Analysis of Solvency Ratios
Quarterly Data
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Marriott International Inc., solvency ratios (quarterly data)
Based on: 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31).
The financial ratios analyzed demonstrate distinct trends over the period from March 2016 to March 2020. The company's leverage and debt-related ratios indicate a consistent increase in indebtedness, while interest coverage reveals a reduction in the capacity to cover interest expenses over time.
- Debt to Equity
- This ratio shows a steady and significant rise from approximately 1.51 in late 2016 to 15.56 by the first quarter of 2020. The increase accelerates particularly from 2018 onward, signaling a growing reliance on debt financing relative to shareholders' equity.
- Debt to Equity (Including Operating Lease Liability)
- When including operating lease liabilities, the ratio follows a similar upward trajectory, rising from 1.51 to 16.82 over the same period. This confirms that lease obligations contribute notably to the overall leverage profile.
- Debt to Capital
- There is a consistent increase in the proportion of debt within the company's capital structure, moving from a low of 0.60 in the third quarter of 2016 to a full 1.00 in March 2020. The gradual rise points to progressive substitution of equity with debt.
- Debt to Capital (Including Operating Lease Liability)
- This ratio mirrors the trend without significant deviations but indicates slightly higher indebtedness when lease liabilities are factored in, reaching 1.00 by the observed endpoint.
- Debt to Assets
- The company's debt relative to total assets grew moderately from around 0.35 in late 2016 to 0.48 in March 2020. The inclusion of operating leases yields a marginally higher ratio, ending at approximately 0.51, highlighting the increasing financial obligations carried on the asset base.
- Financial Leverage
- This metric shows a steep increase, climbing from roughly 4.28 in late 2016 to an elevated 35.63 by early 2020. This sharp rise indicates escalating use of debt to finance assets and may raise concerns regarding the stability and risk profile of the capital structure.
- Interest Coverage
- The interest coverage ratio declined overall from 8.16 in March 2016 to 4.04 by March 2020. Although it fluctuated, peaking around late 2017 and early 2018, the downward trend in the latter periods suggests diminishing ability to meet interest expenses from operating earnings, which could imply increasing financial strain.
In summary, the data portrays a company increasing its leverage substantially over the reported periods, with debt growing faster relative to equity and assets. This has led to greater financial risk, as evidenced by elevated financial leverage and reduced interest coverage. The inclusion of operating lease liabilities further magnifies the leverage figures. Monitoring of liquidity and solvency should be prioritized given these trends.
Debt Ratios
Coverage Ratios
Debt to Equity
Marriott International Inc., debt to equity calculation (quarterly data)
| Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Current portion of long-term debt | 1,664) | 977) | 227) | 229) | 231) | 833) | 617) | 616) | 988) | 398) | 398) | 402) | 309) | 309) | 316) | 303) | 300) | ||||||
| Long-term debt, excluding current portion | 10,569) | 9,963) | 10,552) | 10,185) | 10,025) | 8,514) | 8,710) | 8,375) | 7,858) | 7,840) | 8,271) | 7,911) | 8,161) | 8,197) | 8,506) | 4,057) | 3,859) | ||||||
| Total debt | 12,233) | 10,940) | 10,779) | 10,414) | 10,256) | 9,347) | 9,327) | 8,991) | 8,846) | 8,238) | 8,669) | 8,313) | 8,470) | 8,506) | 8,822) | 4,360) | 4,159) | ||||||
| Shareholders’ equity (deficit) | (20) | 703) | 838) | 1,240) | 1,603) | 2,225) | 2,324) | 2,841) | 3,566) | 3,731) | 4,512) | 4,901) | 5,168) | 5,357) | 5,841) | (3,462) | (3,667) | ||||||
| Solvency Ratio | |||||||||||||||||||||||
| Debt to equity1 | — | 15.56 | 12.86 | 8.40 | 6.40 | 4.20 | 4.01 | 3.16 | 2.48 | 2.21 | 1.92 | 1.70 | 1.64 | 1.59 | 1.51 | — | — | ||||||
| Benchmarks | |||||||||||||||||||||||
| Debt to Equity, Competitors2 | |||||||||||||||||||||||
| Airbnb Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Booking Holdings Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Chipotle Mexican Grill Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| DoorDash, Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| McDonald’s Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Starbucks Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31).
