Marriott International Inc (MAR)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 396,000 | 338,000 | 507,000 | 1,393,000 | 877,000 |
| Short-term investments | US$ in thousands | — | — | — | — | 422,000 |
| Total current liabilities | US$ in thousands | 8,649,000 | 7,762,000 | 7,339,000 | 6,407,000 | 5,752,000 |
| Cash ratio | 0.05 | 0.04 | 0.07 | 0.22 | 0.23 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($396,000K
+ $—K)
÷ $8,649,000K
= 0.05
The cash ratio for Marriott International Inc has shown a declining trend over the past five years, decreasing from 0.23 in December 2020 to 0.05 in December 2024. This indicates that the company's ability to cover its short-term liabilities with its cash and cash equivalents has weakened over the period. A cash ratio of below 1 suggests that Marriott may not have sufficient liquid assets to meet its immediate obligations. The sharp decrease in the cash ratio from 2020 to 2024 raises concerns about the company's liquidity position and highlights the importance of monitoring its cash management strategies in the future.
Peer comparison
Dec 31, 2024