Marriott International Inc (MAR)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.50 | 0.44 | 0.37 | 0.32 | 0.33 |
| Debt-to-capital ratio | 1.30 | 1.06 | 0.94 | 0.85 | 0.95 |
| Debt-to-equity ratio | — | — | 16.28 | 5.76 | 18.97 |
| Financial leverage ratio | — | — | 43.69 | 18.07 | 57.44 |
The solvency ratios of Marriott International Inc, based on the provided data, indicate the company's ability to meet its long-term financial obligations.
1. Debt-to-assets ratio: This ratio shows the proportion of the company's assets funded by debt. Over the period from December 31, 2020, to December 31, 2024, the ratio has increased from 0.33 to 0.50. The trend suggests that Marriott has been relying more on debt to finance its assets, which may indicate increased financial risk.
2. Debt-to-capital ratio: This ratio measures the proportion of a company's capital that is debt. The trend for Marriott shows an increase from 0.95 in December 2020 to 1.30 in December 2024. This indicates that the company's reliance on debt as a source of capital has increased significantly, potentially affecting its financial flexibility.
3. Debt-to-equity ratio: This ratio compares a company's total debt to its total equity. Notably, the data for December 31, 2023, and December 31, 2024, is missing. However, the available data shows a fluctuating trend, with a significant decrease from 18.97 in December 2020 to 5.76 in December 2021, followed by an increase to 16.28 in December 2022. The missing data points make it difficult to assess the company's recent leverage position accurately.
4. Financial leverage ratio: This ratio measures the extent to which a company uses debt to finance its assets. The provided data shows a decreasing trend in the ratio from 57.44 in December 2020 to 43.69 in December 2022. However, again, the data for December 31, 2023, and December 31, 2024, is missing, making it challenging to assess Marriott's current financial leverage position.
In conclusion, based on the available data, Marriott International Inc's solvency ratios indicate a trend of increasing reliance on debt over the analyzed period. This suggests that the company may be taking on more financial risk, which could impact its long-term financial stability and strategic decisions. Further analysis incorporating the missing data points would provide a more comprehensive understanding of Marriott's solvency position.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 5.42 | 6.98 | 8.73 | 3.81 | -0.05 |
The interest coverage ratio for Marriott International Inc shows a fluctuating trend over the years, indicating changes in the company's ability to cover its interest expenses. In December 2020, the ratio was negative, which implies that the company's operating income was insufficient to cover its interest obligations. However, there has been a significant improvement since then, with the ratio increasing to 3.81 in December 2021, 8.73 in December 2022, 6.98 in December 2023, and 5.42 in December 2024.
The rising trend in the interest coverage ratio signifies an enhancement in Marriott's ability to meet its interest payments from its operating earnings. A ratio above 1 indicates that the company is generating enough income to cover its interest expenses. The ratio peaked in December 2022, suggesting a strong capacity to meet financial obligations during that period.
Overall, the improving interest coverage ratio reflects a positive trend for Marriott International Inc's financial health, as it demonstrates greater financial stability and reduced risk of defaulting on debt payments in recent years. It is essential for investors and creditors to monitor this ratio to assess the company's ability to manage its debt and meet interest obligations effectively.