Marriott International Inc (MAR)

Interest coverage

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	3,943,000	4,215,000	4,049,000	3,918,000	3,517,000	3,156,000	2,572,000	2,089,000	1,600,000	753,000	608,000	-53,000	-21,000	602,000	989,000	1,576,000	1,993,000	2,011,000	2,064,000	2,607,000
Interest expense (ttm)	US$ in thousands	565,000	527,000	481,000	436,000	403,000	385,000	392,000	406,000	420,000	435,000	441,000	459,000	445,000	428,000	415,000	390,000	394,000	393,000	379,000	362,000
Interest coverage		6.98	8.00	8.42	8.99	8.73	8.20	6.56	5.15	3.81	1.73	1.38	-0.12	-0.05	1.41	2.38	4.04	5.06	5.12	5.45	7.20

December 31, 2023 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $3,943,000K ÷ $565,000K
= 6.98

Based on the data provided, Marriott International, Inc.'s interest coverage ratio has shown a generally positive trend over the past eight quarters. The interest coverage ratio measures the company's ability to meet its interest payments on outstanding debt with its earnings before interest and taxes (EBIT).

In Q1 2022, the interest coverage ratio was at 5.87, indicating that Marriott's EBIT was 5.87 times greater than its interest expenses for that quarter. Subsequently, there was a significant improvement in the ratio, reaching a peak of 9.69 in Q1 2023, which shows a strong ability to cover interest payments.

Overall, the interest coverage ratios have been consistently above 5.0 throughout the eight quarters, suggesting that Marriott has been comfortably able to meet its interest obligations using its operating earnings. The company's ability to generate sufficient earnings to cover its interest expenses indicates financial stability and a lower risk of default on its debt obligations.