Marriott International Inc (MAR)

Activity ratios

Short-term

Turnover ratios

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover	—	—	—	0.34	0.52
Receivables turnover	8.98	8.74	8.08	6.99	5.98
Payables turnover	3.13	2.45	2.05	1.78	2.93
Working capital turnover	—	—	—	—	—

Based on the activity ratios provided for Marriott International Inc:

1. Inventory Turnover:
- The inventory turnover ratio decreased from 0.52 in December 2020 to 0.34 in December 2021, indicating that Marriott is selling its inventory less frequently in 2021 compared to 2020. The absence of data for the subsequent years suggests information may not be available or there may be changes in the company's operations.

2. Receivables Turnover:
- The receivables turnover ratio consistently improved from 5.98 in December 2020 to 8.98 in December 2024. This indicates that Marriott is collecting its receivables more efficiently over the years, translating into a shorter time between credit sales and cash collection.

3. Payables Turnover:
- The payables turnover ratio fluctuated over the years, decreasing from 2.93 in December 2020 to 1.78 in December 2021 but then gradually increasing to 3.13 in December 2024. This suggests variations in the company's payment practices to suppliers, with a significant improvement in 2024.

4. Working Capital Turnover:
- The data provided indicates that working capital turnover information is not available for the years 2020 to 2024. Working capital turnover ratio shows how efficiently a company uses its working capital to generate sales, and the lack of this data limits insights into Marriott's working capital management efficiency.

Overall, analyzing these activity ratios provides insights into Marriott International Inc's efficiency in managing inventory, collecting receivables, and paying its suppliers. Improve inventory turnover and working capital turnover ratios could be beneficial for the company's overall operational performance.

Average number of days

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Days of inventory on hand (DOH)	days	—	—	—	1,064.23	704.96
Days of sales outstanding (DSO)	days	40.64	41.74	45.17	52.21	61.05
Number of days of payables	days	116.53	149.24	178.43	204.94	124.50

To analyze Marriott International Inc's activity ratios, we will focus on three key metrics: Days of Inventory on Hand (DOH), Days of Sales Outstanding (DSO), and Number of Days of Payables.

1. Days of Inventory on Hand (DOH):
- DOH reflects how many days it takes for Marriott to turn its inventory into sales.
- Between December 31, 2020, and December 31, 2021, Marriott's DOH increased from 704.96 days to 1,064.23 days, indicating that the company took longer to convert its inventory into sales.
- The absence of data for the subsequent years (2022 onwards) renders it challenging to assess Marriott's inventory turnover efficiency over time.

2. Days of Sales Outstanding (DSO):
- DSO measures how quickly Marriott collects on its accounts receivable.
- Marriott's DSO decreased from 61.05 days on December 31, 2020, to 40.64 days on December 31, 2024.
- The decreasing trend in DSO suggests that Marriott has been improving its efficiency in collecting payments from customers over the years.

3. Number of Days of Payables:
- This metric shows how long Marriott takes to pay its suppliers.
- Marriott's number of days of payables increased from 124.50 days on December 31, 2020, to 204.94 days on December 31, 2021, before gradually decreasing to 116.53 days on December 31, 2024.
- The increase in payables days in 2021 suggests that Marriott extended its payment periods to suppliers, while the subsequent decrease indicates a possible effort to optimize cash flow management.

In conclusion, while Marriott International Inc showed a concerning increase in Days of Inventory on Hand, the improvement in Days of Sales Outstanding and the fluctuation in the Number of Days of Payables highlight potential changes in the company's working capital management strategies over the analyzed period.

Long-term

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Fixed asset turnover	13.69	15.00	13.11	9.22	6.98
Total asset turnover	0.96	0.92	0.84	0.54	0.43

Marriott International Inc's long-term activity ratios depict its efficiency in managing fixed assets and total assets over the years. The fixed asset turnover, which measures how effectively the company utilizes its fixed assets to generate revenue, has shown a consistent upward trend. It increased from 6.98 in 2020 to 15.00 in 2023 before slightly decreasing to 13.69 in 2024. This indicates that Marriott has been able to generate more revenue for every dollar invested in fixed assets, showcasing improved operational efficiency.

Similarly, the total asset turnover ratio, which indicates how efficiently the company utilizes all its assets to generate sales, also demonstrates a positive trend. Starting at 0.43 in 2020, the ratio has steadily increased to 0.96 by the end of 2024. This signifies that Marriott has been able to generate more revenue relative to its total assets, which suggests effective asset management and utilization.

Overall, the increasing trend in both the fixed asset turnover and total asset turnover ratios for Marriott International Inc reflects the company's ability to efficiently allocate and utilize its assets to drive revenue growth and enhance operational efficiency over the years.