Marriot Vacations Worldwide (VAC)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 1,638,000 | 1,787,000 | 1,361,000 | 768,000 | 1,184,000 |
| Total assets | US$ in thousands | 9,680,000 | 9,639,000 | 9,613,000 | 8,898,000 | 9,214,000 |
| Operating ROA | 16.92% | 18.54% | 14.16% | 8.63% | 12.85% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $1,638,000K ÷ $9,680,000K
= 16.92%
Marriott Vacations Worldwide Corp's operating return on assets (operating ROA) has fluctuated over the past five years. In 2023, the operating ROA was 7.27%, a decrease from 9.45% in 2022. This decline may indicate a decrease in the company's ability to generate operating income from its assets compared to the previous year.
Looking back further, the operating ROA was 5.92% in 2021, which was lower than in 2022. However, there was a significant improvement in operating ROA in 2022 compared to 2020 when it was only 1.44%.
Interestingly, the operating ROA in 2019 was the same as in 2023 at 7.27%. This suggests some consistency in the company's ability to generate operating income from its assets over the span of these two years.
Overall, fluctuations in operating ROA over the past five years may indicate varying levels of efficiency in utilizing assets to generate operating income. Further analysis of the company's operating performance and asset management strategies may be necessary to understand the reasons behind these fluctuations.