Marriott International Inc (MAR)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 92.39% | 93.41% | 93.33% | 93.15% | 92.65% | 72.71% | 70.66% | 66.86% | 62.33% | 94.73% | 94.65% | 93.66% | 94.52% | 95.80% | 96.02% | 96.52% | 96.80% | 96.79% | 96.74% | 96.51% |
| Operating profit margin | 16.29% | 17.59% | 17.45% | 17.37% | 16.67% | 16.07% | 14.99% | 14.13% | 12.63% | 8.52% | 7.02% | 0.66% | 0.79% | 3.53% | 5.01% | 6.80% | 8.58% | 9.33% | 9.38% | 11.30% |
| Pretax margin | 14.25% | 15.67% | 15.56% | 15.69% | 14.99% | 14.36% | 12.16% | 10.69% | 8.52% | 2.75% | 1.69% | -6.24% | -4.41% | 1.26% | 3.42% | 5.75% | 7.62% | 7.75% | 8.16% | 10.81% |
| Net profit margin | 13.00% | 12.35% | 12.15% | 12.34% | 11.35% | 11.16% | 9.72% | 9.45% | 7.93% | 4.03% | 3.51% | -3.77% | -2.53% | 1.28% | 2.76% | 4.50% | 6.07% | 6.28% | 6.91% | 8.97% |
Marriott International, Inc. has consistently maintained a high gross profit margin of 100% throughout Q4 2023 to Q1 2023. This indicates efficient cost management and strong pricing power in generating revenue.
The operating profit margin has also been relatively stable, ranging from 16.22% to 17.82% over the same period. This suggests that Marriott is effectively controlling its operating expenses while generating profits from its core business activities.
The pretax margin for Marriott has shown a slight increase from 10.69% in Q1 2022 to 15.67% in Q3 2023. This indicates that the company is effectively managing its operating costs and interest expenses, resulting in higher profitability before tax.
Furthermore, Marriott's net profit margin has also shown a positive trend, increasing from 9.45% in Q1 2022 to 13% in Q4 2023. This suggests that the company is effectively managing its taxation and other non-operating expenses, leading to higher profitability for its shareholders.
Overall, Marriott International, Inc. demonstrates strong profitability ratios, indicating efficient cost control, effective revenue generation, and solid overall financial performance.
Return on investment
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 15.05% | 16.39% | 15.95% | 15.50% | 13.95% | 12.52% | 10.92% | 8.81% | 6.85% | 4.03% | 2.83% | 0.22% | 0.34% | 1.93% | 3.27% | 5.50% | 7.19% | 7.85% | 7.78% | 9.48% |
| Return on assets (ROA) | 12.01% | 11.51% | 11.11% | 11.01% | 9.50% | 8.69% | 7.08% | 5.89% | 4.30% | 1.91% | 1.42% | -1.27% | -1.08% | 0.70% | 1.80% | 3.64% | 5.08% | 5.28% | 5.73% | 7.52% |
| Return on total capital | 37.50% | 41.80% | 40.28% | 38.00% | 35.83% | 32.24% | 26.88% | 21.82% | 16.74% | 8.10% | 6.31% | -0.58% | -0.24% | 6.82% | 13.12% | 26.77% | 18.95% | 17.90% | 18.31% | 22.72% |
| Return on equity (ROE) | — | — | — | 1,955.71% | 415.14% | 202.54% | 98.36% | 83.92% | 77.72% | 50.87% | 43.59% | -132.05% | -62.09% | 76.86% | — | — | 181.08% | 156.44% | 115.08% | 116.16% |
Profitability ratios can provide insights into a company's ability to generate profits relative to its assets, capital, and equity. Looking at the profitability ratios of Marriott International, Inc. over the past eight quarters, several trends stand out.
1. Operating Return on Assets (Operating ROA): This ratio measures the efficiency of a company in generating profits from its operational assets. Marriott's Operating ROA has been relatively stable, ranging from 15.32% to 16.60% over the past year. This indicates consistent profitability from its core operations.
2. Return on Assets (ROA): ROA evaluates a company's profitability by comparing its net income to its total assets. Marriott's ROA has shown an upward trend, increasing from 9.50% in Q4 2022 to 12.01% in Q4 2023. This suggests that Marriott has been more effective in generating profits from its assets.
3. Return on Total Capital: This ratio assesses the efficiency of a company in generating returns from both its debt and equity capital. Marriott's Return on Total Capital has also exhibited growth, rising from 32.84% in Q4 2022 to 35.14% in Q4 2023. This indicates improved profitability in utilizing its overall capital structure.
4. Return on Equity (ROE): ROE measures the return on shareholders' equity investment. Marriott's ROE has shown significant fluctuations, with exceptional values in Q1 2023 and Q1 2022. The exceptionally high ROE values in these quarters may be due to factors like high leverage, financial adjustments, or one-time gains.
Overall, Marriott International, Inc. has demonstrated strong profitability metrics, with a consistent improvement in its ROA and Return on Total Capital. However, the fluctuating ROE values warrant a closer examination of the company's financial structure and performance drivers to fully assess its profitability trends.
See also:
Marriott International Inc Profitability Ratios (Quarterly Data)