Analysis of Debt
Total Debt (Carrying Amount)
Marriott International Inc., balance sheet: debt
US$ in millions
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).
- Current Portion of Long-Term Debt
- There is a clear upward trend in the current portion of long-term debt over the analyzed period. Starting at 300 million USD in 2015, this figure increased steadily each year, reaching 977 million USD by the end of 2019. The most significant annual increase occurred between 2017 and 2018, with the balance more than doubling from 398 million USD to 833 million USD. This pattern indicates a growing short-term debt obligation that requires imminent liquidity or refinancing strategies.
- Long-Term Debt Excluding Current Portion
- This category presents a less consistent pattern but overall demonstrates a substantial growth in long-term debt excluding the current portion. Beginning at 3,807 million USD in 2015, the amount more than doubled to 8,197 million USD by 2016, marking a significant rise. Although a slight decline is noted in 2017 to 7,840 million USD, the debt level resumed increasing subsequently, reaching 9,963 million USD in 2019. The fluctuations observed in 2017 may suggest refinancing activities or debt repayments partially offset by new issuances.
- Total Long-Term Debt Including Current Portion
- The total long-term debt (carrying amount) closely mirrors the trends seen in the components, rising from 4,107 million USD in 2015 to 10,940 million USD by the end of 2019. Notably, the sharpest increase occurred between 2015 and 2016, consistent with the jump in non-current debt. Subsequent years show moderate increases with a minor dip in 2017, aligning with the individual component fluctuations. The overall trend underscores a significant expansion in total debt over the period, which has more than doubled in five years, reflecting an increased leverage position.
- Insights
- The data indicate a strategic accumulation of debt, particularly long-term obligations, with an accelerating portion becoming due within the short term. The rise in current portion of long-term debt suggests upcoming refinancing or repayment needs, posing potential liquidity considerations. The sizeable increases between 2015 and 2016 suggest major financing events or capital restructuring. The company’s growing leverage necessitates careful monitoring of debt servicing capabilities and capital structure to maintain financial stability.
Total Debt (Fair Value)
| Dec 31, 2019 | |
|---|---|
| Selected Financial Data (US$ in millions) | |
| Current portion of long-term debt | 977) |
| Senior Notes, excluding current portion | 6,712) |
| Commercial paper | 3,197) |
| Finance lease obligations | 157) |
| Other long-term debt | 179) |
| Total long-term debt, including current portion (fair value) | 11,222) |
| Financial Ratio | |
| Debt, fair value to carrying amount ratio | 1.03 |
Based on: 10-K (reporting date: 2019-12-31).
Weighted-average Interest Rate on Debt
Weighted-average effective interest rate on debt: 3.34%
| Interest rate | Debt amount1 | Interest rate × Debt amount | Weighted-average interest rate2 |
|---|---|---|---|
| 3.40% | 349) | 12) | |
| 3.60% | 349) | 13) | |
| 3.40% | 398) | 14) | |
| 3.10% | 449) | 14) | |
| 4.00% | 346) | 14) | |
| 2.50% | 747) | 19) | |
| 3.30% | 744) | 25) | |
| 3.10% | 291) | 9) | |
| 2.80% | 332) | 9) | |
| 4.10% | 291) | 12) | |
| 4.20% | 444) | 19) | |
| 2.50% | 549) | 14) | |
| 4.40% | 347) | 15) | |
| 4.80% | 297) | 14) | |
| 2.50% | 299) | 7) | |
| 3.90% | 564) | 22) | |
| 2.40% | 543) | 13) | |
| 4.40% | 157) | 7) | |
| Total | 7,496) | 251) | |
| 3.34% | |||
Based on: 10-K (reporting date: 2019-12-31).
1 US$ in millions
2 Weighted-average interest rate = 100 × 251 ÷ 7,496 = 3.34%