Marriott International Inc (MAR)

Liquidity 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
Current ratio 0.40 0.42 0.42 0.42 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
Quick ratio 0.37 0.39 0.39 0.47 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
Cash ratio 0.05 0.05 0.04 0.14 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

The current ratio of Marriott International Inc has shown fluctuations over the years, ranging from a low of 0.40 at the end of December 31, 2024, to a high of 0.67 at the end of June 30, 2020. This ratio indicates a decreasing trend in the company's ability to cover its short-term liabilities with its current assets, reaching a low of 0.40 by the end of December 31, 2024.

The quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, also shows a downward trend over time. It ranged from a low of 0.37 at the end of June 30, 2020, to a low of 0.37 by the end of December 31, 2024, indicating a decreasing ability to cover immediate obligations without relying on inventory.

The cash ratio, representing the most conservative measure of liquidity, reveals a similar pattern of decline in Marriott International Inc's liquidity position. It ranged from a high of 0.37 at the end of June 30, 2020, to a low of 0.04 by the end of June 30, 2024, signaling a decreasing ability to cover short-term liabilities with its most liquid assets.

Overall, based on the analysis of liquidity ratios, Marriott International Inc experienced a decreasing trend in its liquidity position over the years, as reflected in its current, quick, and cash ratios. This may indicate potential challenges in meeting short-term obligations solely from current assets, excluding inventory, and pure cash holdings.

See also:

Marriott International Inc Liquidity Ratios (Quarterly Data)

Additional liquidity measure

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
Cash conversion cycle days -75.88 551.05 -118.53 -113.63 -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

Marriott International Inc's cash conversion cycle, which measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales, has shown fluctuating trends over the specified time period.

Looking at the data provided, the cash conversion cycle for Marriott International Inc has generally been negative, indicating that the company has been efficient in managing its working capital during this period. A negative cash conversion cycle typically suggests that the company is able to generate cash quickly from its operational activities.

There are notable variations in the cash conversion cycle over the quarters, with the cycle reaching its lowest point in September 2024 at 551.05 days. This significant increase in the cash conversion cycle during this quarter may indicate a potential issue with the company's working capital management, such as delays in collecting receivables or managing inventory levels efficiently.

Overall, Marriott International Inc's cash conversion cycle has exhibited both positive and concerning trends, highlighting the importance of continuous monitoring and effective management of working capital to ensure optimal cash flow and financial performance.