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Hilton Grand Vacations (Hilton Grand Vacations) ROE % : 12.76% (As of Dec. 2023)


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What is Hilton Grand Vacations ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Hilton Grand Vacations's annualized net income for the quarter that ended in Dec. 2023 was $272 Mil. Hilton Grand Vacations's average Total Stockholders Equity over the quarter that ended in Dec. 2023 was $2,132 Mil. Therefore, Hilton Grand Vacations's annualized ROE % for the quarter that ended in Dec. 2023 was 12.76%.

The historical rank and industry rank for Hilton Grand Vacations's ROE % or its related term are showing as below:

HGV' s ROE % Range Over the Past 10 Years
Min: -42.58   Med: 44.49   Max: Negative Equity
Current: 14.69

During the past 11 years, Hilton Grand Vacations's highest ROE % was Negative Equity%. The lowest was -42.58%. And the median was 44.49%.

HGV's ROE % is ranked better than
72.23% of 785 companies
in the Travel & Leisure industry
Industry Median: 5.96 vs HGV: 14.69

Hilton Grand Vacations ROE % Historical Data

The historical data trend for Hilton Grand Vacations's ROE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Hilton Grand Vacations ROE % Chart

Hilton Grand Vacations Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 36.42 -42.58 14.90 17.01 14.67

Hilton Grand Vacations Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
ROE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 14.48 13.64 15.11 17.31 12.76

Competitive Comparison of Hilton Grand Vacations's ROE %

For the Resorts & Casinos subindustry, Hilton Grand Vacations's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Hilton Grand Vacations's ROE % Distribution in the Travel & Leisure Industry

For the Travel & Leisure industry and Consumer Cyclical sector, Hilton Grand Vacations's ROE % distribution charts can be found below:

* The bar in red indicates where Hilton Grand Vacations's ROE % falls into.



Hilton Grand Vacations ROE % Calculation

Hilton Grand Vacations's annualized ROE % for the fiscal year that ended in Dec. 2023 is calculated as

ROE %=Net Income (A: Dec. 2023 )/( (Total Stockholders Equity (A: Dec. 2022 )+Total Stockholders Equity (A: Dec. 2023 ))/ count )
=313/( (2151+2115)/ 2 )
=313/2133
=14.67 %

Hilton Grand Vacations's annualized ROE % for the quarter that ended in Dec. 2023 is calculated as

ROE %=Net Income (Q: Dec. 2023 )/( (Total Stockholders Equity (Q: Sep. 2023 )+Total Stockholders Equity (Q: Dec. 2023 ))/ count )
=272/( (2148+2115)/ 2 )
=272/2131.5
=12.76 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is four times the quarterly (Dec. 2023) net income data. ROE % is displayed in the 30-year financial page.


Hilton Grand Vacations  (NYSE:HGV) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %(Q: Dec. 2023 )
=Net Income/Total Stockholders Equity
=272/2131.5
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(272 / 4076)*(4076 / 8347)*(8347 / 2131.5)
=Net Margin %*Asset Turnover*Equity Multiplier
=6.67 %*0.4883*3.916
=ROA %*Equity Multiplier
=3.26 %*3.916
=12.76 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Dec. 2023 )
=Net Income/Total Stockholders Equity
=272/2131.5
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (272 / 432) * (432 / 700) * (700 / 4076) * (4076 / 8347) * (8347 / 2131.5)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.6296 * 0.6171 * 17.17 % * 0.4883 * 3.916
=12.76 %

Note: The net income data used here is four times the quarterly (Dec. 2023) net income data. The Revenue data used here is four times the quarterly (Dec. 2023) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Net Income is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.


Hilton Grand Vacations ROE % Related Terms

Thank you for viewing the detailed overview of Hilton Grand Vacations's ROE % provided by GuruFocus.com. Please click on the following links to see related term pages.


Hilton Grand Vacations (Hilton Grand Vacations) Business Description

Traded in Other Exchanges
Address
6355 MetroWest Boulevard, Suite 180, Orlando, FL, USA, 32835
Hilton Grand Vacations Inc is a timeshare company engaged in developing, marketing, selling, managing and operating timeshare resorts, timeshare plans and ancillary reservation services, under the Hilton Grand Vacations brand. The company operates business in the following two segments: (i) Real estate sales and financing and (ii) Resort operations and club management. The majority of the company's revenue is earned through the Resort operations and club management segment.
Executives
Carlos Hernandez officer: See Remarks 5323 MILLENIA LAKES BOULEVARD, SUITE 120, ORLANDO FL 32839
Mark D Wang director, officer: See Remarks 5323 MILLENIA LAKES BLVD, ORLANDO FL 32801
Gordon Gurnik officer: See Remarks C/O WYNDHAM WORLDWIDE CORPORATION, 22 SYLVAN WAY, PARSIPPANY NJ 07054
Daniel Jason Mathewes officer: See Remarks 5323 MILLENIA LAKES BLVD., SUITE 400, ORLANDO FL 32839
Corbin Charles R. Jr. officer: EVP & General Counsel C/O HILTON GRAND VACATIONS INC., 6355 METROWEST BOULEVARD, SUITE 180, ORLANDO FL 32835
Jorge Pablo Brizi officer: See Remarks 5323 MILLENIA LAKES BOULEVARD, SUITE120, ORLANDO FL 32839
Apollo Principal Holdings Iii Gp Ltd 10 percent owner C/O INTERTRUST CORPORATE SERVICES, (CAYMAN) LIMITED, 190 ELGIN STREET, GEORGE TOWN E9 KY1-9005
Ap Viii Dakota Holdings, L.p. 10 percent owner ONE MANHATTANVILLE ROAD, SUITE 201, PURCHASE NY 10577
Ap Dakota Co-invest Gp, Llc 10 percent owner ONE MANHATTANVILLE ROAD, SUITE 201, PURCHASE NY 10577
Hoek Alex Van director APOLLO GLOBAL MANAGEMENT INC., 9 WEST 57TH STREET, 43RD FLOOR, NEW YORK NY 100019
Apollo Capital Management Viii, Llc 10 percent owner ONE MANHATTANVILLE ROAD, SUITE 201, PURCHASE NY 10577
Apollo Advisors Viii, L.p. 10 percent owner ONE MANHATTANVILLE ROAD, SUITE 201, PURCHASE NY 10577
Aph Holdings, L.p. 10 percent owner ONE MANHATTANVILLE ROAD, SUITE 201, PURCHASE NY 10577
David Sambur director 9 W. 57TH STREET, 43RD FLOOR, NEW YORK NY 10019
Sherri A Silver officer: EVP & Chief Marketing Officer 100 ERIE INSURANCE PLACE, ERIE PA 16530