1 Q1 2020 Calculation
Debt to equity = Total debt ÷ Shareholders’ equity (deficit)
= 12,233 ÷ -20 = —
2 Click competitor name to see calculations.
The financial data over the observed periods reveals several significant trends concerning the company's debt structure and equity position.
- Total Debt
- Total debt demonstrates a general upward trajectory from March 2016 through March 2020. Starting at approximately US$4.16 billion, it increases steadily, reaching over US$12.23 billion by March 2020. Notably, there is a sharp increase particularly from 2019 onward, indicating growing leverage obligations on the company’s balance sheet.
- Shareholders’ Equity
- The shareholders’ equity fluctuates considerably within the periods. Initially, equity is negative in early 2016, then turns positive during late 2016 through 2019. This suggests a recovery in net asset value during this timeframe. However, starting from early 2018, equity declines again progressively, nearly reaching zero by March 2020. This decline, despite increasing total debt, points to diminishing net worth and potential financial stress.
- Debt to Equity Ratio
- The debt to equity ratio, available from September 2016 onwards, reveals a consistent increase, moving from approximately 1.51 up to 15.56 by early 2020. This large rise indicates that total debt is increasingly overwhelming the equity base. The sharp escalation particularly after 2018 signals heightened financial leverage risks and vulnerability to equity fluctuations.
In summary, the company has taken on progressively more debt over the examined quarters, while equity has experienced notable volatility and a downward trend in later periods. The increasing debt to equity ratio underscores a growing leverage position that could pose financial risk if not managed carefully. The nearing-zero equity figure by early 2020 could be indicative of weakened solvency and reduced investor cushion against liabilities.
Debt to Equity (including Operating Lease Liability)
Marriott International Inc., debt to equity (including operating lease liability) calculation (quarterly data)
| Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Current portion of long-term debt | 1,664) | 977) | 227) | 229) | 231) | 833) | 617) | 616) | 988) | 398) | 398) | 402) | 309) | 309) | 316) | 303) | 300) | ||||||
| Long-term debt, excluding current portion | 10,569) | 9,963) | 10,552) | 10,185) | 10,025) | 8,514) | 8,710) | 8,375) | 7,858) | 7,840) | 8,271) | 7,911) | 8,161) | 8,197) | 8,506) | 4,057) | 3,859) | ||||||
| Total debt | 12,233) | 10,940) | 10,779) | 10,414) | 10,256) | 9,347) | 9,327) | 8,991) | 8,846) | 8,238) | 8,669) | 8,313) | 8,470) | 8,506) | 8,822) | 4,360) | 4,159) | ||||||
| Noncurrent operating lease liabilities | 846) | 882) | 868) | 893) | 889) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | ||||||
| Total debt (including operating lease liability) | 13,079) | 11,822) | 11,647) | 11,307) | 11,145) | 9,347) | 9,327) | 8,991) | 8,846) | 8,238) | 8,669) | 8,313) | 8,470) | 8,506) | 8,822) | 4,360) | 4,159) | ||||||
| Shareholders’ equity (deficit) | (20) | 703) | 838) | 1,240) | 1,603) | 2,225) | 2,324) | 2,841) | 3,566) | 3,731) | 4,512) | 4,901) | 5,168) | 5,357) | 5,841) | (3,462) | (3,667) | ||||||
| Solvency Ratio | |||||||||||||||||||||||
| Debt to equity (including operating lease liability)1 | — | 16.82 | 13.90 | 9.12 | 6.95 | 4.20 | 4.01 | 3.16 | 2.48 | 2.21 | 1.92 | 1.70 | 1.64 | 1.59 | 1.51 | — | — | ||||||
| Benchmarks | |||||||||||||||||||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | |||||||||||||||||||||||
| Booking Holdings Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Chipotle Mexican Grill Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| DoorDash, Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Starbucks Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31).
