Stock Analysis on Net
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.

Analysis of Income Taxes

Microsoft Excel

Income Tax Expense (Benefit)

Marriott International Inc., income tax expense (benefit), continuing operations

US$ in millions

Microsoft Excel
12 months ended: Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
U.S. Federal 272 169 1,253 203 167
U.S. State 57 94 152 41 40
Non-U.S. 161 284 178 56 50
Current 490 547 1,583 300 257
U.S. Federal (141) (10) (107) 61 131
U.S. State (39) 6 26 14 7
Non-U.S. 16 (105) (38) 29 1
Deferred (164) (109) (119) 104 139
Provision for income taxes 326 438 1,464 404 396

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).

Item Description The company
Current Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations. Marriott International Inc. current decreased from 2017 to 2018 and from 2018 to 2019.
Deferred Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations. Marriott International Inc. deferred increased from 2017 to 2018 but then decreased significantly from 2018 to 2019.
Provision for income taxes Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. Marriott International Inc. provision for income taxes decreased from 2017 to 2018 and from 2018 to 2019.

Effective Income Tax Rate (EITR)

Marriott International Inc., effective income tax rate (EITR) reconciliation

Microsoft Excel
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
U.S. statutory tax rate 21.00% 21.00% 35.00% 35.00% 35.00%
U.S. state income taxes, net of U.S. federal tax benefit 1.60% 2.50% 3.10% 2.90% 2.90%
Non-U.S. income -3.30% -1.00% -7.80% -6.80% -5.20%
Change in valuation allowance 3.40% 2.60% 2.10% 0.30% 1.20%
Change in uncertain tax positions 1.90% 1.00% 2.30% 1.50% 0.40%
Tax on asset dispositions -0.70% -2.90% 0.00% 0.00% 0.00%
Excess tax benefits related to equity awards -3.20% -1.80% -2.50% 0.00% 0.00%
Other, net 0.00% -1.10% 1.10% 1.20% -2.80%
Effective income tax rate, before Tax Cuts and Jobs Act of 2017 20.70% 20.30% 33.30% 34.10% 31.50%
Change in U.S. tax rate 0.00% -1.70% -5.60% 0.00% 0.00%
Transition Tax on foreign earnings -0.30% 0.10% 23.90% 0.00% 0.00%
Effective income tax rate 20.40% 18.70% 51.60% 34.10% 31.50%

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).

Item Description The company
Effective income tax rate, before Tax Cuts and Jobs Act of 2017 Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. Marriott International Inc. effective income tax rate, before Tax Cuts and Jobs Act of 2017 decreased from 2017 to 2018 but then slightly increased from 2018 to 2019.

Components of Deferred Tax Assets and Liabilities

Marriott International Inc., components of deferred tax assets and liabilities

US$ in millions

Microsoft Excel
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Employee benefits 267 261 274 430 348
Net operating loss carry-forwards 680 494 375 320 205
Accrued expenses and other reserves 162 160 145 204 63
Receivables, net 11 12 29 134 11
Tax credits 41 24 27 79 111
Loyalty Program 249 133 12 42 68
Deferred income 70 56 14 20 21
Lease liabilities 261 — — — —
Self-insurance — — 12 15 21
Other 15 13 — 32 34
Deferred tax assets 1,756 1,153 888 1,276 882
Valuation allowance (616) (428) (313) (249) (163)
Deferred tax assets after valuation allowance 1,140 725 575 1,027 719
Joint venture interests (55) (59) (43) (8) (49)
Property and equipment (82) (85) (47) (199) (3)
Intangibles (895) (876) (963) (1,724) (11)
Right-of-use assets (229) — — — —
Self-insurance (15) (19) — — —
Other — — (33) — —
Deferred tax liabilities (1,276) (1,039) (1,086) (1,931) (63)
Net deferred taxes (136) (314) (511) (904) 656

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).

Item Description The company
Deferred tax assets Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. Marriott International Inc. deferred tax assets increased from 2017 to 2018 and from 2018 to 2019.
Deferred tax assets after valuation allowance Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. Marriott International Inc. deferred tax assets after valuation allowance increased from 2017 to 2018 and from 2018 to 2019.
Net deferred taxes Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting. Marriott International Inc. net deferred taxes increased from 2017 to 2018 and from 2018 to 2019.

