Marriott International Inc. (NASDAQ:MAR)

The analysis of the financial ratios over the period reveals several notable trends and changes among the metrics presented.

Net Fixed Asset Turnover

This ratio shows fluctuating values beginning around 14.08 for early 2015 through to mid-2016, followed by a significant drop to 6.36 by the end of 2016. Subsequently, it exhibits a recovery trend gradually increasing from 7.31 in early 2017 to a peak close to 12.77 in mid-2017, then slightly declining but stabilizing above 10 through 2019 into early 2020. This pattern suggests some disruption or asset base changes around late 2016 but a recovery and relative stability thereafter.

Net Fixed Asset Turnover (including operating lease, right-of-use asset)

The trend for this ratio closely mirrors the net fixed asset turnover initially. However, after mid-2018, there is a marked decline from 10.61 down to approximately 7.83 by early 2020. This sustained decrease in the latter periods may be related to the adoption of operating lease accounting standards, reflecting the effect of right-of-use assets impacting turnover ratios negatively compared to traditional asset measures.

Total Asset Turnover

This ratio exhibits a sharp drop from approximately 2.38-2.41 in mid-2015 to as low as 0.61 by the end of 2015, indicating a significant decrease in asset efficiency. Following this drop, a gradual recovery is observed up to nearly 0.96 in early 2018 before it gently declines and stabilizes around the 0.81 to 0.84 range through 2019 and into 2020. This may reflect changes in asset base, revenue generation, or both, potentially indicating operational challenges or asset growth outpacing revenue.

Equity Turnover

Equity turnover data starts being available only from late 2016 and shows a consistent upward trajectory over the observed periods. Growth is evident starting around 2.62, rising steadily to an impressive 29.83 by the first quarter of 2020. This indicates an increasingly efficient use of shareholders' equity to generate sales, suggesting either improved profitability or changes in capital structure, possibly reflecting increased leveraging or equity base management.

Overall, the data indicates that while asset turnover ratios faced significant volatility and decline around late 2015 through 2016, there was a general recovery and stabilization over subsequent years. The pronounced rise in equity turnover from late 2016 onwards suggests improved utilization of equity capital through the period ending in early 2020. The introduction of right-of-use assets into fixed asset turnover metrics from mid-2018 led to lower turnover ratios, signifying the impact of changes in accounting standards on reported asset efficiency.

Revenue Trends

The revenue demonstrates an overall increasing trend from March 2015 through December 2019, with quarterly fluctuations. Starting at $3,513 million in March 2015, revenues gradually rise, peaking at $5,875 million in December 2017. Thereafter, some volatility is observed with quarterly revenues ranging between approximately $5,000 million and $5,400 million through 2018 and 2019. The last quarter reported, March 2020, shows a notable decline to $4,681 million, indicating a potential contraction or impact from external factors during that period.

Property and Equipment, Net

The net value of property and equipment shows considerable fluctuations over the periods. Initially recorded at $1,446 million in March 2015, the asset value drops significantly to $987 million by June 2015, followed by a modest increase and then a substantial surge to a peak of $2,411 million in September 2016. Subsequently, the net property and equipment values trend downward with minor variances, stabilizing around the $1,900 million mark by early 2020. This pattern suggests significant asset acquisitions or revaluations around late 2016, followed by a phase of reduction or depreciation.

Net Fixed Asset Turnover Ratio

This ratio, which reflects the efficiency in utilizing fixed assets to generate revenue, shows strong variability. Starting with very high values around 14 in mid-2015 and early 2016, there is a sudden decline to approximately 6.36 in December 2016, concurrent with the spike in asset values. Afterwards, the ratio gradually recovers, stabilizing around 10 to 12 from 2017 through early 2020. This inverse relationship between fixed asset turnover and asset value changes indicates that asset additions were not immediately matched by proportional revenue increases, but operational efficiency improved in subsequent periods.

Revenues

The revenue figures show a general upward trend from March 2015 through December 2019, with some fluctuations. Starting at $3,513 million in Q1 2015, revenues progressively increased to a peak of $5,875 million in Q4 2017. Thereafter, a mild decline and volatility are observed, with revenues ranging between approximately $5,009 million and $5,371 million from early 2018 to the end of 2019. A significant decline is recorded in Q1 2020, where revenues drop to $4,681 million, possibly indicating the initiation of adverse conditions affecting the business.

Property and Equipment, Net

The net value of property and equipment exhibits variability over the periods. Initially fluctuating around $985 million to $1,056 million until mid-2016, there is a marked increase in the period around late 2016 to early 2017, rising sharply to values over $2,300 million. After a peak at $2,940 million in Q1 2019, values generally decrease towards $2,636 million by Q1 2020. This pattern suggests significant asset acquisitions or revaluations in 2016-2019, followed by divestitures or depreciation impacts as the asset base contracts heading into 2020.

