Marriot Vacations Worldwide (VAC)
Pretax 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) (ttm) | US$ in thousands | 238,000 | 243,000 | 211,000 | 303,000 | 350,000 | 424,000 | 575,000 | 613,000 | 575,000 | 507,000 | 396,000 | 253,000 | 127,000 | 33,000 | -97,000 | -213,000 | -340,000 | -207,000 | -132,000 | 23,000 |
| 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 |
| Pretax margin | 4.79% | 5.03% | 4.48% | 6.37% | 7.40% | 9.00% | 12.04% | 12.88% | 12.38% | 11.10% | 9.07% | 6.05% | 3.26% | 0.93% | -3.10% | -8.08% | -11.78% | -6.30% | -3.50% | 0.53% |
December 31, 2024 calculation
Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $238,000K ÷ $4,967,000K
= 4.79%
Marriott Vacations Worldwide's pretax margin experienced fluctuations over the observational period from March 31, 2020, to December 31, 2024. The company started with a marginal pretax margin of 0.53% in March 2020, indicating that for every dollar of revenue generated, 0.53 cents were left as pre-tax profit. Subsequently, the pretax margin turned negative in June 2020 and continued to decline until December 2022, reaching its lowest point of -11.78%.
However, the trend reversed from March 2023 onwards, with the pretax margin showing a positive trajectory. The pretax margin improved steadily until June 2023, peaking at 12.04%. Although there was a slight dip in September 2023 and December 2023, the margins remained above 7%.
In the latter part of the period, the pretax margin showed some fluctuation, hovering around the 5% mark. Specifically, at the end of December 2024, the pretax margin stood at 4.79%. Overall, the trend indicates that Marriott Vacations Worldwide has successfully transitioned from negative to positive pretax margins, demonstrating an improving profitability outlook.