Marriot Vacations Worldwide (VAC)
Pretax margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 400,000 | 582,000 | 123,000 | -359,000 | 221,000 |
| Revenue | US$ in thousands | 4,727,000 | 4,656,000 | 3,890,000 | 2,886,000 | 4,259,000 |
| Pretax margin | 8.46% | 12.50% | 3.16% | -12.44% | 5.19% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $400,000K ÷ $4,727,000K
= 8.46%
Marriott Vacations Worldwide Corp's pretax margin has shown fluctuating performance over the past five years. In 2023, the pretax margin stood at 8.42%, demonstrating a decrease from the previous year's level of 12.50%. The positive pretax margin indicates the company's ability to generate earnings before taxes relative to its total revenue. However, the downward trend observed in 2023 compared to 2022 suggests a potential decrease in profitability efficiency. It is important for the company to closely monitor its cost structure and revenue streams to sustain and improve its pretax margin in the future.