Marriot Vacations Worldwide (VAC)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 254,000 | 391,000 | 49,000 | -275,000 | 138,000 |
| Total assets | US$ in thousands | 9,680,000 | 9,639,000 | 9,613,000 | 8,898,000 | 9,214,000 |
| ROA | 2.62% | 4.06% | 0.51% | -3.09% | 1.50% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $254,000K ÷ $9,680,000K
= 2.62%
Marriott Vacations Worldwide Corp's return on assets (ROA) has shown fluctuations over the past five years. In 2023, the ROA decreased to 2.62% from 4.06% in 2022, indicating a decline in the company's ability to generate profits from its assets. Despite this decrease, the ROA in 2023 remains positive, signifying that the company is still generating a return on its assets.
Compared to 2021, where the ROA was 0.51%, the significant improvement in 2022 suggests that the company was more efficient in utilizing its assets to generate profits. However, the ROA in 2020 was negative at -3.09%, indicating that the company incurred losses relative to its assets during that period.
The positive ROA in 2019 at 1.50% indicates that Marriott Vacations Worldwide Corp was able to generate a reasonable return on its assets that year. Overall, while there have been fluctuations in the ROA over the past five years, it is essential for the company to focus on improving asset efficiency to enhance profitability and shareholder value in the future.