Marriott International Inc (MAR)

Interest coverage

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	3,781,000	3,763,000	3,954,000	3,863,000	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
Interest expense (ttm)	US$ in thousands	695,000	668,000	635,000	602,000	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
Interest coverage		5.44	5.63	6.23	6.42	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

December 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $3,781,000K ÷ $695,000K
= 5.44

Marriott International Inc's interest coverage ratio fluctuated over the period from March 31, 2020, to December 31, 2024. The interest coverage ratio is a measure of a company's ability to meet its interest obligations with its operating income.

The interest coverage ratio for Marriott International Inc started at a healthy level of 4.04 on March 31, 2020, indicating that the company was generating enough operating income to cover its interest expenses more than four times over.

However, the interest coverage ratio declined significantly by December 31, 2020, and March 31, 2021, indicating a potential strain on the company's ability to meet its interest obligations. The ratio even turned negative by the end of 2020, suggesting that the company's operating income was insufficient to cover its interest expenses.

From June 30, 2021, onwards, there was a gradual improvement in the interest coverage ratio of Marriott International Inc. The ratio consistently increased, reaching a peak of 8.99 on March 31, 2023, which signifies a strong improvement in the company's ability to cover its interest payments.

Overall, the trend in Marriott International Inc's interest coverage ratio indicates that the company faced challenges in meeting its interest obligations in the past, but it has since significantly improved its financial health and ability to service its debt.