Marriot Vacations Worldwide (VAC)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 | 4.06 | 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 |
Marriott Vacations Worldwide Corp's solvency ratios have remained relatively stable over the quarters analyzed. The debt-to-assets ratio has consistently hovered around 0.53, indicating that approximately 53% of the company's assets are financed by debt. The debt-to-capital and debt-to-equity ratios have also shown stability, with values around 0.67 and 2.00, respectively. These ratios suggest that a significant portion of the company's capital structure is composed of debt.
The financial leverage ratio has shown a gradual increase over the quarters, reaching 4.06 in Q4 2023. This ratio indicates that the company is employing a higher level of debt compared to equity to finance its operations. While the increasing trend in the financial leverage ratio may raise concerns about the company's solvency and financial risk, it is important to consider the overall financial health and liquidity of Marriott Vacations Worldwide Corp in conjunction with these solvency ratios.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 24.41 | 33.38 | 15.47 | 15.57 | 16.00 | 13.31 | 11.97 | 10.24 | 8.66 | 9.75 | 8.83 | 8.14 | 7.47 | 5.59 | 5.08 | 7.71 | 222.00 | 54.50 | 39.35 | 36.11 |
Marriott Vacations Worldwide Corp has maintained a consistent trend of improving interest coverage ratios over the past eight quarters. The interest coverage ratio, a measure of the company's ability to meet its interest obligations on outstanding debt, has shown an upward trajectory from 4.68 in Q1 2022 to 7.44 in Q1 2023, indicating a strong financial position and the company's ability to comfortably cover its interest expenses.
The increasing trend in the interest coverage ratio suggests that Marriott Vacations Worldwide Corp's operating income is growing at a faster pace than its interest expenses. This signifies that the company is generating sufficient earnings to service its debt obligations and has a lower risk of defaulting on its debt.
Overall, the consistent improvement in the interest coverage ratio indicates a positive financial performance for Marriott Vacations Worldwide Corp and provides assurance to investors, lenders, and other stakeholders regarding the company's ability to manage its debt effectively.