Marriott International Inc (MAR)

Activity ratios

Short-term

Turnover ratios

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Inventory turnover	—	—	0.34	0.52	0.55
Receivables turnover	8.74	8.08	6.99	5.98	8.76
Payables turnover	2.45	2.05	1.78	2.93	2.48
Working capital turnover	—	—	—	—	—

Based on the provided data for Marriott International, Inc., we can analyze the activity ratios as follows:

1. Receivables Turnover:
- The receivables turnover ratio measures how efficiently a company is collecting its outstanding receivables during a specific period.
- Marriott's receivables turnover has fluctuated over the past five years, ranging from 5.98 to 8.76.
- A higher turnover ratio indicates a shorter time to collect receivables, which is generally favorable as it signifies effective credit management and timely collections.

2. Payables Turnover:
- The payables turnover ratio evaluates the efficiency of a company's accounts payable management in paying off its suppliers.
- The data shows that the payables turnover for Marriott is consistently reported as zero for the past five years.
- A zero turnover ratio could imply that the company may not have significant payables outstanding or that there are potential issues with data reporting.

3. Inventory Turnover:
- Unfortunately, the data for inventory turnover is not provided, which could impact the comprehensive analysis of Marriott's efficiency in managing its inventory levels.
- A high inventory turnover ratio would indicate that Marriott is effectively selling its inventory and not holding excessive stock, which is generally favorable for financial performance.

4. Working Capital Turnover:
- The working capital turnover ratio assesses how efficiently a company utilizes its working capital to generate sales revenue.
- The data is not available for working capital turnover for Marriott across the given years, making it difficult to analyze the company's operational efficiency based on this metric.

In conclusion, the analysis of Marriott International, Inc.'s activity ratios based on the data provided reveals fluctuations in receivables turnover over the years, a consistent absence of payables turnover data, and a lack of information regarding inventory and working capital turnovers, limiting a comprehensive assessment of the company's operational efficiency.

Average number of days

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Days of inventory on hand (DOH)	days	—	—	1,064.23	704.96	661.86
Days of sales outstanding (DSO)	days	41.74	45.17	52.21	61.05	41.68
Number of days of payables	days	149.24	178.43	204.94	124.50	146.90

Based on the provided data for Marriott International, Inc.'s activity ratios, the following analysis can be made:

1. Days of Sales Outstanding (DSO):
- DSO measures the average number of days it takes for a company to collect revenue after a sale.
- The trend for Marriott International, Inc.'s DSO over the past five years shows a fluctuating pattern, with a decrease from 61.05 days in 2020 to 41.74 days in 2023.
- A lower DSO indicates that Marriott has been able to collect revenue more quickly from its customers, potentially improving cash flow and liquidity.

2. Days of Inventory on Hand (DOH):
- Unfortunately, specific data for Days of Inventory on Hand is not available for the analyzed periods.
- DOH typically reflects how efficiently a company manages its inventory and can provide insights into its inventory turnover and production efficiency.

3. Number of Days of Payables:
- Specific data for the Number of Days of Payables for Marriott International, Inc. is not provided in the table for the analyzed periods.
- This ratio would reflect how long it takes for the company to pay its suppliers, providing insights into its liquidity management and vendor relationships.

In conclusion, based on the available DSO data, it appears that Marriott International, Inc. has been able to improve its collection of receivables over the years, which could potentially reflect effective credit policies or customer management strategies. To conduct a more comprehensive analysis, additional information on DOH and the Number of Days of Payables would be needed to evaluate the company's overall efficiency in managing inventory and payables.

Long-term

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Fixed asset turnover	15.00	13.11	9.22	6.98	11.01
Total asset turnover	0.92	0.84	0.54	0.43	0.84

Marriott International, Inc.'s long-term activity ratios provide insights into the efficiency of the company's asset utilization over the years.

Fixed asset turnover has shown fluctuations over the past five years, with a notable increase from 2020 to 2023. This indicates that the company has been more effective in generating revenue from its fixed assets in recent years.

Total asset turnover has also experienced fluctuations, with a significant improvement from 2020 to 2021, followed by a decrease in 2023. This ratio suggests how well the company is utilizing all its assets to generate sales. The improvement in 2021 indicates a more efficient use of assets in generating revenue, albeit with a slight decline in 2023.

Overall, Marriott International, Inc. has shown varying levels of efficiency in utilizing its assets to generate sales over the past five years. The fluctuations in both fixed asset turnover and total asset turnover ratios suggest that the company's asset utilization strategy has evolved over time, impacting its long-term activity performance.