Marriott International Inc (MAR)
Debt-to-capital ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 11,197,000 | 10,745,000 | 10,276,000 | 10,170,000 | 9,249,000 | 8,727,000 | 7,797,000 | 7,801,000 | 8,144,000 | 8,373,000 | 8,839,000 | 8,842,000 | 8,157,000 | 8,602,000 | 7,618,000 | 5,908,000 | 9,812,000 | 10,399,000 | 10,031,000 | 9,869,000 |
| Total stockholders’ equity | US$ in thousands | -682,000 | -661,000 | -224,000 | 140,000 | 568,000 | 1,063,000 | 1,772,000 | 1,772,000 | 1,414,000 | 918,000 | 796,000 | 234,000 | 430,000 | 229,000 | -79,000 | -20,000 | 703,000 | 838,000 | 1,240,000 | 1,603,000 |
| Debt-to-capital ratio | 1.06 | 1.07 | 1.02 | 0.99 | 0.94 | 0.89 | 0.81 | 0.81 | 0.85 | 0.90 | 0.92 | 0.97 | 0.95 | 0.97 | 1.01 | 1.00 | 0.93 | 0.93 | 0.89 | 0.86 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $11,197,000K ÷ ($11,197,000K + $-682,000K)
= 1.06
The debt-to-capital ratio of Marriott International, Inc. has shown a gradual increase over the last eight quarters, indicating a rising reliance on debt to finance its operations and growth. In the most recent quarter (Q4 2023), the ratio stands at 1.06, reflecting that debt accounts for 106% of the company's capital structure. This suggests that Marriott has more debt than equity in its capital mix, which could potentially increase financial risk and leverage.
The consistent upward trend in the debt-to-capital ratio from Q1 2022 to Q4 2023 may signal that Marriott has been expanding or investing in projects using debt financing. While a higher debt-to-capital ratio can be advantageous for tax savings and leveraging opportunities, it also exposes the company to repayment obligations and interest expenses, particularly in challenging economic conditions.
Overall, the fluctuation and upward trajectory of Marriott's debt-to-capital ratio imply a shift towards a more leveraged capital structure, which investors and stakeholders should monitor closely to assess the company's financial health and risk profile.
Peer comparison
Dec 31, 2023