Marriott International Inc (MAR)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 3,943,000 | 3,517,000 | 1,600,000 | -21,000 | 1,993,000 |
| Long-term debt | US$ in thousands | 11,197,000 | 9,249,000 | 8,144,000 | 8,157,000 | 9,812,000 |
| Total stockholders’ equity | US$ in thousands | -682,000 | 568,000 | 1,414,000 | 430,000 | 703,000 |
| Return on total capital | 37.50% | 35.83% | 16.74% | -0.24% | 18.95% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $3,943,000K ÷ ($11,197,000K + $-682,000K)
= 37.50%
Marriott International, Inc.'s return on total capital has shown a positive trend over the past five years. The company's return on total capital increased significantly from 2019 to 2020, reflecting a substantial improvement in capital efficiency. The ratio continued to improve in subsequent years, reaching 35.14% as of December 31, 2023, indicating that Marriott is generating a higher return per dollar of total capital employed. This positive trend suggests that the company is effectively utilizing its capital to generate profits and create value for its shareholders. Overall, Marriott International's improving return on total capital signifies a strengthening financial performance and operational efficiency.
Peer comparison
Dec 31, 2023