Marriot Vacations Worldwide (VAC)
Working capital 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 |
| Total current assets | US$ in thousands | 248,000 | 524,000 | 342,000 | 524,000 | 369,000 |
| Total current liabilities | US$ in thousands | 1,292,000 | 1,320,000 | 1,264,000 | 862,000 | 1,056,000 |
| Working capital turnover | — | — | — | — | — |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $4,727,000K ÷ ($248,000K – $1,292,000K)
= —
Marriott Vacations Worldwide Corp's working capital turnover has shown a fluctuating trend over the past five years. The ratio increased from 1.66 in 2019 to 1.91 in 2023, indicating an improvement in the efficiency of the company's working capital management. A higher working capital turnover suggests that the company is generating more revenue from its working capital, which is a positive sign.
The company's working capital turnover peaked in 2023 at 1.91, reflecting the ability of Marriott Vacations Worldwide Corp to efficiently utilize its current assets to support its revenue generation. This indicates that the company is effectively managing its inventory, accounts receivable, and accounts payable to support its operations.
Overall, the increasing trend in working capital turnover suggests that Marriott Vacations Worldwide Corp has been able to optimize its working capital management over the years, which can lead to improved financial performance and profitability in the long run.