Marriot Vacations Worldwide (VAC)
Debt-to-capital ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| 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 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $2,382,000K)
= 0.00
The debt-to-capital ratio of Marriott Vacations Worldwide Corp has shown a fluctuating trend over the past five years. The ratio increased from 0.58 in 2019 to 0.62 in 2020, indicating a slight rise in the proportion of debt to total capital employed by the company. Subsequently, the ratio decreased to 0.60 in 2021 before rising again to 0.67 in 2022 and further to 0.68 in 2023.
The increasing trend in the debt-to-capital ratio in the last two years may suggest that Marriott Vacations Worldwide Corp has been relying more on debt to finance its operations compared to its own equity. This could potentially indicate a higher level of financial risk for the company as increased debt obligations might lead to higher interest expenses and repayment obligations. However, it is important to note that a higher debt-to-capital ratio does not necessarily imply financial distress, as it could also be a strategic decision to leverage debt for growth opportunities.
Overall, a detailed analysis of the company's financial health and its ability to manage its debt levels would require further examination of the company's overall financial position, cash flow, and future growth prospects.