1 Q1 2020 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Shareholders’ equity (deficit)
= 13,079 ÷ -20 = —
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several notable trends concerning the company's capital structure and financial leverage over the examined periods.
- Total Debt (including operating lease liability)
- The total debt increased progressively from approximately 4.16 billion USD in the first quarter of 2016 to around 13.08 billion USD by the first quarter of 2020. This upward trend signifies a consistent rise in the company's leverage and obligations during this timeframe.
- Shareholders’ Equity (Deficit)
- The shareholders' equity exhibited considerable volatility. Initially recorded as negative values in early 2016, it shifted to positive figures beginning in the third quarter of 2016, peaking at 5.84 billion USD. However, from this peak, equity declined steadily, returning to near zero by the first quarter of 2020. This decline suggests deteriorating net asset value over the period.
- Debt to Equity Ratio (including operating lease liability)
- The debt to equity ratio consistently increased, starting at 1.51 in the third quarter of 2016 and escalating dramatically to 16.82 by the last recorded quarter. The ratio's surge is indicative of expanding leverage; the company is increasingly financed by debt relative to its equity base. This elevated ratio reflects heightened financial risk and potential challenges in meeting obligations from equity financing.
Overall, the data depict a scenario of growing indebtedness combined with diminishing equity value, resulting in a substantial elevation of the debt to equity ratio. This pattern may raise concerns about financial stability and long-term solvency, highlighting the necessity for careful management of debt levels and equity capital going forward.
Debt to Capital
Marriott International Inc., debt to capital calculation (quarterly data)
| Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Current portion of long-term debt | 1,664) | 977) | 227) | 229) | 231) | 833) | 617) | 616) | 988) | 398) | 398) | 402) | 309) | 309) | 316) | 303) | 300) | ||||||
| Long-term debt, excluding current portion | 10,569) | 9,963) | 10,552) | 10,185) | 10,025) | 8,514) | 8,710) | 8,375) | 7,858) | 7,840) | 8,271) | 7,911) | 8,161) | 8,197) | 8,506) | 4,057) | 3,859) | ||||||
| Total debt | 12,233) | 10,940) | 10,779) | 10,414) | 10,256) | 9,347) | 9,327) | 8,991) | 8,846) | 8,238) | 8,669) | 8,313) | 8,470) | 8,506) | 8,822) | 4,360) | 4,159) | ||||||
| Shareholders’ equity (deficit) | (20) | 703) | 838) | 1,240) | 1,603) | 2,225) | 2,324) | 2,841) | 3,566) | 3,731) | 4,512) | 4,901) | 5,168) | 5,357) | 5,841) | (3,462) | (3,667) | ||||||
| Total capital | 12,213) | 11,643) | 11,617) | 11,654) | 11,859) | 11,572) | 11,651) | 11,832) | 12,412) | 11,969) | 13,181) | 13,214) | 13,638) | 13,863) | 14,663) | 898) | 492) | ||||||
| Solvency Ratio | |||||||||||||||||||||||
| Debt to capital1 | 1.00 | 0.94 | 0.93 | 0.89 | 0.86 | 0.81 | 0.80 | 0.76 | 0.71 | 0.69 | 0.66 | 0.63 | 0.62 | 0.61 | 0.60 | 4.86 | 8.45 | ||||||
| Benchmarks | |||||||||||||||||||||||
| Debt to Capital, Competitors2 | |||||||||||||||||||||||
| Airbnb Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Booking Holdings Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Chipotle Mexican Grill Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| DoorDash, Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| McDonald’s Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Starbucks Corp. | 2.38 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31).
1 Q1 2020 Calculation
Debt to capital = Total debt ÷ Total capital
= 12,233 ÷ 12,213 = 1.00
2 Click competitor name to see calculations.
The analysis of the financial data over the specified quarterly periods reveals notable trends in the company's leverage and capital structure.
