Marriott International Inc (MAR)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 338,000 | 507,000 | 1,393,000 | 877,000 | 225,000 |
| Short-term investments | US$ in thousands | — | — | — | 422,000 | — |
| Total current liabilities | US$ in thousands | 7,762,000 | 7,339,000 | 6,407,000 | 5,752,000 | 6,677,000 |
| Cash ratio | 0.04 | 0.07 | 0.22 | 0.23 | 0.03 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($338,000K
+ $—K)
÷ $7,762,000K
= 0.04
The cash ratio of Marriott International, Inc. has fluctuated over the past five years. The ratio was at its lowest in 2019 at 0.07, indicating that the company had $0.07 of cash and cash equivalents for every $1 of current liabilities.
In 2021, the cash ratio significantly increased to 0.26, suggesting that Marriott had improved its liquidity position by holding more cash relative to its short-term obligations. This could be a result of effective cash management strategies or increased cash reserves.
However, in 2023, the cash ratio declined to 0.08, indicating a decrease in liquidity compared to the previous year. A lower cash ratio may imply increased reliance on other current assets or short-term financing to meet immediate financial obligations.
Overall, while the cash ratio of Marriott International, Inc. has varied, it is essential to assess the trend over multiple years to understand the company's liquidity management and financial health effectively.
Peer comparison
Dec 31, 2023