Marriot Vacations Worldwide (VAC)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 4,967,000 | 4,727,000 | 4,617,000 | 3,890,000 | 2,886,000 |
| Total current assets | US$ in thousands | 4,090,000 | 3,936,000 | 4,004,000 | 3,846,000 | 3,867,000 |
| Total current liabilities | US$ in thousands | 1,301,000 | 1,292,000 | 1,320,000 | 1,264,000 | 862,000 |
| Working capital turnover | 1.78 | 1.79 | 1.72 | 1.51 | 0.96 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $4,967,000K ÷ ($4,090,000K – $1,301,000K)
= 1.78
Marriott Vacations Worldwide's working capital turnover has shown a positive trend over the past five years, increasing from 0.96 in December 2020 to 1.78 in December 2024. This indicates that the company has become more efficient in utilizing its working capital to generate revenue. A higher working capital turnover ratio signifies that Marriott Vacations Worldwide is able to convert its working capital into sales more frequently, reflecting effective management of its current assets and liabilities. This improvement suggests that the company has optimized its working capital management practices, which can lead to enhanced liquidity and profitability. Overall, the increasing trend in working capital turnover ratio reflects positive operational efficiency for Marriott Vacations Worldwide in recent years.