- Total Debt
- Total debt exhibited a generally increasing trajectory from March 31, 2016, through March 31, 2020. Starting at approximately $4.16 billion, total debt showed an initial spike in the third quarter of 2016, rising to $8.82 billion. Subsequent quarters reflected some fluctuations but maintained an upward slope overall. Notably, from March 2019 to March 2020, total debt increased from about $10.26 billion to $12.23 billion, indicating an increased reliance on debt financing towards the end of the analyzed period.
- Total Capital
- Total capital values presented more variability and did not follow a steadily increasing trend. Beginning notably low at $492 million in March 2016, total capital rose sharply to over $14.6 billion by September 2016, then declined gradually through 2017 and 2018 to a range near $11.5 to $12.4 billion. The period from March 2019 to March 2020 shows relative stability around $11.6 to $12.2 billion. This pattern suggests fluctuations in capital, possibly driven by changes in equity or retained earnings, which moderate the impact of increasing debt.
- Debt to Capital Ratio
- The debt to capital ratio recorded a remarkable decrease from 8.45 in March 2016 to approximately 0.60 during the third quarter of 2016, followed by a gradual and consistent increase to reach parity (1.00) by March 2020. Early in the timeline, the high ratio was likely impacted by the relatively low base of total capital compared to the total debt figure. However, from mid-2016 onwards, the rising ratio indicates a steady increase in the proportion of debt financing relative to total capital. This trend underscores potential growing financial leverage and associated risk over time, culminating in a scenario where debt matches total capital in the latest period.
In summary, the company experienced substantial growth in total debt accompanied by fluctuating but relatively stable total capital in later periods. The debt to capital ratio's upward movement over the years highlights increasing leverage, which may warrant attention regarding debt servicing capability and financial risk management.
Debt to Capital (including Operating Lease Liability)
Marriott International Inc., debt to capital (including operating lease liability) calculation (quarterly data)
| Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Current portion of long-term debt | 1,664) | 977) | 227) | 229) | 231) | 833) | 617) | 616) | 988) | 398) | 398) | 402) | 309) | 309) | 316) | 303) | 300) | ||||||
| Long-term debt, excluding current portion | 10,569) | 9,963) | 10,552) | 10,185) | 10,025) | 8,514) | 8,710) | 8,375) | 7,858) | 7,840) | 8,271) | 7,911) | 8,161) | 8,197) | 8,506) | 4,057) | 3,859) | ||||||
| Total debt | 12,233) | 10,940) | 10,779) | 10,414) | 10,256) | 9,347) | 9,327) | 8,991) | 8,846) | 8,238) | 8,669) | 8,313) | 8,470) | 8,506) | 8,822) | 4,360) | 4,159) | ||||||
| Noncurrent operating lease liabilities | 846) | 882) | 868) | 893) | 889) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | ||||||
| Total debt (including operating lease liability) | 13,079) | 11,822) | 11,647) | 11,307) | 11,145) | 9,347) | 9,327) | 8,991) | 8,846) | 8,238) | 8,669) | 8,313) | 8,470) | 8,506) | 8,822) | 4,360) | 4,159) | ||||||
| Shareholders’ equity (deficit) | (20) | 703) | 838) | 1,240) | 1,603) | 2,225) | 2,324) | 2,841) | 3,566) | 3,731) | 4,512) | 4,901) | 5,168) | 5,357) | 5,841) | (3,462) | (3,667) | ||||||
| Total capital (including operating lease liability) | 13,059) | 12,525) | 12,485) | 12,547) | 12,748) | 11,572) | 11,651) | 11,832) | 12,412) | 11,969) | 13,181) | 13,214) | 13,638) | 13,863) | 14,663) | 898) | 492) | ||||||
| Solvency Ratio | |||||||||||||||||||||||
| Debt to capital (including operating lease liability)1 | 1.00 | 0.94 | 0.93 | 0.90 | 0.87 | 0.81 | 0.80 | 0.76 | 0.71 | 0.69 | 0.66 | 0.63 | 0.62 | 0.61 | 0.60 | 4.86 | 8.45 | ||||||
| Benchmarks | |||||||||||||||||||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | |||||||||||||||||||||||
| Booking Holdings Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Chipotle Mexican Grill Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| DoorDash, Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Starbucks Corp. | 1.49 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31).
