Marriot Vacations Worldwide (VAC)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 513,000 | 557,000 | 381,000 | 454,000 | 494,000 | 548,000 | 806,000 | 865,000 | 831,000 | 776,000 | 664,000 | 533,000 | 414,000 | 314,000 | 186,000 | 44,000 | 3,000 | 129,000 | 271,000 | 443,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 2,442,000 | 2,419,000 | 2,372,000 | 2,379,000 | 2,382,000 | 2,408,000 | 2,476,000 | 2,478,000 | 2,496,000 | 2,626,000 | 2,745,000 | 2,814,000 | 2,976,000 | 2,973,000 | 2,982,000 | 2,709,000 | 2,651,000 | 2,658,000 | 2,699,000 | 2,759,000 |
| Return on total capital | 21.01% | 23.03% | 16.06% | 19.08% | 20.74% | 22.76% | 32.55% | 34.91% | 33.29% | 29.55% | 24.19% | 18.94% | 13.91% | 10.56% | 6.24% | 1.62% | 0.11% | 4.85% | 10.04% | 16.06% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $513,000K ÷ ($—K + $2,442,000K)
= 21.01%
Marriot Vacations Worldwide's return on total capital has displayed fluctuations over the past few years, indicating varying levels of efficiency in generating returns from its invested capital.
The return on total capital was relatively stable in 2020, with a noticeable decline from 16.06% in March to 0.11% by December. This significant decrease could be a cause for concern as it may suggest a decrease in the company's ability to generate profits from its total capital.
In 2021, there was a gradual improvement in the return on total capital from 1.62% in March to 13.91% by December, indicating a potential recovery in the profitability and efficiency of capital utilization for the company.
The return on total capital significantly improved in 2022, reaching a high of 33.29% by the end of December. This substantial increase suggests that Marriot Vacations Worldwide may have implemented effective strategies to enhance its returns on invested capital.
However, there was a slight decline in the return on total capital in 2023 and 2024, with values ranging between 16.06% and 23.03%. While these values are relatively strong, they indicate a slight decrease in the company's efficiency in generating returns from its total capital compared to the peak in 2022.
Overall, Marriot Vacations Worldwide's return on total capital has shown both positive and negative trends, highlighting the importance of monitoring and managing the company's capital allocation and operational efficiency to maximize shareholder value.