments. However, it declined to 1.74 as of September 30, 2020, and became negative (-5.14) by December 31, 2020, suggesting that the company's operating income was insufficient to cover its interest expenses.

The trend of negative interest coverage continued into the first half of 2021, with ratios ranging from -4.96 to -3.41. This indicates significant financial stress and potential difficulties in meeting debt obligations.

However, there was a notable improvement in the latter half of 2021 and into 2022, with interest coverage ratios turning positive and ranging between 3.56 to 4.76. This improvement suggests a rebound in the company's operating performance and its ability to comfortably cover its interest payments.

As of December 31, 2024, the interest coverage ratio stood at 2.32, indicating the company's ability to cover its interest expenses with operating income. It is important for investors and creditors to monitor this ratio to assess the company's financial health and its ability to manage debt obligations effectively.