1 Q1 2020 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 13,079 ÷ 13,059 = 1.00
2 Click competitor name to see calculations.
- Debt Level
- The total debt, including operating lease liability, exhibits a general upward trend over the observed period. Starting from approximately 4.16 billion USD in the first quarter of 2016, the debt amount fluctuates with notable increases during late 2016, maintaining a steady rise reaching around 13.08 billion USD by the first quarter of 2020.
- Capital Level
- Total capital, including operating lease liability, shows a less consistent pattern with initial sharp increases early in the timeline, notably from under 1 billion USD to over 14 billion USD by late 2016. Subsequently, from 2017 onward, capital levels tend to decrease somewhat, settling in the range of approximately 11.5 to 12.7 billion USD, ending at about 13.06 billion USD in early 2020.
- Debt to Capital Ratio
- The debt to capital ratio, a key leverage indicator, begins relatively low in 2016, with values fluctuating from around 0.6 to below 0.7 during the initial quarters, indicating comparatively lower leverage. Over time, this ratio increases steadily, moving from about 0.71 in early 2018 to reach parity (1.0) by the first quarter of 2020. This signals that total debt has grown to equal the amount of total capital, suggesting a significant rise in financial leverage.
- Overall Analysis
- The company shows a marked increase in debt levels over the four-year span, with total capital not exhibiting the same growth, leading to an increasing trend in financial leverage as observed through the rising debt to capital ratio. This gradual increase implies greater reliance on borrowed funds relative to total capital, which could impact financial risk and borrowing capacity. The peak debt to capital ratio of 1.0 as of Q1 2020 reflects a critical leverage point that may warrant close monitoring and assessment of the company's debt management strategy going forward.
Debt to Assets
Marriott International Inc., debt to assets calculation (quarterly data)
| Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Current portion of long-term debt | 1,664) | 977) | 227) | 229) | 231) | 833) | 617) | 616) | 988) | 398) | 398) | 402) | 309) | 309) | 316) | 303) | 300) | ||||||
| Long-term debt, excluding current portion | 10,569) | 9,963) | 10,552) | 10,185) | 10,025) | 8,514) | 8,710) | 8,375) | 7,858) | 7,840) | 8,271) | 7,911) | 8,161) | 8,197) | 8,506) | 4,057) | 3,859) | ||||||
| Total debt | 12,233) | 10,940) | 10,779) | 10,414) | 10,256) | 9,347) | 9,327) | 8,991) | 8,846) | 8,238) | 8,669) | 8,313) | 8,470) | 8,506) | 8,822) | 4,360) | 4,159) | ||||||
| Total assets | 25,549) | 25,051) | 24,812) | 24,893) | 24,746) | 23,696) | 23,833) | 23,844) | 24,484) | 23,948) | 24,236) | 23,881) | 23,925) | 24,140) | 25,002) | 6,650) | 6,121) | ||||||
| Solvency Ratio | |||||||||||||||||||||||
| Debt to assets1 | 0.48 | 0.44 | 0.43 | 0.42 | 0.41 | 0.39 | 0.39 | 0.38 | 0.36 | 0.34 | 0.36 | 0.35 | 0.35 | 0.35 | 0.35 | 0.66 | 0.68 | ||||||
| Benchmarks | |||||||||||||||||||||||
| Debt to Assets, Competitors2 | |||||||||||||||||||||||
| Airbnb Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Booking Holdings Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Chipotle Mexican Grill Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| DoorDash, Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| McDonald’s Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Starbucks Corp. | 0.42 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31).
1 Q1 2020 Calculation
Debt to assets = Total debt ÷ Total assets
= 12,233 ÷ 25,549 = 0.48
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several trends and shifts in the company's financial position over the examined periods.
- Total Debt
- Total debt exhibited an overall increasing trend throughout the timeframe. Starting from a value just above 4 billion USD in early 2016, debt levels rose sharply in the third quarter of 2016, nearly doubling and then remaining relatively stable through 2017 and 2018. From 2019 onward, total debt gradually increased again, reaching a peak above 12 billion USD by the first quarter of 2020.
