Marriott International Inc (MAR)

Activity ratios

Short-term

Turnover ratios

	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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Inventory turnover	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Receivables turnover	8.74	8.71	8.94	9.01	8.08	8.11	7.86	7.45	6.99	5.67	5.12	4.18	5.98	7.69	10.36	9.98	8.76	8.73	8.87	9.36
Payables turnover	2.45	2.23	2.28	2.11	2.05	1.79	1.73	1.75	1.78	1.79	1.90	2.21	2.35	3.49	3.22	2.22	2.48	1.93	1.70	2.10
Working capital turnover	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—

The inventory turnover ratio for Marriott International, Inc. is not provided for the quarters in the data table. The receivables turnover ratio has been relatively stable over the past eight quarters, ranging from 7.45 to 9.01 times. This indicates that Marriott is efficient in collecting payments from its customers.

On the other hand, the payables turnover ratio has shown inconsistency, with a significant drop from 7.02 in Q1 2022 to 3.77 in Q2 2022 before declining further to 0.00 in subsequent quarters. This suggests that Marriott may be taking longer to pay its suppliers, leading to a potential strain on vendor relationships or cash flow management.

Unfortunately, the working capital turnover ratio is not available in the data provided, which limits a comprehensive analysis of Marriott's overall efficiency in managing its working capital to generate sales.

Average number of days

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Days of inventory on hand (DOH)	days	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Days of sales outstanding (DSO)	days	41.74	41.91	40.84	40.50	45.17	44.98	46.46	48.98	52.21	64.35	71.33	87.31	61.05	47.47	35.22	36.57	41.68	41.83	41.13	38.99
Number of days of payables	days	149.24	163.69	159.94	173.38	178.43	203.51	211.50	208.53	204.94	204.18	192.01	165.35	155.12	104.53	113.42	164.52	146.90	188.65	214.97	174.09

The activity ratios of Marriott International, Inc. can provide insights into how efficiently the company manages its assets and liabilities.

Days of inventory on hand (DOH) data is not available, making it challenging to evaluate how long Marriott's inventory sits before being sold. A lower DOH generally indicates better inventory management, as it suggests faster turnover and reduced holding costs.

Days of sales outstanding (DSO) have shown relatively consistent performance over the quarters, ranging from 40.50 to 46.46 days. A lower DSO is favorable as it signifies quicker collection of receivables, indicating strong credit management and liquidity.

The number of days of payables has fluctuated, with the significant jump in Q2 2022 to 96.72 days possibly indicating extended payment terms with suppliers, which can positively impact cash flow management in the short term. However, excessively long payment periods may strain relationships with vendors in the long run.

Overall, a closer examination of the complete inventory data, coupled with further analysis of accounts payable trends, can better illustrate Marriott International's efficiency in managing its operating cycle and working capital.

Long-term

	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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Fixed asset turnover	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	11.01	10.66	10.62	10.59
Total asset turnover	0.92	0.93	0.91	0.89	0.84	0.78	0.73	0.62	0.54	0.47	0.40	0.34	0.43	0.55	0.65	0.81	0.84	0.84	0.83	0.84

Long-term activity ratios for Marriott International, Inc. can provide valuable insights into the company's efficiency in managing its assets and generating revenue.

The fixed asset turnover ratio measures how well the company utilizes its fixed assets to generate sales. In this case, the ratio has been showing an increasing trend over the past quarters, reaching 15.00 in Q4 2023 from 10.28 in Q1 2022. This indicates that Marriott International has been increasingly efficient in generating revenue from its fixed assets.

On the other hand, the total asset turnover ratio reflects the company's ability to generate sales from all its assets. While the ratio has also been trending upwards, it is at a lower level compared to the fixed asset turnover ratio. This suggests that Marriott International may have a significant proportion of assets that do not directly contribute to revenue generation, such as long-term investments or goodwill.

Overall, the improving trend in both fixed asset turnover and total asset turnover ratios indicates that Marriott International is effectively utilizing its assets to drive sales growth and improve its overall efficiency in the long term.