Marriot Vacations Worldwide (VAC)
Operating profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 547,000 | 587,000 | 787,000 | 414,000 | 3,000 |
| Revenue | US$ in thousands | 4,967,000 | 4,727,000 | 4,617,000 | 3,890,000 | 2,886,000 |
| Operating profit margin | 11.01% | 12.42% | 17.05% | 10.64% | 0.10% |
December 31, 2024 calculation
Operating profit margin = Operating income ÷ Revenue
= $547,000K ÷ $4,967,000K
= 11.01%
Marriot Vacations Worldwide's operating profit margin has shown fluctuation over the years based on the provided data. In December 31, 2020, the operating profit margin was very low at 0.10%, indicating that the company's profitability from its core operations was minimal.
However, there was a substantial improvement in the operating profit margin by December 31, 2021, reaching 10.64%. This significant increase suggests that the company was able to generate higher profits relative to its operating costs.
By December 31, 2022, the operating profit margin further improved to 17.05%, indicating an even stronger performance in converting revenue into profits. This could suggest improved operational efficiency and cost management by Marriot Vacations Worldwide.
In December 31, 2023, the operating profit margin slightly decreased to 12.42%, although it was still higher than the baseline year of 2020. This could be due to various factors such as changes in costs, revenue mix, or market conditions.
By December 31, 2024, the operating profit margin was 11.01%, showing a slight decline from the previous year. While the margin decreased, it was still relatively healthy compared to the initial years analyzed.
Overall, the trend in Marriot Vacations Worldwide's operating profit margin indicates fluctuations but with an overall improvement from the baseline year. It is important for the company to continue monitoring and managing its operating costs effectively to maintain and potentially further enhance profitability in the future.