Marriot Vacations Worldwide (VAC)

Liquidity ratios

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
Current ratio 3.14 3.43 3.29 3.04 3.05 3.22 3.32 3.10 3.03 3.11 3.22 2.82 3.04 2.27 4.98 3.25 4.49 3.50 5.14 5.04
Quick ratio 0.15 0.17 0.18 0.18 0.44 0.23 0.22 0.25 0.40 0.25 0.29 0.28 0.27 0.26 1.38 0.53 0.61 0.58 0.73 0.78
Cash ratio 0.15 0.17 0.18 0.18 0.44 0.23 0.22 0.25 0.40 0.25 0.29 0.28 0.27 0.26 1.38 0.53 0.61 0.58 0.73 0.78

Marriot Vacations Worldwide's current ratio has been fluctuating over the years, ranging from a low of 2.27 in September 2021 to a high of 5.14 in June 2020. The current ratio indicates the company's ability to cover its short-term obligations with its current assets. Generally, a current ratio above 1 is considered healthy, as it suggests the company can easily pay off its current liabilities. Marriot Vacations Worldwide's current ratios have mostly been above 2, indicating a strong ability to meet short-term obligations.

In terms of the quick ratio, which measures the company's ability to meet short-term liabilities with its most liquid assets, Marriot Vacations Worldwide has shown variability in its performance. The quick ratio has fluctuated between 0.15 and 1.38 over the past years. A quick ratio of 1 is typically considered satisfactory, as it suggests the company can cover its current liabilities without relying on the sale of inventory. Marriot Vacations Worldwide's quick ratio has generally been above 0.2, although it dipped below 0.2 in several quarters, indicating a slightly weaker ability to meet short-term obligations without relying on inventory or assets that may take longer to convert to cash.

The cash ratio, which is the most conservative liquidity metric, measures a company's ability to cover its current liabilities with its cash and cash equivalents. Marriot Vacations Worldwide's cash ratio has mirrored its quick ratio trend, indicating the company's ability to meet short-term obligations directly from its cash reserves. The cash ratio has ranged from 0.15 to 1.38, with most values hovering around 0.2 to 0.4. This suggests that Marriot Vacations Worldwide maintains a reasonable level of cash to cover its short-term liabilities, although there have been fluctuations over the years.

Additional liquidity measure

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
Cash conversion cycle days 93.74 94.95 79.24 85.57 94.34 106.71 86.53 89.78 90.36 92.15 98.40 100.02 107.69 115.78 138.08 141.91 128.44 121.72 113.43 105.53

The cash conversion cycle for Marriot Vacations Worldwide has shown fluctuations over the period from March 31, 2020, to December 31, 2024. The cash conversion cycle measures the amount of time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.

From March 31, 2020, to March 31, 2021, the cash conversion cycle steadily increased from 105.53 days to 141.91 days. This suggests that the company was taking longer to convert its resources into cash during that period. However, from June 30, 2021, to December 31, 2024, the cash conversion cycle demonstrated a more favorable trend, decreasing from 138.08 days to 93.74 days.

The analysis indicates that Marriot Vacations Worldwide may have improved its management of inventory, accounts receivable, and accounts payable, leading to a more efficient cash conversion cycle in the latter part of the period. A decreasing cash conversion cycle signifies that the company is able to generate cash more quickly from its operations, which can be a positive indicator of financial health and operational efficiency.