- Total Assets
- Total assets followed a similar upward trajectory but with notable fluctuations. A significant surge was observed in the third quarter of 2016, peaking above 25 billion USD, followed by slight decreases and relative stability through 2017 and 2018. From 2019 into early 2020, assets maintained a steady level with a mild upward trend, ending just over 25 billion USD at the close of the period.
- Debt to Assets Ratio
- The debt to assets ratio started moderately high in early 2016, close to 0.68, before dramatically declining to approximately 0.35 by the third quarter of 2016, reflecting the sharp increase in asset base relative to debt. For much of 2017 and 2018, this ratio hovered around 0.34 to 0.39, indicating a stabilization in the balance between debt and assets. However, from 2019 forward, the ratio showed a steady increase, rising from about 0.41 to 0.48 by the first quarter of 2020, signaling a growing proportion of debt compared to assets during that period.
In summary, the company experienced a significant structural shift in its balance sheet around late 2016, marked by a large increase in assets which temporarily lowered the leverage ratio. In the subsequent years, debt levels incrementally rose at a faster pace than assets, leading to a gradually increasing leverage ratio. This trend suggests a more leveraged financial structure heading into early 2020, potentially reflecting strategic financing decisions or responses to operational needs in that period.
Debt to Assets (including Operating Lease Liability)
Marriott International Inc., debt to assets (including operating lease liability) calculation (quarterly data)
| Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Current portion of long-term debt | 1,664) | 977) | 227) | 229) | 231) | 833) | 617) | 616) | 988) | 398) | 398) | 402) | 309) | 309) | 316) | 303) | 300) | ||||||
| Long-term debt, excluding current portion | 10,569) | 9,963) | 10,552) | 10,185) | 10,025) | 8,514) | 8,710) | 8,375) | 7,858) | 7,840) | 8,271) | 7,911) | 8,161) | 8,197) | 8,506) | 4,057) | 3,859) | ||||||
| Total debt | 12,233) | 10,940) | 10,779) | 10,414) | 10,256) | 9,347) | 9,327) | 8,991) | 8,846) | 8,238) | 8,669) | 8,313) | 8,470) | 8,506) | 8,822) | 4,360) | 4,159) | ||||||
| Noncurrent operating lease liabilities | 846) | 882) | 868) | 893) | 889) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | ||||||
| Total debt (including operating lease liability) | 13,079) | 11,822) | 11,647) | 11,307) | 11,145) | 9,347) | 9,327) | 8,991) | 8,846) | 8,238) | 8,669) | 8,313) | 8,470) | 8,506) | 8,822) | 4,360) | 4,159) | ||||||
| Total assets | 25,549) | 25,051) | 24,812) | 24,893) | 24,746) | 23,696) | 23,833) | 23,844) | 24,484) | 23,948) | 24,236) | 23,881) | 23,925) | 24,140) | 25,002) | 6,650) | 6,121) | ||||||
| Solvency Ratio | |||||||||||||||||||||||
| Debt to assets (including operating lease liability)1 | 0.51 | 0.47 | 0.47 | 0.45 | 0.45 | 0.39 | 0.39 | 0.38 | 0.36 | 0.34 | 0.36 | 0.35 | 0.35 | 0.35 | 0.35 | 0.66 | 0.68 | ||||||
| Benchmarks | |||||||||||||||||||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | |||||||||||||||||||||||
| Booking Holdings Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Chipotle Mexican Grill Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| DoorDash, Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Starbucks Corp. | 0.74 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31).
1 Q1 2020 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 13,079 ÷ 25,549 = 0.51
2 Click competitor name to see calculations.
The financial data reveals several key trends related to the company's debt levels, asset base, and leverage ratios over the observed periods.
- Total Debt (including operating lease liability)
- The total debt showed a significant increase from March 2016 to September 2016, nearly doubling from approximately $4.16 billion to $8.82 billion. After this sharp rise, debt levels stabilized somewhat, fluctuating modestly throughout 2017 and 2018 but generally trending upward. From early 2019 onwards, debt steadily increased again, reaching about $13.08 billion by March 2020. This upward trajectory in total debt suggests ongoing borrowing or lease obligations growing over time.
