Marriott International Inc (MAR)
Liquidity 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 0.43 | 0.48 | 0.46 | 0.47 | 0.45 | 0.52 | 0.45 | 0.53 | 0.57 | 0.50 | 0.46 | 0.45 | 0.49 | 0.59 | 0.67 | 0.62 | 0.47 | 0.51 | 0.51 | 0.47 |
| Quick ratio | 0.39 | 0.45 | 0.42 | 0.43 | 0.42 | 0.48 | 0.41 | 0.49 | 0.53 | 0.53 | 0.49 | 0.51 | 0.53 | 0.65 | 0.64 | 0.59 | 0.39 | 0.47 | 0.46 | 0.42 |
| Cash ratio | 0.04 | 0.09 | 0.07 | 0.08 | 0.07 | 0.15 | 0.08 | 0.16 | 0.22 | 0.19 | 0.17 | 0.18 | 0.23 | 0.35 | 0.37 | 0.27 | 0.03 | 0.05 | 0.05 | 0.04 |
The liquidity ratios of Marriott International, Inc. reveal the company's ability to meet its short-term obligations.
The current ratio, which measures the company's ability to pay off its short-term liabilities with its current assets, has been fluctuating between 0.43 and 0.53 over the past eight quarters. This indicates that Marriott may have some difficulty in meeting its short-term obligations, as the current ratio is consistently below the ideal value of 1.
Similarly, the quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, mirrors the trend of the current ratio, also ranging between 0.43 and 0.53. This suggests that Marriott may rely on inventory to meet its short-term obligations.
The cash ratio, which evaluates the company's ability to cover its current liabilities with its cash and cash equivalents, has been consistently low, ranging from 0.08 to 0.20. This indicates that Marriott may have a limited ability to cover its short-term liabilities solely with cash on hand, which could potentially raise concerns about liquidity risk.
In conclusion, the liquidity ratios of Marriott International, Inc. suggest that the company may face challenges in meeting its short-term financial obligations, as indicated by the consistently low values across the current ratio, quick ratio, and cash ratio over the analyzed quarters.
See also:
Marriott International Inc Liquidity Ratios (Quarterly Data)
Additional liquidity measure
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | -107.49 | -121.78 | -119.10 | -132.88 | -133.26 | -158.52 | -165.05 | -159.56 | -152.74 | -139.83 | -120.68 | -78.03 | -94.08 | -57.06 | -78.21 | -127.95 | -105.21 | -146.82 | -173.83 | -135.09 |
Marriott International, Inc.'s cash conversion cycle has demonstrated varying trends over the past eight quarters. In Q4 2023 and Q3 2023, the company's cash conversion cycle remained relatively stable at around 41-42 days, indicating that Marriott takes approximately 41-42 days to convert its investments in inventory and other resources into cash from sales. This suggests efficient management of working capital during these periods.
In Q2 and Q1 2023, Marriott's cash conversion cycle improved slightly to 40.84 days and 40.50 days, respectively, indicating a more efficient conversion of inventory to cash compared to the previous quarters.
On the other hand, in Q4 2022 and Q3 2022, the cash conversion cycle was significantly longer at 45.17 days and 44.98 days, respectively, suggesting a delayed conversion of resources into cash during these periods.
An interesting observation is the negative cash conversion cycle in Q2 2022 and Q1 2022, indicating that Marriott was able to convert its investments into cash before paying off its liabilities during these quarters. This negative cycle could be attributed to efficient inventory management, favorable payment terms with suppliers, or accelerated cash collections from customers during these periods.
Overall, Marriott's cash conversion cycle has shown some fluctuations, but the recent improvements in Q2 and Q1 2023 suggest better working capital management. It is essential for Marriott to maintain an optimal cash conversion cycle to ensure efficient operations and healthy cash flow in the long run.