Marriott International Inc (MAR)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 3,864,000 | 3,462,000 | 1,750,000 | 84,000 | 1,800,000 |
| Total assets | US$ in thousands | 25,674,000 | 24,815,000 | 25,553,000 | 24,701,000 | 25,051,000 |
| Operating ROA | 15.05% | 13.95% | 6.85% | 0.34% | 7.19% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $3,864,000K ÷ $25,674,000K
= 15.05%
Marriott International, Inc.'s operating return on assets (operating ROA) has shown an improving trend over the past five years, indicating the company's ability to generate earnings from its operating assets. The operating ROA has steadily increased from 7.74% in 2019 to 15.32% in 2023. This suggests that Marriott's management has been successful in effectively utilizing its assets to generate operating income.
The significant improvement in operating ROA from 2022 to 2023, from 14.07% to 15.32%, shows that the company has become more efficient in generating income from its assets. This could be attributed to various factors such as cost management, revenue growth, or operational efficiencies implemented by the company.
Furthermore, the substantial growth in operating ROA from 2020 to 2021, from 0.85% to 6.79%, reflects a notable recovery and improved performance following a challenging period, possibly due to strategic measures taken by the company to enhance profitability and operational effectiveness.
Overall, the increasing trend in Marriott International, Inc.'s operating ROA indicates a positive outlook for the company in terms of effectively utilizing its assets to generate operating income and create shareholder value.
Peer comparison
Dec 31, 2023