Marriot Vacations Worldwide (VAC)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 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 |
Marriott Vacations Worldwide demonstrates a consistent pattern of very low solvency ratios over the years, with a debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio all consistently at 0.00. This indicates that the company has not relied heavily on debt financing to support its operations and investments.
However, the financial leverage ratio has shown an increasing trend over time, starting at 3.42 on March 31, 2020, and reaching 4.02 by December 31, 2024. This rising trend suggests that the company is gradually increasing its reliance on debt to finance its operations, which may lead to higher financial risk in the long term.
Overall, while the low debt ratios indicate a strong balance sheet and minimal debt burden, the increasing financial leverage ratio highlights the need for careful monitoring of the company's debt levels and financial management strategies to maintain a healthy solvency position.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 3.17 | 3.44 | 2.41 | 3.01 | 3.41 | 4.12 | 6.15 | 6.92 | 7.04 | 6.11 | 4.96 | 3.60 | 2.52 | 1.89 | 1.15 | 0.28 | 0.02 | 0.90 | 1.96 | 3.38 |
Marriott Vacations Worldwide's interest coverage ratio has shown fluctuations over the past few years, indicating varying levels of ability to cover interest obligations with operating profits.
The interest coverage ratio deteriorated significantly from March to December 2020 - dropping from 3.38 to 0.02. This suggests that the company's operating profits were only able to cover 2% of its interest expenses at the end of 2020.
However, from March 2021 onwards, there has been a gradual improvement in the interest coverage ratio. By December 2024, the ratio had recovered to 3.17, indicating that the company's operating profits were able to cover its interest expenses more than three times over.
Overall, an interest coverage ratio below 1 indicates that the company is not generating enough operating income to meet its interest obligations, posing a risk of potential financial distress. On the other hand, a ratio above 1 demonstrates the company's ability to comfortably meet its interest payments from its operational earnings.
Marriott Vacations Worldwide's interest coverage ratio has shown a volatile trend, but the recent improvement in the ratio suggests a strengthening ability to cover interest expenses with operating profits. Nonetheless, monitoring this ratio closely would be prudent to assess the company's financial health and ability to service its debt.