Marriot Vacations Worldwide (VAC)
Working capital turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 4,967,000 | 4,834,000 | 4,715,000 | 4,753,000 | 4,727,000 | 4,709,000 | 4,775,000 | 4,761,000 | 4,644,000 | 4,568,000 | 4,368,000 | 4,183,000 | 3,890,000 | 3,537,000 | 3,134,000 | 2,635,000 | 2,886,000 | 3,284,000 | 3,774,000 | 4,362,000 |
| Total current assets | US$ in thousands | 4,090,000 | 4,043,000 | 3,778,000 | 3,945,000 | 3,936,000 | 3,734,000 | 3,725,000 | 3,755,000 | 4,004,000 | 3,601,000 | 3,620,000 | 3,607,000 | 3,846,000 | 3,872,000 | 4,721,000 | 3,951,000 | 3,867,000 | 3,974,000 | 3,979,000 | 4,222,000 |
| Total current liabilities | US$ in thousands | 1,301,000 | 1,180,000 | 1,150,000 | 1,296,000 | 1,292,000 | 1,161,000 | 1,122,000 | 1,210,000 | 1,320,000 | 1,157,000 | 1,123,000 | 1,280,000 | 1,264,000 | 1,708,000 | 948,000 | 1,216,000 | 862,000 | 1,136,000 | 774,000 | 838,000 |
| Working capital turnover | 1.78 | 1.69 | 1.79 | 1.79 | 1.79 | 1.83 | 1.83 | 1.87 | 1.73 | 1.87 | 1.75 | 1.80 | 1.51 | 1.63 | 0.83 | 0.96 | 0.96 | 1.16 | 1.18 | 1.29 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $4,967,000K ÷ ($4,090,000K – $1,301,000K)
= 1.78
The working capital turnover of Marriot Vacations Worldwide has shown fluctuations over the past few years. The ratio measures how efficiently the company is able to utilize its working capital to generate sales.
From March 31, 2020, to September 30, 2021, the working capital turnover decreased from 1.29 to 0.83, indicating a decrease in the company's ability to generate sales relative to its working capital. This could suggest potential inefficiencies in managing its short-term assets and liabilities.
However, starting from March 31, 2022, the working capital turnover began to improve, reaching a peak of 1.87 on multiple occasions throughout 2023 and 2024. This improvement suggests that Marriot Vacations Worldwide became more efficient in utilizing its working capital to generate sales during this period.
Overall, the trend in working capital turnover ratios reflects fluctuations in the company's efficiency in managing its working capital and generating sales. Further analysis of the company's financial performance and operational efficiency would be needed to fully understand the factors influencing these changes in the working capital turnover ratio.