Marriot Vacations Worldwide (VAC)
Financial leverage ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 9,808,000 | 9,740,000 | 9,611,000 | 9,867,000 | 9,680,000 | 9,453,000 | 9,482,000 | 9,602,000 | 9,639,000 | 9,237,000 | 9,340,000 | 9,503,000 | 9,613,000 | 9,543,000 | 10,414,000 | 9,187,000 | 8,898,000 | 9,011,000 | 9,117,000 | 9,432,000 |
| Total stockholders’ equity | US$ in thousands | 2,442,000 | 2,419,000 | 2,372,000 | 2,379,000 | 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 |
| Financial leverage ratio | 4.02 | 4.03 | 4.05 | 4.15 | 4.06 | 3.93 | 3.83 | 3.87 | 3.86 | 3.52 | 3.40 | 3.38 | 3.23 | 3.21 | 3.49 | 3.39 | 3.36 | 3.39 | 3.38 | 3.42 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $9,808,000K ÷ $2,442,000K
= 4.02
The financial leverage ratio for Marriot Vacations Worldwide has shown some fluctuations over the period from March 31, 2020, to December 31, 2024. The ratio indicates the company's level of debt relative to its equity.
We observe that the financial leverage ratio initially decreased from 3.42 on March 31, 2020, to 3.36 on December 31, 2020. This suggests a decrease in the company's reliance on debt during this period. However, the ratio started to increase from March 31, 2021, reaching a peak of 4.15 on March 31, 2024. This indicates that the company's debt levels increased significantly, relative to its equity, during this period.
The financial leverage ratio then experienced a slight decrease to 4.02 by December 31, 2024. This could be interpreted as a potential effort by the company to reduce its debt levels and strengthen its equity position.
Overall, the trend in the financial leverage ratio for Marriot Vacations Worldwide shows fluctuations, indicating changes in the company's capital structure and financial risk profile over the analyzed period. Investors and stakeholders may need to closely monitor these changes to assess the company's ability to manage its debt and maintain a healthy balance between debt and equity financing.