Deferred Tax Assets and Liabilities, Classification

Marriott International Inc., deferred tax assets and liabilities, classification

US$ in millions

Microsoft Excel
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Deferred tax assets 154 171 93 116 672
Deferred tax liabilities 290 485 604 1,020 16

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).

Item Description The company
Deferred tax assets Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, with jurisdictional netting and classified as noncurrent. Marriott International Inc. deferred tax assets increased from 2017 to 2018 but then slightly decreased from 2018 to 2019.
Deferred tax liabilities Amount, after deferred tax asset, of deferred tax liability attributable to taxable differences, with jurisdictional netting and classified as noncurrent. Marriott International Inc. deferred tax liabilities decreased from 2017 to 2018 and from 2018 to 2019.

Adjustments to Financial Statements: Removal of Deferred Taxes

Marriott International Inc., adjustments to financial statements

US$ in millions

Microsoft Excel
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Adjustment to Total Assets
Total assets (as reported) 25,051 23,696 23,948 24,140 6,082
Less: Noncurrent deferred tax assets, net 154 171 93 116 672
Total assets (adjusted) 24,897 23,525 23,855 24,024 5,410
Adjustment to Total Liabilities
Total liabilities (as reported) 24,348 21,471 20,217 18,783 9,672
Less: Noncurrent deferred tax liabilities, net 290 485 604 1,020 16
Total liabilities (adjusted) 24,058 20,986 19,613 17,763 9,656
Adjustment to Shareholders’ Equity (deficit)
Shareholders’ equity (deficit) (as reported) 703 2,225 3,731 5,357 (3,590)
Less: Net deferred tax assets (liabilities) (136) (314) (511) (904) 656
Shareholders’ equity (deficit) (adjusted) 839 2,539 4,242 6,261 (4,246)
Adjustment to Net Income
Net income (as reported) 1,273 1,907 1,372 780 859
Add: Deferred income tax expense (benefit) (164) (109) (119) 104 139
Net income (adjusted) 1,109 1,798 1,253 884 998

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).

Marriott International Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

Marriott International Inc., adjusted financial ratios

Microsoft Excel
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Net Profit Margin
Reported net profit margin 6.07% 9.19% 5.99% 4.57% 5.93%
Adjusted net profit margin 5.29% 8.66% 5.47% 5.18% 6.89%
Total Asset Turnover
Reported total asset turnover 0.84 0.88 0.96 0.71 2.38
Adjusted total asset turnover 0.84 0.88 0.96 0.71 2.68
Financial Leverage
Reported financial leverage 35.63 10.65 6.42 4.51 —
Adjusted financial leverage 29.67 9.27 5.62 3.84 —
Return on Equity (ROE)
Reported ROE 181.08% 85.71% 36.77% 14.56% —
Adjusted ROE 132.18% 70.82% 29.54% 14.12% —
Return on Assets (ROA)
Reported ROA 5.08% 8.05% 5.73% 3.23% 14.12%
Adjusted ROA 4.45% 7.64% 5.25% 3.68% 18.45%

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).

Financial ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Marriott International Inc. adjusted net profit margin ratio improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Marriott International Inc. adjusted total asset turnover ratio deteriorated from 2017 to 2018 and from 2018 to 2019.
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Marriott International Inc. adjusted financial leverage ratio increased from 2017 to 2018 and from 2018 to 2019.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. Marriott International Inc. adjusted ROE improved from 2017 to 2018 and from 2018 to 2019.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Marriott International Inc. adjusted ROA improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.

Marriott International Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Microsoft Excel
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
As Reported
Selected Financial Data (US$ in millions)
Net income 1,273 1,907 1,372 780 859
Revenues 20,972 20,758 22,894 17,072 14,486
Profitability Ratio
Net profit margin1 6.07% 9.19% 5.99% 4.57% 5.93%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income 1,109 1,798 1,253 884 998
Revenues 20,972 20,758 22,894 17,072 14,486
Profitability Ratio
Adjusted net profit margin2 5.29% 8.66% 5.47% 5.18% 6.89%

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).

