Marriot Vacations Worldwide (VAC)
Financial leverage ratio
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 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 | 9,214,000 | 9,059,000 | 9,023,000 | 9,112,000 |
| Total stockholders’ equity | US$ in thousands | 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 | 3,019,000 | 3,112,000 | 3,264,000 | 3,346,000 |
| Financial leverage ratio | 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 | 3.05 | 2.91 | 2.76 | 2.72 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $9,680,000K ÷ $2,382,000K
= 4.06
The financial leverage ratio of Marriott Vacations Worldwide Corp has been relatively stable over the past eight quarters, ranging from 3.38 to 4.06. The ratio indicates that the company relies more on debt financing rather than equity financing to support its operations and growth initiatives.
The increasing trend in the financial leverage ratio from Q1 2022 to Q4 2023 suggests that the company has been taking on more debt to finance its activities. While a higher leverage ratio can magnify returns in good times, it also increases the financial risk of the company, especially in times of economic downturn or rising interest rates.
The company's trend of increasing the financial leverage ratio should be carefully monitored, as excessive leverage can lead to financial distress and difficulty in meeting debt obligations. Investors and stakeholders should consider the company's overall financial health and ability to manage its debt levels effectively.