Marriot Vacations Worldwide (VAC)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 37.35% | 38.46% | 41.89% | 37.35% | 25.26% |
| Operating profit margin | 11.01% | 12.42% | 17.05% | 10.64% | 0.10% |
| Pretax margin | 2.60% | 8.42% | 11.50% | 3.26% | -11.78% |
| Net profit margin | 4.39% | 5.37% | 8.47% | 1.26% | -8.87% |
Based on the provided data, Marriott Vacations Worldwide has shown improvements in its profitability ratios over the years.
1. Gross Profit Margin: The company's gross profit margin has steadily increased from 25.26% in 2020 to 37.35% in 2021, reaching a peak of 41.89% in 2022. It slightly dropped to 38.46% in 2023 before stabilizing at 37.35% in 2024. This indicates that the company has been able to efficiently manage its production costs and generate a higher percentage of revenue as gross profit.
2. Operating Profit Margin: Marriott Vacations Worldwide has also demonstrated a positive trend in its operating profit margin, starting at a mere 0.10% in 2020 and consistently increasing to 10.64% in 2021, 17.05% in 2022, and then stabilizing around 11% in 2023 and 2024. This suggests that the company has been successful in controlling its operating expenses and improving operational efficiency.
3. Pretax Margin: The company's pretax margin shows a similar pattern of improvement over the years. After recording a negative margin of -11.78% in 2020, Marriott Vacations Worldwide rebounded to positive margins of 3.26% in 2021, 11.50% in 2022, 8.42% in 2023, and 2.60% in 2024. This indicates that the company's profitability before taxes has been on an upward trajectory.
4. Net Profit Margin: Lastly, Marriott Vacations Worldwide's net profit margin has also shown growth trends. Starting with a negative net profit margin of -8.87% in 2020, the company has achieved positive margins of 1.26% in 2021, 8.47% in 2022, 5.37% in 2023, and 4.39% in 2024. This indicates that the company has been able to increase its profitability after accounting for all expenses, including taxes and interest payments.
Overall, the trend of improving profitability ratios suggests that Marriott Vacations Worldwide has been effectively managing its costs, optimizing its operations, and enhancing its overall financial performance over the years.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 5.58% | 6.06% | 8.16% | 4.31% | 0.03% |
| Return on assets (ROA) | 2.22% | 2.62% | 4.06% | 0.51% | -2.88% |
| Return on total capital | 19.16% | 24.64% | -117.79% | -96.34% | -102.87% |
| Return on equity (ROE) | 8.93% | 10.66% | 15.67% | 1.65% | -9.66% |
Marriot Vacations Worldwide has shown a significant improvement in profitability ratios over the years based on the provided data.
- Operating return on assets (Operating ROA) has seen a substantial increase from 0.03% in December 2020 to 8.16% in December 2022. This indicates that the company has been able to generate more operating income relative to its assets, reflecting operational efficiency and effectiveness.
- Return on assets (ROA) has also grown positively, moving from negative at -2.88% in December 2020 to 2.22% in December 2024. This shows that the company has been able to generate higher net income relative to its total assets over time, signaling improved asset utilization and profitability.
- Return on total capital, despite being negative in the initial years, has shown a remarkable turnaround, reaching 19.16% by December 2024. This indicates that the company has been able to generate sufficient returns to cover not just operating costs but also the cost of capital, a positive sign for investors and lenders.
- Return on equity (ROE) has also shown a positive trend, increasing from -9.66% in December 2020 to 8.93% in December 2024. This improvement signifies that the company has been successful in delivering better returns to its equity shareholders over the years.
Overall, Marriot Vacations Worldwide has demonstrated enhanced profitability performance across these key ratios, indicating improved financial health and operational efficiency.