Marriott International Inc (MAR)

Financial leverage ratio

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Total assets	US$ in thousands	26,182,000	26,209,000	25,740,000	25,756,000	25,674,000	25,267,000	25,087,000	24,863,000	24,815,000	24,763,000	24,615,000	25,238,000	25,553,000	24,506,000	24,504,000	24,369,000	24,701,000	25,148,000	25,680,000	25,549,000
Total stockholders’ equity	US$ in thousands	-2,992,000	-2,421,000	-2,091,000	-1,616,000	-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
Financial leverage ratio		—	—	—	—	—	—	—	177.59	43.69	23.30	13.89	14.24	18.07	26.69	30.78	104.14	57.44	109.82	—	—

December 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $26,182,000K ÷ $-2,992,000K
= —

The financial leverage ratio measures the extent to which a company relies on debt financing to support its operations and growth. A higher ratio indicates a higher level of debt relative to equity, which can amplify returns but also increase financial risk.

Looking at Marriott International Inc's financial leverage ratio over time, we can observe fluctuations in the ratio. The ratio was not available for the first two quarters of 2020 but then increased significantly by September 2020, reaching 109.82. This spike may indicate a temporary increase in debt levels or a decrease in equity during that period.

Subsequently, the financial leverage ratio decreased steadily throughout 2021 and the first half of 2022, indicating a reduction in the company's reliance on debt financing and a strengthening of its equity position. However, there was a slight uptick in the ratio by September 2022, suggesting a potential increase in debt levels at that time.

By the end of 2022, the financial leverage ratio had increased to 43.69, signaling a higher level of debt relative to equity compared to earlier periods. The ratio then surged dramatically to 177.59 by March 2023, reflecting a significant increase in leverage, which could pose heightened financial risks for the company.

It is worth noting that there is limited data available beyond March 2023, as the financial leverage ratio was not provided for the subsequent periods. This lack of data makes it challenging to assess the company's leverage position and evaluate any potential trends in more recent periods.

Overall, fluctuations in Marriott International Inc's financial leverage ratio over the disclosed periods suggest varying levels of debt and equity utilization, highlighting the importance of carefully managing the company's capital structure to maintain a healthy balance between debt and equity financing.