Marriott International Inc (MAR)

Solvency ratios

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
Debt-to-assets ratio 0.44 0.43 0.41 0.41 0.37 0.35 0.32 0.31 0.32 0.34 0.36 0.36 0.33 0.34 0.30 0.23 0.39 0.42 0.40 0.40
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
Debt-to-equity ratio 72.64 16.28 8.21 4.40 4.40 5.76 9.12 11.10 37.79 18.97 37.56 13.96 12.41 8.09 6.16
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 35.63 29.61 20.08 15.44

The solvency ratios of Marriott International, Inc. provide insights into the company's ability to meet its long-term financial obligations.

1. Debt-to-assets ratio:
The debt-to-assets ratio measures the proportion of the company's assets financed by debt. Marriott's debt-to-assets ratio has been relatively stable over the past eight quarters, ranging between 0.36 to 0.47. This indicates that, on average, around 43% to 47% of Marriott's assets are funded by debt. The slight increase from Q1 2023 to Q4 2023 suggests a slightly higher reliance on debt to finance its assets.

2. Debt-to-capital ratio:
The debt-to-capital ratio indicates the percentage of the company's capitalization that is financed by debt. Marriott's debt-to-capital ratio has shown an increasing trend from 0.83 in Q2 2022 to 1.06 in Q4 2023. This signifies a higher proportion of debt in its capital structure, reaching 106% in Q4 2023. A rising trend in this ratio may indicate potential financial risk due to increased leverage.

3. Debt-to-equity ratio:
The debt-to-equity ratio reflects the extent to which the company's operations are funded by debt versus equity. Marriott's debt-to-equity ratio demonstrates a substantial increase from 4.96 in Q1 2022 to 76.12 in Q1 2023. This surge indicates a significant shift towards a higher reliance on debt to finance its operations during Q1 2023.

4. Financial leverage ratio:
The financial leverage ratio signifies the company's level of financial risk by comparing its total assets to shareholder equity. Marriott's financial leverage ratio has been on an upward trajectory, increasing from 13.89 in Q2 2022 to 177.59 in Q1 2023. This substantial rise indicates a significant increase in financial risk during Q1 2023, potentially due to higher debt levels and reduced equity.

Overall, the analysis of Marriott International, Inc.'s solvency ratios suggests a mixed picture. While the debt-to-assets ratio remained relatively stable, indicating consistent debt levels, the increasing trend in the debt-to-capital and financial leverage ratios, as well as the significant spike in the debt-to-equity ratio in Q1 2023, raise concerns about the company's growing financial risk and dependency on debt financing.


Coverage ratios

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
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

Based on the provided data, Marriott International, Inc.'s interest coverage ratio has shown a consistent upward trend throughout the quarters of 2022 and 2023. The interest coverage ratio measures the company's ability to meet its interest payments on outstanding debt with its operating income.

The interest coverage ratio for Q4 2023 stands at 7.35, which indicates that Marriott's operating income is 7.35 times greater than its interest expenses for that quarter. This implies that the company is comfortably able to cover its interest obligations using its operating profits.

Furthermore, the consistent improvement in the interest coverage ratio from 5.87 in Q1 2022 to 7.35 in Q4 2023 reflects the company's strengthening financial position and ability to generate sufficient earnings to service its debt. This positive trend suggests that Marriott International, Inc. is effectively managing its interest expenses and is in a sound financial position to meet its debt obligations.

Overall, the increasing trend in the interest coverage ratio indicates that Marriott International, Inc. has been successful in maintaining solid financial health and managing its debt efficiently over the quarters analyzed. This trend is a positive indicator for investors and creditors as it signifies the company's ability to meet its interest payments comfortably.


See also:

Marriott International Inc Solvency Ratios (Quarterly Data)