Marriott International Inc (MAR)

Fixed asset turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Revenue (ttm)	US$ in thousands	25,100,000	24,766,000	24,439,000	24,075,000	23,713,000	23,541,000	22,926,000	22,189,000	20,773,000	19,296,000	17,929,000	15,740,000	13,857,000	11,583,000	9,891,000	8,206,000	10,571,000	13,770,000	16,800,000	20,641,000
Property, plant and equipment	US$ in thousands	1,833,000	1,624,000	1,558,000	1,570,000	1,581,000	1,572,000	1,560,000	1,595,000	1,585,000	1,509,000	1,532,000	1,531,000	1,503,000	1,496,000	1,490,000	1,482,000	1,514,000	1,790,000	1,818,000	1,854,000
Fixed asset turnover		13.69	15.25	15.69	15.33	15.00	14.98	14.70	13.91	13.11	12.79	11.70	10.28	9.22	7.74	6.64	5.54	6.98	7.69	9.24	11.13

December 31, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $25,100,000K ÷ $1,833,000K
= 13.69

The fixed asset turnover ratio for Marriott International Inc has been fluctuating over the years based on the provided data. The ratio indicates how efficiently the company is generating revenue from its fixed assets.

The trend shows a general decline in the ratio from 11.13 in March 2020 to a low of 5.54 in March 2021, suggesting a decrease in the efficiency of utilizing fixed assets to generate revenue during this period. However, the ratio started to improve in the subsequent quarters, reaching a peak of 15.69 in June 2024, indicating an enhancement in the efficiency of asset utilization.

The uptrend from 2021 to 2024 signals that Marriott International Inc has been able to optimize its fixed assets better to generate more revenue. A high fixed asset turnover ratio is favorable as it indicates that the company is effectively using its fixed assets to generate sales.

Overall, the fluctuation in the fixed asset turnover ratio for Marriott International Inc reflects changes in operational efficiency and productivity in utilizing its fixed assets over the years. The company's ability to consistently improve this ratio indicates a positive trend in asset management and revenue generation.