Marriot Vacations Worldwide (VAC)
Pretax margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 129,000 | 398,000 | 531,000 | 127,000 | -340,000 |
| Revenue | US$ in thousands | 4,967,000 | 4,727,000 | 4,617,000 | 3,890,000 | 2,886,000 |
| Pretax margin | 2.60% | 8.42% | 11.50% | 3.26% | -11.78% |
December 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $129,000K ÷ $4,967,000K
= 2.60%
Based on the data provided, Marriot Vacations Worldwide's pretax margin has shown fluctuations over the past five years.
Starting at a negative pretax margin of -11.78% on December 31, 2020, the company improved its performance significantly by achieving a pretax margin of 3.26% by December 31, 2021. This indicates a turnaround in profitability, moving from a loss to a modest positive margin within a year.
The subsequent years displayed further improvement, with the pretax margin increasing to 11.50% by December 31, 2022, showcasing a notable growth in profitability. However, by December 31, 2023, the pretax margin slightly decreased to 8.42%, indicating some fluctuations in profitability.
By December 31, 2024, the pretax margin dropped further to 2.60%, signaling a decrease in profitability compared to the previous year. This downward trend suggests potential challenges or changes in the company's financial performance that may require management's attention.
Overall, Marriot Vacations Worldwide has shown a mixed performance in terms of pretax margin over the past five years, with fluctuations in profitability levels. Continuous monitoring and strategic decisions may be necessary to sustain and improve the company's profitability in the future.