Marriott International Inc (MAR)
Interest coverage
| 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 |
| Interest expense | US$ in thousands | 695,000 | 565,000 | 403,000 | 420,000 | 445,000 |
| Interest coverage | 5.42 | 6.98 | 8.73 | 3.81 | -0.05 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $3,767,000K ÷ $695,000K
= 5.42
Marriott International Inc's interest coverage ratio has shown a significant improvement over the years based on the provided data. The interest coverage ratio was notably negative at -0.05 as of December 31, 2020, indicating the company's operating income was insufficient to cover its interest expenses at that time. However, the situation improved significantly in the subsequent years. As of December 31, 2021, the interest coverage ratio increased to 3.81, reflecting a better ability to cover interest obligations with operating income. This improvement continued in the following years, with the ratios reaching 8.73, 6.98, and 5.42 as of December 31, 2022, 2023, and 2024, respectively.
The upward trend in the interest coverage ratio indicates that Marriott International Inc's ability to meet its interest payments from operating income has strengthened over the years. This positive development suggests a healthier financial position and reduced financial risk related to debt repayment obligations. However, it is essential for the company to monitor and maintain this trend to ensure continued stability and sustainability in its financial operations.
Peer comparison
Dec 31, 2024