Marriot Vacations Worldwide (VAC)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| 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 | 4.06 | 3.86 | 3.23 | 3.36 | 3.05 |
Marriott Vacations Worldwide Corp's solvency ratios show a consistent trend over the past five years. The debt-to-assets ratio has been increasing from 0.44 in 2019 to 0.53 in 2023, indicating that the company's proportion of debt relative to its total assets has been rising. The debt-to-capital ratio and debt-to-equity ratio also show a similar trend, increasing steadily over the years, with the debt-to-equity ratio reaching 2.16 in 2023. These ratios suggest that Marriott Vacations Worldwide Corp is relying more on debt financing compared to its capital or equity.
The financial leverage ratio, which measures the extent to which the company is using debt to finance its operations, has also been on the rise, increasing from 3.05 in 2019 to 4.06 in 2023. This indicates that the company's financial leverage has been increasing, potentially exposing it to higher financial risk.
Overall, the solvency ratios of Marriott Vacations Worldwide Corp suggest a growing reliance on debt to fund its operations and investments, which may impact the company's financial stability and flexibility in the long run. Investors and stakeholders may need to closely monitor the company's debt management strategies and overall financial health.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 37.36 | 146.50 | 124.00 | -358.00 | 222.00 |
Marriott Vacations Worldwide Corp's interest coverage ratio has fluctuated over the past five years. The ratio was 4.86 in 2023, indicating the company generated earnings before interest and taxes (EBIT) that were 4.86 times higher than its interest expenses for that year. This suggests the company had a comfortable cushion to cover its interest payments.
In 2022, the interest coverage ratio improved significantly to 7.72, reflecting a stronger ability to meet its interest obligations with its earnings. However, the ratio dropped to 3.47 in 2021, signaling a slight decrease in the company's ability to cover its interest expenses.
The lowest interest coverage ratio was recorded in 2020 at 0.85, indicating that the company's earnings were barely enough to cover its interest charges. This could raise concerns about the company's financial stability and ability to service its debt.
The ratio improved in 2019 to 5.08, demonstrating a better ability to manage its interest payments compared to the previous year. Overall, fluctuations in Marriott Vacations Worldwide Corp's interest coverage ratio suggest varying levels of financial health and debt servicing capability during the period under review.