Marriott International Inc (MAR)

Return on total capital

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Earnings before interest and tax (EBIT) US$ in thousands 3,767,000 3,943,000 3,517,000 1,600,000 -21,000
Long-term debt US$ in thousands 13,001,000 11,197,000 9,249,000 8,144,000 8,157,000
Total stockholders’ equity US$ in thousands -2,992,000 -682,000 568,000 1,414,000 430,000
Return on total capital 37.64% 37.50% 35.83% 16.74% -0.24%

December 31, 2024 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $3,767,000K ÷ ($13,001,000K + $-2,992,000K)
= 37.64%

Marriott International Inc's return on total capital has shown significant improvement over the past five years, growing from -0.24% in December 31, 2020, to 37.64% by December 31, 2024. This upward trend indicates that the company has been more effective in generating profits from its invested capital. The substantial increase in return on total capital signifies that Marriott International Inc has been able to efficiently utilize its resources and assets to generate higher returns for shareholders. This steady improvement in return on total capital demonstrates the company's ability to create more value for its investors and suggests a positive outlook for its financial performance in the upcoming years.