Marriot Vacations Worldwide (VAC)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | 4.23 | 4.59 | 4.07 | 3.39 | 2.84 |
| Receivables turnover | — | — | — | — | — |
| Payables turnover | — | — | — | — | — |
| Working capital turnover | 1.78 | 1.79 | 1.72 | 1.51 | 0.96 |
Marriott Vacations Worldwide's inventory turnover has shown a consistent improvement over the years, increasing from 2.84 in 2020 to 4.23 in 2024, indicating that the company is managing its inventory more efficiently.
The receivables turnover, which measures how quickly the company collects outstanding receivables, is not provided in the data, suggesting that the company may not have a significant amount of accounts receivable or that the data is not available.
Similarly, payables turnover information is not available, indicating that the data for how quickly the company pays its suppliers is not provided or not significant enough to be highlighted.
The working capital turnover has been relatively stable over the years, ranging from 0.96 in 2020 to 1.79 in 2023, indicating that the company is generating revenue relative to its working capital at a consistent rate. This stability suggests that Marriott Vacations Worldwide is effectively utilizing its working capital to generate sales.
Average number of days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 86.21 | 79.55 | 89.79 | 107.69 | 128.44 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
Marriott Vacations Worldwide has shown a decreasing trend in Days of Inventory on Hand (DOH) over the years, indicating that the company is managing its inventory more efficiently. The DOH decreased from 128.44 days on December 31, 2020, to 86.21 days on December 31, 2024. This suggests that the company is able to sell its inventory faster and is holding less inventory on hand, which can lead to cost savings and improved cash flow.
On the other hand, there is insufficient information provided for Days of Sales Outstanding (DSO) and Number of Days of Payables to analyze the company's efficiency in collecting receivables and managing payables. The lack of data for these ratios makes it difficult to assess the company's performance in these areas.
Overall, based on the information provided, Marriott Vacations Worldwide appears to be effectively managing its inventory, which is a positive sign for its operational efficiency. However, a more comprehensive analysis including DSO and payables turnover would provide a more complete picture of the company's efficiency in managing its working capital.
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | — | — | 3.72 | 3.42 | 3.13 |
| Total asset turnover | 0.51 | 0.49 | 0.48 | 0.40 | 0.32 |
Marriot Vacations Worldwide's Fixed Asset Turnover has shown a consistent upward trend over the years, increasing from 3.13 in 2020 to 3.42 in 2021 and further to 3.72 in 2022. However, data is missing for 2023 and 2024. This ratio indicates that the company generates more revenue relative to its investment in fixed assets each year.
In terms of Total Asset Turnover, Marriot Vacations Worldwide has also demonstrated a positive trajectory, with the ratio improving from 0.32 in 2020 to 0.51 in 2024. This suggests that the company is utilizing its total assets more efficiently to generate sales over the years.
Overall, the upward trends in both Fixed Asset Turnover and Total Asset Turnover ratios reflect positively on Marriot Vacations Worldwide's ability to efficiently manage its assets to drive revenue growth and operational effectiveness. It indicates the company's potential for achieving higher returns on its asset investments.