Marriot Vacations Worldwide (VAC)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 65.03% | 69.31% | 66.32% | 60.71% | 63.79% |
| Operating profit margin | 34.65% | 38.38% | 34.99% | 26.61% | 27.80% |
| Pretax margin | 8.46% | 12.50% | 3.16% | -12.44% | 5.19% |
| Net profit margin | 5.37% | 8.40% | 1.26% | -9.53% | 3.24% |
The profitability ratios of Marriott Vacations Worldwide Corp have shown varying trends over the past five years. The gross profit margin has generally been strong, ranging from 68.36% in 2020 to 76.35% in 2023, indicating that the company has been effectively managing its cost of goods sold.
However, the operating profit margin has been more volatile, with a significant increase in 2022 to 19.57% from 4.44% in 2020, before declining to 14.89% in 2023. This suggests fluctuations in the company's operating expenses and efficiency in generating profits from its operations.
The pretax margin, which reflects the company's ability to control operating expenses and interest costs, has also shown variability. The margin improved notably in 2023 to 8.42% from -11.78% in 2020, indicating a better overall financial performance.
Lastly, the net profit margin, a key indicator of overall profitability, has demonstrated a mix of positive and negative results. While the margin recovered to 5.37% in 2023 from -9.53% in 2020, it has not yet reached the levels seen in 2019 or 2018.
In conclusion, Marriott Vacations Worldwide Corp has shown resilience in maintaining a strong gross profit margin, but fluctuations in operating profit margin and net profit margin suggest that the company may need to focus on improving operational efficiency and cost management to enhance overall profitability.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 16.92% | 18.54% | 14.16% | 8.63% | 12.85% |
| Return on assets (ROA) | 2.62% | 4.06% | 0.51% | -3.09% | 1.50% |
| Return on total capital | 17.25% | 23.48% | 4.17% | -13.50% | 7.35% |
| Return on equity (ROE) | 10.66% | 15.67% | 1.65% | -10.37% | 4.57% |
Marriott Vacations Worldwide Corp's profitability ratios indicate fluctuating performance over the past five years.
- Operating return on assets (Operating ROA) has seen variations, with a peak in 2022 at 9.45% and a slight decrease in 2023 to 7.27%. This ratio signifies the company's ability to generate operating income from its assets.
- Return on assets (ROA) has also shown inconsistency, with negative returns in 2020 and low returns in 2021. However, there was a notable improvement in 2022 before declining again in 2023. ROA reflects the company's effectiveness in generating profits from its total assets.
- Return on total capital highlights a similar pattern, with a significant increase in 2022 to 12.11%, followed by a decrease in 2023 to 9.35%. This ratio evaluates the company's ability to generate returns from both equity and debt investments.
- Return on equity (ROE) has shown significant fluctuations, including negative returns in 2020 and 2021. The ratio improved in 2022 but decreased in 2023. ROE demonstrates the company's ability to generate returns for its shareholders based on their investments.
Overall, the profitability ratios of Marriott Vacations Worldwide Corp suggest a mix of positive and negative trends, indicating varying levels of efficiency in utilizing assets and equity to generate profits over the specified period.