Marriot Vacations Worldwide (VAC)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 2,442,000 | 2,382,000 | 2,496,000 | 2,976,000 | 2,651,000 |
| ROE | 8.93% | 10.66% | 15.67% | 1.65% | -9.66% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $218,000K ÷ $2,442,000K
= 8.93%
Marriott Vacations Worldwide's return on equity (ROE) experienced significant fluctuations over the years. In 2020, the ROE was negative at -9.66%, indicating that the company's net income was insufficient to generate a positive return for its shareholders’ equity.
By the end of 2021, there was a slight improvement with an ROE of 1.65%, although still below an ideal level. The following year, in 2022, the ROE showed a notable increase to 15.67%, signaling a more efficient utilization of shareholder equity to generate profits.
In 2023, the ROE slightly decreased to 10.66% from the previous year, but it remained at a relatively healthy level. By the end of 2024, the ROE further declined to 8.93%, indicating a potential decrease in profitability compared to the previous year.
Overall, Marriott Vacations Worldwide's ROE exhibited a mix of positive and negative trends, with the company showing signs of improving profitability and efficiency in certain years, while also facing challenges in others. It is essential for the company to monitor and manage its ROE effectively to ensure sustainable growth and value creation for its shareholders.