Marriot Vacations Worldwide (VAC)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 468,000 | 587,000 | -2,940,000 | -2,867,000 | -2,727,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 2,442,000 | 2,382,000 | 2,496,000 | 2,976,000 | 2,651,000 |
| Return on total capital | 19.16% | 24.64% | -117.79% | -96.34% | -102.87% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $468,000K ÷ ($—K + $2,442,000K)
= 19.16%
Marriot Vacations Worldwide's return on total capital has fluctuated significantly over the years based on the provided data. The company experienced negative returns on total capital in the years 2020, 2021, and 2022, with figures ranging from -102.87% to -117.79%. These negative returns indicate that the company's capital investments did not generate sufficient profits during those years to cover the cost of the capital itself.
However, there was a notable turnaround in the years 2023 and 2024, with positive returns on total capital reported at 24.64% and 19.16%, respectively. These positive figures suggest that Marriot Vacations Worldwide's capital investments started to generate returns that exceeded the cost of capital, indicating improved financial performance in those years.
Overall, the data reflects a volatile trend in Marriot Vacations Worldwide's return on total capital, with significant improvements in recent years following a period of negative returns. Investors and stakeholders should continue to monitor the company's capital efficiency and profitability to assess its financial health and sustainability.