Marriot Vacations Worldwide (VAC)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 218,000 | 254,000 | 391,000 | 49,000 | -256,000 |
| Total assets | US$ in thousands | 9,808,000 | 9,680,000 | 9,639,000 | 9,613,000 | 8,898,000 |
| ROA | 2.22% | 2.62% | 4.06% | 0.51% | -2.88% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $218,000K ÷ $9,808,000K
= 2.22%
Based on the data provided, Marriot Vacations Worldwide's return on assets (ROA) has shown fluctuations over the period from December 31, 2020, to December 31, 2024.
In December 31, 2020, the company had a negative ROA of -2.88%, indicating that the company's assets were not effectively utilized to generate profits. However, by December 31, 2021, the ROA improved significantly to 0.51%, suggesting a better utilization of assets to generate profits.
The trend continued to improve in December 31, 2022, with a notable increase in ROA to 4.06%, indicating that the company was more efficient in generating profits from its assets. However, the ROA decreased slightly in December 31, 2023, to 2.62%, but remained relatively positive.
Finally, by December 31, 2024, the ROA was recorded at 2.22%, showing a slight decrease from the previous year but still indicating that Marriot Vacations Worldwide continues to generate profits from its assets, although the rate is lower than in December 31, 2022.
Overall, the positive trend in ROA over the years suggests an improvement in the company's efficiency in generating profits relative to its asset base. This indicates that Marriot Vacations Worldwide has been successful in utilizing its assets effectively to drive profitability, with some fluctuations in the performance over the years.