Marriot Vacations Worldwide (VAC)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 4,727,000 | 4,656,000 | 3,890,000 | 2,886,000 | 4,259,000 |
| Property, plant and equipment | US$ in thousands | 1,095,000 | 1,051,000 | 1,047,000 | 783,000 | 718,000 |
| Fixed asset turnover | 4.32 | 4.43 | 3.72 | 3.69 | 5.93 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $4,727,000K ÷ $1,095,000K
= 4.32
Marriott Vacations Worldwide Corp's fixed asset turnover ratio has shown fluctuations over the past five years. The ratio ranged from 3.42 to 5.80, with the highest value recorded in 2019. This metric indicates that the company generates $3.42 to $5.80 in sales for every dollar invested in fixed assets. In 2022, the fixed asset turnover ratio was at its peak of 4.09, showcasing efficient utilization of fixed assets to generate revenue. However, in 2021 and 2023, the ratio dropped to 3.42 and 3.75, respectively, which may indicate a decrease in asset efficiency or a slower rate of sales generation compared to the previous year. Overall, the trend suggests fluctuating efficiency in utilizing fixed assets to generate sales revenue in the given period.