Marriot Vacations Worldwide (VAC)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 411,000 | 586,000 | 124,000 | -358,000 | 222,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 2,382,000 | 2,496,000 | 2,976,000 | 2,651,000 | 3,019,000 |
| Return on total capital | 17.25% | 23.48% | 4.17% | -13.50% | 7.35% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $411,000K ÷ ($—K + $2,382,000K)
= 17.25%
Marriott Vacations Worldwide Corp's return on total capital has varied over the past five years. In 2023, the return on total capital was 9.35%, which represents a decrease from the previous year's 12.11%. The company's return on total capital was lower in 2021 at 7.62% compared to 2020 where it was 1.85%. Prior to that, in 2019, the return on total capital was 9.43%.
Overall, the fluctuation in Marriott Vacations Worldwide Corp's return on total capital indicates varying levels of efficiency in generating profits relative to the total capital employed by the company over the years. Further analysis would be required to understand the factors driving these changes and to assess the company's performance and profitability in more detail.