Marriott International Inc (MAR)

Activity ratios

Short-term

Turnover ratios

	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
Inventory turnover	—	0.55	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Receivables turnover	8.98	8.48	8.58	8.76	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
Payables turnover	3.13	2.37	2.27	2.35	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
Working capital turnover	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—

The activity ratios of Marriott International Inc provide insights into the efficiency of the company's operations.

1. Inventory Turnover: The inventory turnover ratio for Marriott shows a value of 0.55 for September 30, 2024. This indicates that the company's inventory turnover is relatively low, suggesting that Marriott may be holding onto its inventory for an extended period, which could tie up capital and impact profitability.

2. Receivables Turnover: Marriott's receivables turnover has been gradually decreasing, with a value of 8.98 for December 31, 2024. This trend indicates that Marriott is taking longer to collect payments from its customers, which could potentially signal issues with credit policies or the creditworthiness of customers.

3. Payables Turnover: The payables turnover ratio for Marriott has been fluctuating, reaching a value of 3.13 for December 31, 2024. A higher payables turnover ratio suggests that Marriott is taking longer to pay its suppliers, which could indicate favorable terms with suppliers or potential cash flow management strategies.

4. Working Capital Turnover: There is no data available for the working capital turnover ratio for Marriott, which limits the ability to assess how efficiently the company is utilizing its working capital to generate sales.

Overall, Marriott's activity ratios show some areas of concern, particularly in inventory turnover and receivables turnover, which may require further analysis to identify potential operational inefficiencies and areas for improvement.

Average number of days

		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
Days of inventory on hand (DOH)	days	—	662.32	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Days of sales outstanding (DSO)	days	40.64	43.03	42.52	41.65	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
Number of days of payables	days	116.53	154.30	161.05	155.28	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

Based on the provided data, Marriott International Inc's activity ratios show the following trends:

1. Days of Inventory on Hand (DOH): The DOH for Marriott International Inc was not available for the majority of the periods, except for September 30, 2024, where it was 662.32 days. This indicates that the company had a significant amount of inventory relative to its sales during that period.

2. Days of Sales Outstanding (DSO): The DSO has generally shown a decreasing trend from March 2020 to December 2024, indicating that Marriott International Inc has been able to collect its accounts receivable more efficiently over time. The DSO decreased from 36.57 days in March 2020 to 40.64 days in December 2024.

3. Number of Days of Payables: The number of days of payables has fluctuated over the periods, with some periods showing an increase while others showing a decrease. The trend shows some volatility in the company's ability to pay its suppliers promptly, with the number of days of payables ranging from 113.42 days in June 2020 to 211.50 days in June 2022.

Overall, Marriott International Inc's activity ratios suggest fluctuations in managing inventory levels, improving accounts receivable collection efficiency, and variability in the payment terms with suppliers over the analyzed periods.

Long-term

	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
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
Total asset turnover	0.96	0.94	0.95	0.93	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

Long-term activity ratios provide insight into how efficiently a company is utilizing its assets to generate revenue.

Looking at Marriott International Inc's fixed asset turnover ratio, we see a gradual decline from 11.13 in March 2020 to a low of 5.54 in March 2021, suggesting a decrease in the company's ability to generate sales from its fixed assets. However, there has been a steady improvement since then, reaching 15.25 by September 2024. This indicates that Marriott has been more effective in using its fixed assets to generate revenue in recent years.

Analyzing the total asset turnover ratio, we observe a similar trend of fluctuation over the period. Starting at 0.81 in March 2020, the ratio dropped to 0.43 by December 2020, signifying a decrease in overall asset efficiency. However, there has been a consistent upward trend, reaching 0.96 by December 2024. This improvement indicates that Marriott has been more successful in generating sales from all its assets and is utilizing its resources more efficiently.

Overall, the increasing trend in both fixed asset turnover and total asset turnover ratios for Marriott International Inc suggests that the company has been able to enhance its operational efficiency and effectively utilize its assets to drive revenue growth over the years.