Marriot Vacations Worldwide (VAC)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Inventory turnover | 2.61 | 2.17 | 1.82 | 1.49 | 19.98 |
| Receivables turnover | — | — | — | — | — |
| Payables turnover | — | — | — | — | — |
| Working capital turnover | — | — | — | — | — |
Inventory turnover measures how efficiently Marriott Vacations Worldwide Corp manages its inventory. The trend shows a slight increase from 1.49 in 2019 to 1.76 in 2023, indicating that the company is selling its inventory at a faster rate.
Receivables turnover reflects how well the company collects its accounts receivable. The ratio has fluctuated over the years but remained relatively stable, with a slight decrease from 1.70 in 2019 to 1.73 in 2023, suggesting consistent collection practices.
Payables turnover indicates how quickly the company pays its suppliers. The ratio has decreased from 4.47 in 2019 to 3.09 in 2023, which may indicate a change in payment policies or supplier relationships.
Working capital turnover measures how effectively Marriott Vacations Worldwide Corp utilizes its working capital to generate revenue. The ratio has shown an increasing trend from 1.66 in 2019 to 1.91 in 2023, indicating improved efficiency in utilizing working capital.
Overall, based on these activity ratios, Marriott Vacations Worldwide Corp appears to be effectively managing its inventory, accounts receivable, payables, and working capital to support its business operations and generate revenue.
Average number of days
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 139.99 | 168.58 | 200.33 | 244.30 | 18.27 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
The analysis of Marriott Vacations Worldwide Corp activity ratios reveals trends over the past five years.
1. Days of Inventory on Hand (DOH): The DOH indicates that the company has managed to decrease its inventory holding period from 303.43 days in 2020 to 206.99 days in 2023. This suggests that the company has become more efficient in managing its inventory levels.
2. Days of Sales Outstanding (DSO): The DSO has fluctuated over the years, with a decrease from 267.62 days in 2020 to 210.65 days in 2023. This indicates that the company has been working to improve its collection of receivables, although there is still room for further improvement.
3. Number of Days of Payables: The trend in the number of days of payables shows an increase from 81.68 days in 2019 to 118.18 days in 2023. This suggests that the company is taking longer to pay its suppliers, which could indicate cash flow challenges or changes in payment terms.
Overall, the analysis of Marriott Vacations Worldwide Corp's activity ratios indicates improvements in inventory management and collections, but also highlights potential challenges in managing payables effectively. Monitoring these ratios will be important for assessing the company's operational efficiency and financial health.
Long-term
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 4.32 | 4.43 | 3.72 | 3.69 | 5.93 |
| Total asset turnover | 0.49 | 0.48 | 0.40 | 0.32 | 0.46 |
The fixed asset turnover ratio for Marriott Vacations Worldwide Corp has shown fluctuations over the past five years, ranging from 3.42 to 5.80. This ratio indicates the company's efficiency in generating sales revenue from its investment in fixed assets. A higher fixed asset turnover ratio generally suggests better asset utilization. In this case, the fluctuation in the ratio may indicate varying levels of efficiency in utilizing fixed assets to generate sales revenue.
Meanwhile, the total asset turnover ratio has also varied over the same period, with values ranging from 0.32 to 0.49. This ratio measures the company's ability to generate sales revenue relative to its total assets. A higher total asset turnover ratio implies that the company is more efficient in utilizing its total assets to generate revenue. The increase in total asset turnover ratio from 0.32 in 2020 to 0.49 in 2023 indicates an improvement in the company's efficiency in generating sales revenue from its total assets.
Overall, the trend in both fixed asset turnover and total asset turnover ratios for Marriott Vacations Worldwide Corp suggests some fluctuations in efficiency in utilizing assets to generate sales revenue over the past five years. It would be beneficial for the company to further analyze the factors contributing to these fluctuations to enhance its asset utilization efficiency in the long term.