Marriot Vacations Worldwide (VAC)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 4.02 | 4.06 | 3.86 | 3.23 | 3.36 |
Marriott Vacations Worldwide has consistently maintained a strong solvency position, as reflected by its solvency ratios.
1. Debt-to-assets ratio: The company has maintained a debt-to-assets ratio of 0.00 across all the years analyzed (2020-2024). This indicates that the company's total debt levels are relatively low compared to its total assets, suggesting a low risk of insolvency.
2. Debt-to-capital ratio: Similar to the debt-to-assets ratio, the debt-to-capital ratio has also remained at 0.00 over the same period. This indicates that the company's debt as a proportion of its total capital (debt + equity) is negligible, further highlighting its robust financial position.
3. Debt-to-equity ratio: The debt-to-equity ratio has also been consistently at 0.00 from 2020 to 2024. This signifies that Marriott Vacations Worldwide has minimal debt relative to its equity, implying a strong financial foundation and lower financial risk.
4. Financial leverage ratio: The financial leverage ratio, which indicates the extent to which a company is using debt to finance its operations, has shown a slight increase over the years. It rose from 3.36 in 2020 to 4.02 in 2024. Despite this increase, the ratio remains at a manageable level, suggesting that Marriott Vacations Worldwide has been maintaining a prudent balance between debt and equity in its capital structure.
Overall, based on the solvency ratios analyzed, Marriott Vacations Worldwide appears to be in a healthy financial position with low debt levels, adequate capital structure, and sustainable leverage, indicating a strong ability to meet its financial obligations and withstand economic challenges.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 2.89 | 4.05 | -24.92 | -17.48 | -18.18 |
Marriot Vacations Worldwide's interest coverage has shown a concerning trend over the years based on the provided data. The interest coverage ratio, which indicates the company's ability to meet its interest obligations, has been negative in the years 2020, 2021, and 2022, suggesting that the company's operating income was insufficient to cover its interest expenses during those periods.
However, the ratio improved significantly in 2023, reaching a positive value of 4.05, indicating that the company's operating income was more than sufficient to cover its interest expenses in that year.
Unfortunately, the trend reversed in 2024, with the interest coverage ratio decreasing to 2.89, although it remained positive. This suggests that while the company's operating income was still able to cover its interest expenses in 2024, the margin of safety decreased compared to the previous year.
Overall, Marriot Vacations Worldwide's interest coverage ratio has experienced volatility, ranging from negative to positive values. Investors and creditors may be concerned about the company's ability to consistently generate enough operating income to cover its interest payments, especially considering the recent fluctuations in the ratio.