- Total Assets
- Total assets initially experienced a substantial rise between June 2016 and September 2016, increasing sharply from approximately $6.65 billion to $25 billion. Following this surge, total assets remained relatively stable, with minor fluctuations observed in subsequent quarters. From 2019 onwards, there was a slight but consistent increase, ending at approximately $25.55 billion by March 2020. This relatively stable asset base after mid-2016 indicates that asset growth plateaued with only incremental changes thereafter.
- Debt to Assets Ratio (including operating lease liability)
- The debt to assets ratio decreased markedly from 0.68 in March 2016 to about 0.35 by the end of 2016, reflecting the considerable increase in total assets relative to debt during this period. This ratio remained fairly steady through 2017 and 2018, fluctuating between 0.34 and 0.39. Starting in 2019, the ratio began to climb steadily, reaching 0.51 by March 2020. This rise signals increasing leverage, with debt growing at a faster pace than assets in the most recent periods.
In summary, the company significantly expanded its asset base and debt load in the latter half of 2016, substantially lowering leverage initially. Since then, assets have remained relatively stable while debt continued to increase, especially from 2019 onwards, resulting in a progressive increase in the debt to assets ratio and indicating heightened financial leverage entering 2020.
Financial Leverage
Marriott International Inc., financial leverage calculation (quarterly data)
| Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Total assets | 25,549) | 25,051) | 24,812) | 24,893) | 24,746) | 23,696) | 23,833) | 23,844) | 24,484) | 23,948) | 24,236) | 23,881) | 23,925) | 24,140) | 25,002) | 6,650) | 6,121) | ||||||
| Shareholders’ equity (deficit) | (20) | 703) | 838) | 1,240) | 1,603) | 2,225) | 2,324) | 2,841) | 3,566) | 3,731) | 4,512) | 4,901) | 5,168) | 5,357) | 5,841) | (3,462) | (3,667) | ||||||
| Solvency Ratio | |||||||||||||||||||||||
| Financial leverage1 | — | 35.63 | 29.61 | 20.08 | 15.44 | 10.65 | 10.26 | 8.39 | 6.87 | 6.42 | 5.37 | 4.87 | 4.63 | 4.51 | 4.28 | — | — | ||||||
| Benchmarks | |||||||||||||||||||||||
| Financial Leverage, Competitors2 | |||||||||||||||||||||||
| Airbnb Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Booking Holdings Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Chipotle Mexican Grill Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| DoorDash, Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| McDonald’s Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Starbucks Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31).
1 Q1 2020 Calculation
Financial leverage = Total assets ÷ Shareholders’ equity (deficit)
= 25,549 ÷ -20 = —
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several notable trends and changes over the examined periods.
- Total Assets
- The total assets exhibited a significant increase from the initial values in early 2016, reaching a peak in the third quarter of 2016. Following this peak, the asset base stabilized around the mid- to high-23,000 million US dollars range throughout 2017 and 2018. In 2019 and early 2020, total assets gradually increased again, reaching approximately 25,549 million US dollars by the first quarter of 2020, indicating overall growth in asset holdings over the analyzed timeframe.
- Shareholders’ Equity (Deficit)
- Shareholders’ equity showed substantial fluctuations. Initially, a negative equity position was noted in early 2016; however, a sharp turnaround occurred by the third quarter of 2016, where equity moved into positive territory and remained positive until the end of 2019. During 2017 through 2019, equity consistently declined, suggesting possible accumulated losses or distributions exceeding earnings. By the first quarter of 2020, equity returned close to zero, becoming slightly negative at -20 million US dollars, which might reflect increased liabilities or shrinking asset value relative to obligations.
- Financial Leverage
- The financial leverage ratio was not available for early 2016 but showed a clear upward trend from Q3 2016 onwards. Starting at 4.28, the ratio increased progressively, indicating a growing reliance on debt financing relative to equity. This ratio soared dramatically towards the end of the observed period, reaching 35.63 by early 2020. This sharp increase suggests a considerable intensification in financial risk, as the company’s obligations outweighed its equity base by an ever-widening margin.
