Marriott International Inc (MAR)

Payables turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	2,390,000	1,805,000	1,526,000	1,293,000	1,545,000
Payables	US$ in thousands	763,000	738,000	746,000	726,000	527,000
Payables turnover		3.13	2.45	2.05	1.78	2.93

December 31, 2024 calculation

Payables turnover = Cost of revenue ÷ Payables
= $2,390,000K ÷ $763,000K
= 3.13

Marriott International Inc's payables turnover has exhibited some fluctuations over the years. In 2020, the payables turnover ratio stood at 2.93, indicating that the company managed to pay off its suppliers approximately 2.93 times during the year. However, there was a decline in the payables turnover ratio to 1.78 by the end of 2021, suggesting that the company took longer to pay off its suppliers compared to the previous year.

Subsequently, there was a slight improvement in the payables turnover ratio to 2.05 by the end of 2022, indicating a relatively better payment management compared to the previous year. The ratio further increased to 2.45 by the end of 2023, signaling that Marriott was more efficient in managing its accounts payable during that period.

By the end of 2024, the payables turnover ratio significantly improved to 3.13, reflecting a faster payment cycle and better management of supplier obligations by Marriott International Inc. Overall, the trend in the payables turnover ratio of the company suggests fluctuations but with an overall positive trajectory towards more efficient management of accounts payable over the years.