Marriot Vacations Worldwide (VAC)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 2,382,000 | 2,496,000 | 2,976,000 | 2,651,000 | 3,019,000 |
| ROE | 10.66% | 15.67% | 1.65% | -10.37% | 4.57% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $254,000K ÷ $2,382,000K
= 10.66%
Marriott Vacations Worldwide Corp's return on equity (ROE) has exhibited fluctuations over the past five years. In 2023, the ROE was reported at 10.66%, representing a decrease from the previous year's ROE of 15.67%. Despite the decline, the current ROE still indicates that the company generated a profit of 10.66% on shareholders' equity for the year.
Looking back at the trend, the company's ROE was notably low in 2020, at -10.37%, reflecting a period of negative profitability relative to shareholders' equity. However, Marriott Vacations Worldwide Corp managed to improve its ROE significantly in 2021 to 1.65%, signaling a recovery in profitability.
In 2019, the ROE stood at 4.57%, showing a moderate return on equity for that year. Overall, the trend in ROE for Marriott Vacations Worldwide Corp suggests variability in its profitability performance over the years, with ups and downs observed in the company's ability to generate returns for its shareholders based on the equity invested.
Further analysis of the factors influencing Marriott Vacations Worldwide Corp's ROE, such as profit margins, asset turnover, and financial leverage, would provide additional insights into the company's financial performance and its effectiveness in utilizing shareholders' equity to generate profits.