In summary, while the company expanded its total assets moderately over the timeline, the equity base diminished significantly, accompanied by a steep rise in financial leverage. These dynamics may signal potential vulnerabilities related to financial stability, highlighting increased debt dependence and reduced cushion provided by equity.
Interest Coverage
Marriott International Inc., interest coverage calculation (quarterly data)
| Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Net income | 31) | 279) | 387) | 232) | 375) | 317) | 503) | 667) | 420) | 201) | 392) | 414) | 365) | 244) | 70) | 247) | 219) | ||||||
| Add: Income tax expense | (12) | 47) | 140) | 82) | 57) | 28) | 91) | 207) | 112) | 978) | 188) | 178) | 120) | 139) | 61) | 97) | 107) | ||||||
| Add: Interest expense | 93) | 95) | 100) | 102) | 97) | 94) | 86) | 85) | 75) | 72) | 73) | 73) | 70) | 75) | 55) | 57) | 47) | ||||||
| Earnings before interest and tax (EBIT) | 112) | 421) | 627) | 416) | 529) | 439) | 680) | 959) | 607) | 1,251) | 653) | 665) | 555) | 458) | 186) | 401) | 373) | ||||||
| Solvency Ratio | |||||||||||||||||||||||
| Interest coverage1 | 4.04 | 5.06 | 5.12 | 5.45 | 7.20 | 7.90 | 11.00 | 11.38 | 10.84 | 10.85 | 8.01 | 6.83 | 6.23 | 6.06 | 6.29 | 7.54 | 8.16 | ||||||
| Benchmarks | |||||||||||||||||||||||
| Interest Coverage, Competitors2 | |||||||||||||||||||||||
| Booking Holdings Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| DoorDash, Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| McDonald’s Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Starbucks Corp. | 14.35 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31).
1 Q1 2020 Calculation
Interest coverage
= (EBITQ1 2020
+ EBITQ4 2019
+ EBITQ3 2019
+ EBITQ2 2019)
÷ (Interest expenseQ1 2020
+ Interest expenseQ4 2019
+ Interest expenseQ3 2019
+ Interest expenseQ2 2019)
= (112 + 421 + 627 + 416)
÷ (93 + 95 + 100 + 102)
= 4.04
2 Click competitor name to see calculations.
- Earnings before interest and tax (EBIT)
- The EBIT exhibits a fluctuating pattern with notable seasonal and yearly variations. Starting at 373 million USD in the first quarter of 2016, it generally trended upward, reaching a peak of 1251 million USD in the fourth quarter of 2017. Subsequently, there was a marked decline in 2018, with EBIT values falling to as low as 439 million USD by year-end. The first three quarters of 2019 show a moderate recovery, with EBIT rising again to 627 million USD in the third quarter before declining in the final quarter and significantly dropping to 112 million USD in the first quarter of 2020. This sharp drop at the start of 2020 may indicate emerging challenges or external shocks affecting operational profitability.
- Interest Expense
- Interest expense demonstrates a gradual upward trend over the observed period. Beginning at 47 million USD in early 2016, expenses increased incrementally almost every quarter, peaking near 102 million USD in the third quarter of 2019 before slightly decreasing to 93 million USD by the first quarter of 2020. This steady increase may reflect higher debt levels or rising interest rates, which could impact overall financial costs and leverage.
- Interest Coverage Ratio
- The interest coverage ratio, which measures the ability to cover interest obligations with EBIT, follows the movements of EBIT but with some divergence. It improved from 8.16 times in March 2016 to a notable high of approximately 11.38 times in mid-2018, indicating strong earnings relative to interest expense during this period. However, starting in late 2018, this ratio declined steadily, hitting 4.04 times by the first quarter of 2020. The decreasing trend in interest coverage suggests a weakening in the company’s capacity to meet interest payments from operating earnings, primarily driven by the drop in EBIT combined with sustained interest expenses.