Marriot Vacations Worldwide (VAC)
Operating profit margin
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 1,298,000 | 1,301,000 | 1,207,000 | 1,888,000 | 1,928,000 | 1,982,000 | 1,414,000 | 865,000 | 831,000 | 743,000 | 631,000 | 461,000 | 317,000 | 217,000 | 50,000 | -74,000 | -209,000 | -78,000 | -7,000 | 149,000 |
| 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 |
| Operating profit margin | 26.13% | 26.91% | 25.60% | 39.72% | 40.79% | 42.09% | 29.61% | 18.17% | 17.89% | 16.27% | 14.45% | 11.02% | 8.15% | 6.14% | 1.60% | -2.81% | -7.24% | -2.38% | -0.19% | 3.42% |
December 31, 2024 calculation
Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $1,298,000K ÷ $4,967,000K
= 26.13%
Marriot Vacations Worldwide's operating profit margin has displayed significant fluctuations over the reported periods. The operating profit margin, which represents the percentage of revenue turned into profit after accounting for operational expenses, started at a modest 3.42% on March 31, 2020. However, it deteriorated in the following quarters, reaching negative values, indicating that the operational expenses exceeded the operating profit generated.
From June 30, 2021, there was a noticeable turnaround in the operating profit margin, with consecutive quarters showing improvements. The margins started to recover positively, with values climbing steadily to 26.13% by December 31, 2024. This upward trend suggests that Marriot Vacations Worldwide was able to effectively manage its operational costs and enhance its profitability over the observation period.
The operating profit margin reached its peak at 42.09% on September 30, 2023, signifying a strong performance in converting revenue into operating profit. The overall trend of the operating profit margin indicates a recovery from a challenging period to a more profitable position for Marriot Vacations Worldwide. It is vital for the company to maintain this positive trajectory to ensure sustained profitability and financial health.