Net Fixed Asset Turnover

The net fixed asset turnover ratio demonstrates distinct phases. From mid-2015 to mid-2016, the ratio maintains high values around 14, signifying efficient use of fixed assets to generate revenue during this period. Beginning in late 2016, there is a notable decline to lower values ranging between approximately 6.36 and 7.83 toward early 2020. This decline coincides with the significant increase in property and equipment net book values, indicating that asset growth outpaced revenue growth, thereby reducing turnover efficiency.

The financial data over the analyzed period reveals several notable trends in revenues, total assets, and total asset turnover ratios.

Revenues

Revenues exhibited a generally increasing trend from the first quarter of 2015 through the end of 2017, rising from approximately 3,513 million USD to a peak near 5,875 million USD. However, starting in 2018, revenues showed more fluctuation. After an initial drop from the peak in late 2017, revenues experienced moderate recovery in mid-2018 but remained below the prior high. In the quarters leading up to early 2020, revenues fluctuated between roughly 5,000 million USD and 5,400 million USD. Notably, in the first quarter of 2020, revenues declined again to around 4,681 million USD, reflecting a downward adjustment relative to prior quarters.

Total Assets

The total assets figure displayed significant volatility, especially during 2016. Starting near 6,800 million USD in early 2015, assets dipped slightly but surged abruptly in mid-2016 to over 25,000 million USD. This elevated level of assets remained relatively stable through the subsequent years up to early 2020, fluctuating in a narrow range around 24,000 to 25,500 million USD. The sharp increase in mid-2016 represents a major balance sheet expansion likely related to a significant transaction or acquisition occurring during that period.

Total Asset Turnover

The total asset turnover ratio, representing how efficiently assets generate revenues, was calculated beginning in early 2016. Initial values in early 2016 were high, above 2.3, indicating strong revenue generation relative to assets. However, following the substantial increase in total assets in mid-2016, the ratio dropped markedly to between 0.6 and 0.7, reflecting the enlarged asset base. Over the subsequent quarters through early 2020, the ratio showed a gradual, modest improvement, reaching around 0.84 before a slight dip in the first quarter of 2020 to approximately 0.81. This suggests a modest recovery in asset utilization efficiency but still below early 2016 levels.

In summary, the data illustrates revenue growth until late 2017 followed by some volatility and a mild decline into 2020. Total assets underwent a significant increase in mid-2016 and then stabilized at the higher level. Correspondingly, asset turnover ratios declined sharply with the asset growth but exhibited gradual improvement thereafter, implying a progressive but incomplete adjustment to the expanded asset base. The revenue decline and slight asset turnover decrease toward early 2020 may warrant further investigation into potential operational challenges or market conditions impacting performance.

The financial data reveals several notable trends in revenues, shareholders’ equity, and equity turnover over the examined periods.

Revenues (US$ in millions)

The revenues demonstrate an overall upward trend from early 2015 through 2019, increasing from 3513 million in March 2015 to a peak of 5875 million in December 2017. Periodic fluctuations are observed, such as a decline during early 2018 and a rebound later that year. After 2019, revenues slightly decrease to 4681 million by March 2020, indicating a potential impact on sales or operational challenges in early 2020.

Shareholders’ Equity (Deficit) (US$ in millions)

The shareholders’ equity starts with significant negative values from 2015 (-2537 million) through mid-2016, reflecting a deficit situation. However, in September 2016, a substantial shift occurs as equity turns positive (5841 million) and continues to decline steadily through 2019 to near breakeven levels (-20 million by March 2020). This pattern suggests a major restructuring or recapitalization event around late 2016, followed by consistent reduction of equity value over subsequent quarters.

Equity Turnover (ratio)

This ratio is unavailable in the earlier periods but becomes available starting in late 2016, initially at 2.62 and increasing consistently over time, reaching an exceptionally high 29.83 by December 2019. This rapid ascent indicates improving efficiency in utilizing shareholders’ equity to generate revenues. The sharp rise in equity turnover correlates with the decrease in shareholders’ equity, signifying that despite diminishing equity base, revenue generation remained strong or even improved in efficiency terms.

In summary, the data suggests that while revenues generally grew until late 2019, and operational efficiency in terms of equity turnover increased markedly, shareholders’ equity shifted from a deficit to a positive state before steadily declining again to a near-deficit position by early 2020. The strong growth in equity turnover alongside declining equity may indicate heightened operational leverage or financial structuring dynamics. The decline in revenues and equity near the end of the period could reflect emerging challenges requiring further analysis.