Marriott International Inc (MAR)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 90.48% | 92.39% | 92.65% | 90.67% | 85.38% |
| Operating profit margin | 15.01% | 16.29% | 16.67% | 12.63% | 0.79% |
| Pretax margin | 12.55% | 14.25% | 14.99% | 8.52% | -4.41% |
| Net profit margin | 9.46% | 13.00% | 11.35% | 7.93% | -2.53% |
Based on the provided data, Marriott International Inc has shown an increasing trend in its profitability ratios over the years.
1. Gross Profit Margin: The gross profit margin has been consistently high, indicating that Marriott effectively controls its production costs and enjoys healthy profits on its operations. The margin increased from 85.38% in December 2020 to 90.67% in December 2021, reaching a peak of 92.65% by December 2022 before slightly decreasing to 90.48% by the end of December 2024.
2. Operating Profit Margin: Marriott significantly improved its operating profit margin over the period, reflecting operational efficiency and effective cost management. The margin surged from 0.79% in December 2020 to 12.63% in December 2021, and further increased to 16.67% by December 2022. It then stabilized around 15% in the following years, with a slight decrease to 15.01% by the end of December 2024.
3. Pretax Margin: The pretax margin demonstrates Marriott's ability to generate profits before taxes. The company showed a remarkable turnaround from a negative margin of -4.41% in December 2020 to a positive margin of 8.52% in December 2021. This trend continued to improve, reaching 14.99% by December 2022, and stabilizing around 14% in the subsequent years.
4. Net Profit Margin: Marriott's net profit margin indicates the actual profitability after all expenses, including taxes. The company's net profit margin increased steadily from -2.53% in December 2020 to 13.00% in December 2023. However, there was a slight dip to 9.46% by the end of December 2024.
Overall, Marriott International Inc has demonstrated a strong performance in managing its profitability ratios, showing consistent improvement across different margins, which indicates effective financial management practices and operational efficiency.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 14.39% | 15.05% | 13.95% | 6.85% | 0.34% |
| Return on assets (ROA) | 9.07% | 12.01% | 9.50% | 4.30% | -1.08% |
| Return on total capital | 37.64% | 37.50% | 35.83% | 16.74% | -0.24% |
| Return on equity (ROE) | — | — | 415.14% | 77.72% | -62.09% |
Marriott International Inc's profitability ratios have shown significant improvement over the years. The Operating return on assets (Operating ROA) has increased from 0.34% in December 2020 to 14.39% in December 2024, indicating that the company has been more efficient in generating operating profit from its assets.
Similarly, the Return on assets (ROA) has also depicted a positive trend, climbing from -1.08% in December 2020 to 9.07% in December 2024. This signifies an enhancement in the company's ability to generate profit from its total assets.
The Return on total capital has demonstrated a remarkable rise, soaring from -0.24% in December 2020 to 37.64% in December 2024, reflecting the company's effective use of total capital to generate returns for its stakeholders.
Furthermore, the Return on equity (ROE) indicates a substantial improvement, escalating from -62.09% in December 2020 to a significant 415.14% in December 2022. Although data is not available for 2023 and 2024, the upward trend in ROE signifies the company's ability to generate substantial returns for its equity shareholders.
Overall, Marriott International Inc's profitability ratios have shown impressive growth, reflecting the company's efficiency and effectiveness in generating profits and returns for its stakeholders.