Marriott International Inc. (NASDAQ:MAR)

Current Ratio Trend

The current ratio exhibited a fluctuating pattern over the analyzed periods. Beginning at 0.43 in 2015, it increased to 0.65 in 2016, indicating an improvement in short-term liquidity. However, it declined to 0.46 in 2017 and further decreased to 0.42 in 2018. A slight recovery occurred in 2019 with the ratio rising to 0.47. Throughout the period, the ratio remained below 1.0, suggesting that current liabilities consistently exceeded current assets, which could reflect potential liquidity constraints.

Quick Ratio Trend

The quick ratio followed a similar trend to the current ratio but remained generally lower. It increased from 0.37 in 2015 to 0.50 in 2016, signaling enhanced ability to cover current liabilities with more liquid assets. Subsequently, it declined to 0.40 in 2017, dropped slightly to 0.38 in 2018, and showed a marginal increase to 0.39 in 2019. The consistently low quick ratio values indicate limited availability of highly liquid assets to meet short-term obligations promptly.

Cash Ratio Trend

The cash ratio showed significant volatility and remained quite low throughout the periods. Starting from a minimal 0.03 in 2015, it surged to 0.17 in 2016, suggesting an improvement in cash and cash equivalents relative to current liabilities. This was followed by a notable decrease to 0.06 in 2017, a slight decline to 0.05 in 2018, and a further reduction back to 0.03 in 2019. The consistently low cash ratio underlines a limited cash buffer available to cover immediate liabilities.

Liquidity Profile Insights

Overall, the liquidity ratios reveal a constrained liquidity position across the periods, with temporary improvement in 2016. The notably low current, quick, and cash ratios indicate potential vulnerability in meeting short-term obligations without securing additional financing or liquidating assets. The dip after 2016 suggests a reduction in liquidity which could merit further investigation into working capital management and operational efficiency.

Current Assets

Current assets showed an initial substantial increase from 1,384 million USD in 2015 to 3,371 million USD in 2016. Subsequently, the value declined to 2,747 million USD in 2017 and remained relatively stable around 2,700 million USD in 2018, followed by a moderate increase to 3,127 million USD in 2019.

Current Liabilities

Current liabilities consistently increased over the period, starting at 3,233 million USD in 2015 and rising each year to reach 6,677 million USD in 2019. This reflects a steady growth in short-term obligations throughout the five-year span.

Current Ratio

The current ratio, which measures liquidity, was below 1 in all years, indicating current liabilities exceeded current assets each year. It rose from 0.43 in 2015 to a peak of 0.65 in 2016, then declined over the next two years to 0.42 in 2018. There was a slight improvement to 0.47 in 2019, but the ratio remained below 0.5, signaling ongoing liquidity pressure.

Overall Analysis

The data indicates that while current assets experienced volatility with an initial increase and subsequent drop before a modest recovery, current liabilities steadily increased, nearly doubling over five years. The consistently low current ratio under 1.0 points to potential liquidity challenges, as current obligations significantly exceed current assets throughout the period. The peak in the current ratio in 2016 suggests a temporary improvement in liquidity, but subsequent declines imply that the company was unable to sustain this position.

Total quick assets

The total quick assets exhibited a significant increase from 2015 to 2016, rising from 1,199 million US dollars to 2,553 million US dollars. This was followed by a slightly lower but relatively stable level over the subsequent years, with values of 2,374 million in 2017, 2,449 million in 2018, and 2,620 million in 2019.

Current liabilities

Current liabilities showed a consistent upward trend throughout the period under review. Starting at 3,233 million US dollars in 2015, liabilities increased year-on-year to reach 6,677 million US dollars by the end of 2019. This nearly doubling over five years indicates growing short-term financial obligations.

Quick ratio

The quick ratio, which measures liquidity by comparing quick assets to current liabilities, remained under 1.0 across all years, indicating that quick assets were insufficient to cover current liabilities fully. The ratio rose from 0.37 in 2015 to a peak of 0.5 in 2016, then declined steadily to 0.4 in 2017, 0.38 in 2018, and slightly increased to 0.39 in 2019. This fluctuation suggests tightening liquidity conditions after 2016 despite incremental improvements in quick assets.

The financial data reveals several noteworthy trends in liquidity and liability metrics over the five-year period.

Total cash assets

Total cash assets showed a significant increase from 96 million US dollars at the end of 2015 to a peak of 858 million in 2016. However, from 2017 onwards, there was a consistent decline each year, falling to 383 million in 2017, 316 million in 2018, and further down to 225 million by the end of 2019. This suggests a reduction in readily available cash resources after the initial increase.

Current liabilities

Current liabilities exhibited a steady increase throughout the entirety of the analyzed timeframe. Starting at 3,233 million US dollars at the close of 2015, liabilities rose each year to reach 5,147 million in 2016, 6,010 million in 2017, 6,437 million in 2018, and 6,677 million by the end of 2019. This consistent upward trajectory indicates growing short-term obligations.

Cash ratio

The cash ratio, which measures the company’s ability to cover current liabilities with cash and cash equivalents, experienced significant fluctuations. It started at a low 0.03 in 2015, increased substantially to 0.17 in 2016 reflecting improved liquidity coinciding with the cash asset peak, but then declined again to 0.06 in 2017 and remained low at 0.05 in 2018 and 0.03 in 2019. This demonstrates a diminished capacity to cover short-term liabilities with cash in the later years.

Overall, the data highlights a period of strong liquidity in 2016 marked by high cash reserves and an improved cash ratio. However, the subsequent years indicate a decline in liquid assets combined with rising current liabilities, resulting in reduced liquidity cushions by the end of 2019. This trend may signal increased financial pressure in managing short-term obligations solely through cash assets.