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HGV (Hilton Grand Vacations) Altman Z2-Score : 3.52 (As of Dec. 13, 2024)


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What is Hilton Grand Vacations Altman Z2-Score?

Altman Z2-Score, also known as Z"-Score, is used to predict the likelihood that a non-manufacturing company (excluding property/financial company) will face bankruptcy within a two-year period.

Good Sign:

Hilton Grand Vacations has a Altman Z2-Score of 3.52, indicating it is in Safe Zones. This implies the Altman Z2-Score is strong.

The zones of discrimination were as such:

When Altman Z2-Score <= 1.1, it is in Distress Zones.
When Altman Z2-Score >= 2.6, it is in Safe Zones.
When Altman Z2-Score is between 1.1 and 2.6, it is in Grey Zones.

The historical rank and industry rank for Hilton Grand Vacations's Altman Z2-Score or its related term are showing as below:

HGV' s Altman Z2-Score Range Over the Past 10 Years
Min: 2.98   Med: 4.77   Max: 6.16
Current: 3.52

During the past 11 years, Hilton Grand Vacations's highest Altman Z2-Score was 6.16. The lowest was 2.98. And the median was 4.77.


Hilton Grand Vacations Altman Z2-Score Historical Data

The historical data trend for Hilton Grand Vacations's Altman Z2-Score 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 Altman Z2-Score Chart

Hilton Grand Vacations Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Altman Z2-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 4.81 3.83 3.51 3.57 3.99

Hilton Grand Vacations Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Altman Z2-Score 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 3.53 3.99 3.20 3.24 3.52

Competitive Comparison of Hilton Grand Vacations's Altman Z2-Score

For the Resorts & Casinos subindustry, Hilton Grand Vacations's Altman Z2-Score, along with its competitors' market caps and Altman Z2-Score 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 Altman Z2-Score Distribution in the Travel & Leisure Industry

For the Travel & Leisure industry and Consumer Cyclical sector, Hilton Grand Vacations's Altman Z2-Score distribution charts can be found below:

* The bar in red indicates where Hilton Grand Vacations's Altman Z2-Score falls into.



Hilton Grand Vacations Altman Z2-Score Calculation

Altman Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

Z2-Score, also known as Z"-Score is the Z-Score for non-manufacturing companies excluding property/financial companies.

Hilton Grand Vacations's Altman Z2-Score for today is calculated with this formula:

Z=6.56*X1+3.26*X2+6.72*X3+1.05*X4_2
=6.56*0.4414+3.26*0.0371+6.72*0.0439+1.05*0.2013
=3.52

* 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. GuruFocus does not calculate Altman Z2-Score when X4_2 value is 0.

Trailing Twelve Months (TTM) ended in Sep. 2024:
Total Assets was $11,154 Mil.
Total Current Assets was $6,193 Mil.
Total Current Liabilities was $1,270 Mil.
Retained Earnings was $414 Mil.
Pre-Tax Income was 93 + 7 + -13 + 108 = $195 Mil.
Interest Expense was -84 + -87 + -79 + -45 = $-295 Mil.
Total Liabilities was $9,167 Mil.

* Note that for stock reported semi-annually or annually, GuruFocus uses latest annual data as the TTM data.

X1=Working Capital/Total Assets
=(Total Current Assets - Total Current Liabilities)/Total Assets
=(6193 - 1270)/11154
=0.4414

X2=Retained Earnings/Total Assets
=414/11154
=0.0371

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(195 - -295)/11154
=0.0439

X4_2=Net Worth/Total Liabilities
=(Total Stockholders Equity - Preferred Stock)/Total Liabilities
=(1845 - 0)/9167
=0.2013

The zones of discrimination were as such:

Distress Zones - 1.1 < Grey Zones < 2.6 - Safe Zones

Hilton Grand Vacations has a Altman Z2-Score of 3.52 indicating it is in Safe Zones.


Hilton Grand Vacations  (NYSE:HGV) Altman Z2-Score Explanation

The original Z-Score model was based on publicly traded manufacturing companies while the Z2-Score, also known as Z"-score can be used for any type of company excluding property/financial companies. Both Z-Score and Z2-Score describes the financial health of a company, and its likelihood of financial distress.

X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.

X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.

X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firm's assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.

X4_2, Net Worth (Total Stockholders Equity - Preferred Stock)/Total Liabilities (NW/TL): it compares a company’s stock net worth with its total liabilities and can be used to assess the extent of its reliance on debt.

Read more about Altman Z2-Score, the original research on Z-Score and the additional research on Z2-Score.


Be Aware

Altman Z2-Score does not apply to financial companies.


Hilton Grand Vacations Altman Z2-Score Related Terms

Thank you for viewing the detailed overview of Hilton Grand Vacations's Altman Z2-Score provided by GuruFocus.com. Please click on the following links to see related term pages.


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 Real estate sales and financing segment, which generates revenue from VOI sales, and Financing.
Executives
Apollo Principal Holdings Iii Gp Ltd 10 percent owner C/O INTERTRUST CORPORATE SERVICES, (CAYMAN) LIMITED, 190 ELGIN STREET, GEORGE TOWN E9 KY1-9005
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
Carlos Hernandez officer: See Remarks 5323 MILLENIA LAKES BOULEVARD, SUITE 120, ORLANDO FL 32839
David William Johnson director 4100 MIDWAY ROAD, SUITE 2115, CARROLLTON TX 75007
Mark D Wang director, officer: See Remarks 5323 MILLENIA LAKES BLVD, ORLANDO FL 32801
Brenda J Bacon director 909 COMMERCE ROAD, ANNAPOLIS MD 21403
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
Ap Viii Dakota 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
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