Marriot Vacations Worldwide (VAC)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 9,808,000 | 9,680,000 | 9,639,000 | 9,613,000 | 8,898,000 |
| Total stockholders’ equity | US$ in thousands | 2,442,000 | 2,382,000 | 2,496,000 | 2,976,000 | 2,651,000 |
| Financial leverage ratio | 4.02 | 4.06 | 3.86 | 3.23 | 3.36 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $9,808,000K ÷ $2,442,000K
= 4.02
The financial leverage ratio of Marriot Vacations Worldwide has shown fluctuations over the years based on the provided data.
As of December 31, 2020, the financial leverage ratio stood at 3.36, indicating that the company had a moderate level of leverage.
By December 31, 2021, the ratio decreased slightly to 3.23, suggesting a slight improvement in the company's leverage position.
However, by December 31, 2022, the financial leverage ratio increased significantly to 3.86, indicating a higher level of leverage compared to the previous year.
This upward trend in leverage continued into December 31, 2023, with the ratio reaching 4.06. This suggests that the company's reliance on debt had increased significantly, which may raise concerns about the company's financial risk and stability.
By December 31, 2024, the financial leverage ratio remained high at 4.02, indicating that Marriot Vacations Worldwide continued to operate with a relatively high level of leverage.
Overall, the trend in Marriot Vacations Worldwide's financial leverage ratio shows fluctuations with a general increase over the years, indicating a potentially higher reliance on debt financing, which may pose risks to the company's financial health and stability.