Marriot Vacations Worldwide (VAC)

Short-term

Turnover ratios

Marriott Vacations Worldwide Corp's activity ratios provide insights into the efficiency of its operations.

- Inventory turnover has been relatively consistent over the quarters, ranging from 1.67 to 1.76, indicating the company's ability to manage its inventory efficiently.
- Receivables turnover shows a decreasing trend from 1.90 in Q1 2023 to 1.73 in Q4 2023, suggesting a potential delay in collecting receivables from customers.
- Payables turnover has fluctuated significantly, with a sharp increase in Q3 2023 followed by a decline in Q4 2023. This may indicate changes in the company's payment terms with suppliers.
- Working capital turnover has also shown variability, with Q1 2023 and Q4 2022 having the highest turnover ratios. This implies that Marriott Vacations Worldwide Corp is effectively using its working capital to generate sales.

Overall, while the company appears to manage its inventory efficiently, there may be opportunities to improve receivables collection and optimize payables management for better working capital turnover.

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Average number of days

Days of inventory on hand (DOH) for Marriott Vacations Worldwide Corp has been relatively stable over the past quarters, ranging from 206.99 days to 218.03 days. This indicates that the company is holding its inventory for an extended period before it is sold, which may tie up capital and increase carrying costs.

Days of sales outstanding (DSO) have also been consistent, fluctuating between 191.87 days and 210.65 days. This suggests that Marriott Vacations Worldwide Corp takes a considerable amount of time to collect payment from its customers after a sale, potentially impacting cash flow and liquidity.

The number of days of payables has shown some variability, with a high of 118.18 days and a low of 66.68 days in the quarters provided. A higher number of days of payables indicates that the company is taking longer to settle its outstanding bills with suppliers, which could help preserve cash but might strain relationships with vendors.

Overall, Marriott Vacations Worldwide Corp's activity ratios reflect a need for potential improvements in managing inventory, collecting receivables more efficiently, and optimizing payable terms to enhance operational efficiency and financial performance.

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Long-term

Marriott Vacations Worldwide Corp's long-term activity ratios indicate the efficiency with which the company utilizes its assets to generate sales.

The fixed asset turnover ratio has been relatively stable in recent quarters, ranging from 3.60 to 4.09. This ratio measures how well the company generates revenue from its fixed assets, such as property and equipment. A higher fixed asset turnover ratio signifies that the company is effectively using its fixed assets to generate sales, which can be indicative of operational efficiency. Marriott's consistent fixed asset turnover ratios suggest that the company is efficiently utilizing its fixed assets to generate revenue.

On the other hand, the total asset turnover ratio has also been consistent over the quarters, with values ranging from 0.44 to 0.50. This ratio measures how efficiently the company generates sales from all its assets, including both fixed and current assets. A higher total asset turnover ratio indicates that the company is effectively using all its assets to generate revenue. Marriott's stable total asset turnover ratios suggest that the company is consistently generating sales relative to its total asset base.

Overall, the relatively stable long-term activity ratios of Marriott Vacations Worldwide Corp indicate that the company is effectively managing its assets to generate revenue, both from its fixed assets and from its total asset base.