Marriott International Inc (MAR)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,805,000 | 1,526,000 | 1,293,000 | 1,545,000 | 1,789,000 |
| Payables | US$ in thousands | 738,000 | 746,000 | 726,000 | 527,000 | 720,000 |
| Payables turnover | 2.45 | 2.05 | 1.78 | 2.93 | 2.48 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $1,805,000K ÷ $738,000K
= 2.45
The payables turnover ratio for Marriott International, Inc. has been consistently reported as zero for the past five years, spanning from December 31, 2019, to December 31, 2023. This indicates that the company is not effectively managing its accounts payable in relation to its cost of sales, as the formula for payables turnover (Cost of Goods Sold / Average Accounts Payable) is resulting in zero values. A payables turnover ratio of zero suggests that Marriott is not utilizing its accounts payable efficiently to support its operations and possibly not taking advantage of credit terms with suppliers. Further investigation into the company's payables management practices and financial health is warranted to understand the reasons behind this consistently low ratio.
Peer comparison
Dec 31, 2023