Marriot Vacations Worldwide (VAC)
Return on total capital
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,782,000 | 2,036,000 | 2,026,000 | 1,946,000 | 1,888,000 | 1,690,000 | 1,604,000 | 1,516,000 | 1,420,000 | 1,619,000 | 1,431,000 | 1,303,000 | 1,120,000 | 626,000 | 381,000 | 262,000 | 222,000 | 1,744,000 | 1,810,000 | 1,996,370 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 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 | 3,019,000 | 3,112,000 | 3,264,000 | 3,346,000 |
| Return on total capital | 74.81% | 84.55% | 81.83% | 78.53% | 75.64% | 64.36% | 58.43% | 53.87% | 47.72% | 54.46% | 47.99% | 48.10% | 42.25% | 23.55% | 14.12% | 9.50% | 7.35% | 56.04% | 55.45% | 59.66% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $1,782,000K ÷ ($—K + $2,382,000K)
= 74.81%
Marriott Vacations Worldwide Corp's return on total capital has shown some fluctuations over the past eight quarters, ranging from 9.35% in Q4 2023 to 12.33% in Q1 2023. The company's return on total capital has generally been above 10%, indicating an effectiveness in generating returns from both debt and equity capital employed in its operations. However, there was a slight decline in the most recent quarter.
The trend suggests that Marriott Vacations Worldwide Corp has been efficiently utilizing its capital to generate profits, with variations potentially influenced by changes in business operations, economic conditions, or investment decisions. Further analysis and comparison with industry benchmarks may provide additional insights into the company's performance and competitiveness in the market.