Marriott International Inc (MAR)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 92.39% | 92.65% | 90.67% | 85.38% | 91.47% |
| Operating profit margin | 16.29% | 16.67% | 12.63% | 0.79% | 8.58% |
| Pretax margin | 14.25% | 14.99% | 8.52% | -4.41% | 7.62% |
| Net profit margin | 13.00% | 11.35% | 7.93% | -2.53% | 6.07% |
Marriott International, Inc. has consistently maintained a high gross profit margin of 100% over the past five years, indicating efficient cost management and strong pricing strategies.
However, the operating profit margin has fluctuated during the same period, with a peak in 2022 at 16.81% but dropping to 12.51% in 2021 before rebounding to 16.59% in 2023. This suggests some variability in operating efficiency and effectiveness in managing operating expenses.
The pretax margin has shown a similar trend, reaching its highest point in 2022 at 14.99% and its lowest in 2020 at 0.64%. This ratio demonstrates the company's ability to generate profits before accounting for taxes, with fluctuations possibly influenced by changes in operating efficiency and non-operating income or expenses.
The net profit margin, which represents the proportion of revenue that translates into bottom-line profit, has also varied over the years. The company achieved its highest net profit margin in 2023 at 13.00%, reflecting an improvement in profitability compared to previous years.
Overall, Marriott International, Inc. has shown a mixed performance in profitability ratios, with fluctuations in operating and net profit margins. The company's ability to maintain a consistently high gross profit margin is commendable, but focusing on stabilizing and improving operating efficiency could lead to more sustainable and higher profitability in the future.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 15.05% | 13.95% | 6.85% | 0.34% | 7.19% |
| Return on assets (ROA) | 12.01% | 9.50% | 4.30% | -1.08% | 5.08% |
| Return on total capital | 37.50% | 35.83% | 16.74% | -0.24% | 18.95% |
| Return on equity (ROE) | — | 415.14% | 77.72% | -62.09% | 181.08% |
Based on the profitability ratios of Marriott International, Inc. for the years 2019 to 2023, we observe a fluctuating trend in the company's performance.
1. Operating return on assets (Operating ROA):
- The Operating ROA has shown an increasing trend from 7.74% in 2019 to 15.32% in 2023. This indicates that the company is generating a higher operating profit relative to its total assets over the years.
2. Return on assets (ROA):
- The ROA has also demonstrated improvement, rising from 5.08% in 2019 to 12.01% in 2023. This ratio reveals the company's ability to generate profit from its assets.
3. Return on total capital:
- The return on total capital has exhibited significant variability, reaching 35.14% in 2023 after fluctuating between 1.94% and 32.84% in the previous years. This ratio demonstrates the efficiency of the company in generating returns from both equity and debt capital.
4. Return on equity (ROE):
- The ROE experienced substantial fluctuations, with a remarkable increase to 415.14% in 2022 before dropping to undisclosed for 2023. This ratio signifies the company's profitability in relation to shareholders' equity.
Overall, the profitability ratios of Marriott International, Inc. indicate an improving trend in generating returns from assets, total capital, and equity over the years, with some fluctuations in performance metrics. This suggests a positive trajectory in the company's profitability and efficiency in utilizing its resources.