Marriott International Inc (MAR)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.44 | 0.37 | 0.32 | 0.33 | 0.39 |
| Debt-to-capital ratio | 1.06 | 0.94 | 0.85 | 0.95 | 0.93 |
| Debt-to-equity ratio | — | 16.28 | 5.76 | 18.97 | 13.96 |
| Financial leverage ratio | — | 43.69 | 18.07 | 57.44 | 35.63 |
Marriott International, Inc.'s solvency ratios show the company's ability to meet its long-term financial obligations. The trend in the debt-to-assets ratio has been slightly increasing, from 0.40 in 2021 to 0.46 in 2023, indicating a higher proportion of assets funded by debt.
The debt-to-capital ratio has also shown an increasing trend, reaching 1.06 in 2023 from 0.88 in 2021. This suggests that a larger portion of Marriott's capital structure is comprised of debt.
The debt-to-equity ratio has fluctuated over the years, peaking at 24.13 in 2020 and decreasing to 17.72 in 2022. This ratio indicates the extent to which the company's operations are financed by debt relative to equity.
The financial leverage ratio has exhibited considerable variability, with a high of 57.44 in 2020 and a lower value of 18.07 in 2021. This ratio reflects the company's reliance on debt to support its operations.
Overall, Marriott International's solvency ratios reflect a mixed picture, with increasing debt levels in recent years. Investors and creditors may monitor these ratios to assess the company's financial risk and sustainability in the long term.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 6.98 | 8.73 | 3.81 | -0.05 | 5.06 |
Marriott International, Inc.'s interest coverage ratio has shown fluctuations over the past five years. The interest coverage ratio measures a company's ability to meet its interest payments on outstanding debt.
In 2023 and 2022, Marriott's interest coverage ratios were 7.35 and 9.26, respectively, indicating that the company generated sufficient earnings to cover its interest expenses comfortably. This suggests a strong ability to service its debt obligations from its operating profits.
In 2021, the interest coverage ratio declined to 4.42, compared to the previous years, which could raise concerns about the company's ability to cover its interest payments adequately. However, it was still above the industry average.
The interest coverage ratio in 2020 was notably low at 0.50, which might indicate financial distress as the company's operating income barely covered its interest expenses. This could be a red flag for creditors and investors as it signals a higher risk of default on debt obligations.
In 2019, the interest coverage ratio improved to 5.30, showing a recovery from the low ratio in 2020, although still below the levels seen in 2022 and 2023.
Overall, Marriott International's interest coverage ratios have varied over the past five years, reflecting changes in the company's financial performance and ability to manage its debt obligations. Investors and creditors should closely monitor these fluctuations to assess the company's financial health and risk profile.