Marriott International Inc (MAR)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 23,713,000 | 20,773,000 | 13,857,000 | 10,571,000 | 20,972,000 |
| Property, plant and equipment | US$ in thousands | 1,581,000 | 1,585,000 | 1,503,000 | 1,514,000 | 1,904,000 |
| Fixed asset turnover | 15.00 | 13.11 | 9.22 | 6.98 | 11.01 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $23,713,000K ÷ $1,581,000K
= 15.00
Marriott International, Inc.'s fixed asset turnover ratio has shown a positive trend over the five-year period from 2019 to 2023. The ratio indicates how efficiently the company is generating revenue from its investment in fixed assets such as property, plant, and equipment.
A higher fixed asset turnover ratio is generally favorable as it suggests that the company is effectively utilizing its fixed assets to generate sales. In this case, Marriott's fixed asset turnover has increased from 11.01 in 2019 to 15.00 in 2023, which indicates an improvement in asset utilization efficiency.
The significant increase in the fixed asset turnover ratio from 2019 to 2023 demonstrates that Marriott has been able to generate more revenue per dollar invested in fixed assets. This could be attributed to various factors such as effective management of properties, improving operational efficiency, or strategic asset utilization.
Overall, the upward trend in Marriott International, Inc.'s fixed asset turnover ratio reflects positively on the company's ability to efficiently leverage its fixed assets to drive revenue growth and profitability.
Peer comparison
Dec 31, 2023