Stock Analysis on Net

Marriott International Inc. (NASDAQ:MAR)

This company has been moved to the archive! The financial data has not been updated since May 11, 2020.

Financial Reporting Quality: Aggregate Accruals

Microsoft Excel

Earnings can be decomposed into cash and accrual components. The accrual component (aggregate accruals) has been found to have less persistence than the cash component, and therefore (1) earnings with higher accrual component are less persistent than earnings with smaller accrual component, all else equal; and (2) the cash component of earnings should receive a higher weighting evaluating company performance.


Balance-Sheet-Based Accruals Ratio

Marriott International Inc., balance sheet computation of aggregate accruals

US$ in millions

Microsoft Excel
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Operating Assets
Total assets 25,051 23,696 23,948 24,140 6,082
Less: Cash and equivalents 225 316 383 858 96
Operating assets 24,826 23,380 23,565 23,282 5,986
Operating Liabilities
Total liabilities 24,348 21,471 20,217 18,783 9,672
Less: Current portion of long-term debt 977 833 398 309 300
Less: Long-term debt, excluding current portion 9,963 8,514 7,840 8,197 3,807
Operating liabilities 13,408 12,124 11,979 10,277 5,565
 
Net operating assets1 11,418 11,256 11,586 13,005 421
Balance-sheet-based aggregate accruals2 162 (330) (1,419) 12,584
Financial Ratio
Balance-sheet-based accruals ratio3 1.43% -2.89% -11.54% 187.46%
Benchmarks
Balance-Sheet-Based Accruals Ratio, Competitors4
Airbnb Inc.
Booking Holdings Inc.
Chipotle Mexican Grill Inc.
McDonald’s Corp.
Starbucks Corp.
Balance-Sheet-Based Accruals Ratio, Sector
Consumer Services 200.00%
Balance-Sheet-Based Accruals Ratio, Industry
Consumer Discretionary 200.00%

Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).

1 2019 Calculation
Net operating assets = Operating assets – Operating liabilities
= 24,82613,408 = 11,418

2 2019 Calculation
Balance-sheet-based aggregate accruals = Net operating assets2019 – Net operating assets2018
= 11,41811,256 = 162

3 2019 Calculation
Balance-sheet-based accruals ratio = 100 × Balance-sheet-based aggregate accruals ÷ Avg. net operating assets
= 100 × 162 ÷ [(11,418 + 11,256) ÷ 2] = 1.43%

4 Click competitor name to see calculations.

Financial ratio Description The company
Balance-sheet-based accruals ratio Ratio is found by dividing balance-sheet-based aggregate accruals by average net operating assets. Using the balance-sheet-based accruals ratio, Marriott International Inc. improved earnings quality from 2018 to 2019.

Cash-Flow-Statement-Based Accruals Ratio

Marriott International Inc., cash flow statement computation of aggregate accruals

US$ in millions

Microsoft Excel
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Net income 1,273 1,907 1,372 780 859
Less: Net cash provided by operating activities 1,685 2,357 2,436 1,582 1,430
Less: Net cash (used in) provided by investing activities (284) (52) 1,020 (2,409) 367
Cash-flow-statement-based aggregate accruals (128) (398) (2,084) 1,607 (938)
Financial Ratio
Cash-flow-statement-based accruals ratio1 -1.13% -3.48% -16.95% 23.94%
Benchmarks
Cash-Flow-Statement-Based Accruals Ratio, Competitors2
Airbnb Inc.
Booking Holdings Inc.
Chipotle Mexican Grill Inc.
McDonald’s Corp.
Starbucks Corp.
Cash-Flow-Statement-Based Accruals Ratio, Sector
Consumer Services -37.35%
Cash-Flow-Statement-Based Accruals Ratio, Industry
Consumer Discretionary -8.48%

Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).

1 2019 Calculation
Cash-flow-statement-based accruals ratio = 100 × Cash-flow-statement-based aggregate accruals ÷ Avg. net operating assets
= 100 × -128 ÷ [(11,418 + 11,256) ÷ 2] = -1.13%

2 Click competitor name to see calculations.

Financial ratio Description The company
Cash-flow-statement-based accruals ratio Ratio is found by dividing cash-flow-statement-based aggregate accruals by average net operating assets. Using the cash-flow-statement-based accruals ratio, Marriott International Inc. improved earnings quality from 2018 to 2019.