2019 Calculations

1 Net profit margin = 100 × Net income ÷ Revenues
= 100 × 1,273 ÷ 20,972 = 6.07%

2 Adjusted net profit margin = 100 × Adjusted net income ÷ Revenues
= 100 × 1,109 ÷ 20,972 = 5.29%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Marriott International Inc. adjusted net profit margin ratio improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.

Adjusted Total Asset Turnover

Microsoft Excel
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
As Reported
Selected Financial Data (US$ in millions)
Revenues 20,972 20,758 22,894 17,072 14,486
Total assets 25,051 23,696 23,948 24,140 6,082
Activity Ratio
Total asset turnover1 0.84 0.88 0.96 0.71 2.38
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Revenues 20,972 20,758 22,894 17,072 14,486
Adjusted total assets 24,897 23,525 23,855 24,024 5,410
Activity Ratio
Adjusted total asset turnover2 0.84 0.88 0.96 0.71 2.68

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).

2019 Calculations

1 Total asset turnover = Revenues ÷ Total assets
= 20,972 ÷ 25,051 = 0.84

2 Adjusted total asset turnover = Revenues ÷ Adjusted total assets
= 20,972 ÷ 24,897 = 0.84

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Marriott International Inc. adjusted total asset turnover ratio deteriorated from 2017 to 2018 and from 2018 to 2019.

Adjusted Financial Leverage

Microsoft Excel
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
As Reported
Selected Financial Data (US$ in millions)
Total assets 25,051 23,696 23,948 24,140 6,082
Shareholders’ equity (deficit) 703 2,225 3,731 5,357 (3,590)
Solvency Ratio
Financial leverage1 35.63 10.65 6.42 4.51 —
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted total assets 24,897 23,525 23,855 24,024 5,410
Adjusted shareholders’ equity (deficit) 839 2,539 4,242 6,261 (4,246)
Solvency Ratio
Adjusted financial leverage2 29.67 9.27 5.62 3.84 —

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).

2019 Calculations

1 Financial leverage = Total assets ÷ Shareholders’ equity (deficit)
= 25,051 ÷ 703 = 35.63

2 Adjusted financial leverage = Adjusted total assets ÷ Adjusted shareholders’ equity (deficit)
= 24,897 ÷ 839 = 29.67

Solvency ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Marriott International Inc. adjusted financial leverage ratio increased from 2017 to 2018 and from 2018 to 2019.

Adjusted Return on Equity (ROE)

Microsoft Excel
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
As Reported
Selected Financial Data (US$ in millions)
Net income 1,273 1,907 1,372 780 859
Shareholders’ equity (deficit) 703 2,225 3,731 5,357 (3,590)
Profitability Ratio
ROE1 181.08% 85.71% 36.77% 14.56% —
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income 1,109 1,798 1,253 884 998
Adjusted shareholders’ equity (deficit) 839 2,539 4,242 6,261 (4,246)
Profitability Ratio
Adjusted ROE2 132.18% 70.82% 29.54% 14.12% —

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).

2019 Calculations

1 ROE = 100 × Net income ÷ Shareholders’ equity (deficit)
= 100 × 1,273 ÷ 703 = 181.08%

2 Adjusted ROE = 100 × Adjusted net income ÷ Adjusted shareholders’ equity (deficit)
= 100 × 1,109 ÷ 839 = 132.18%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. Marriott International Inc. adjusted ROE improved from 2017 to 2018 and from 2018 to 2019.

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
As Reported
Selected Financial Data (US$ in millions)
Net income 1,273 1,907 1,372 780 859
Total assets 25,051 23,696 23,948 24,140 6,082
Profitability Ratio
ROA1 5.08% 8.05% 5.73% 3.23% 14.12%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income 1,109 1,798 1,253 884 998
Adjusted total assets 24,897 23,525 23,855 24,024 5,410
Profitability Ratio
Adjusted ROA2 4.45% 7.64% 5.25% 3.68% 18.45%

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).

2019 Calculations

1 ROA = 100 × Net income ÷ Total assets
= 100 × 1,273 ÷ 25,051 = 5.08%

2 Adjusted ROA = 100 × Adjusted net income ÷ Adjusted total assets
= 100 × 1,109 ÷ 24,897 = 4.45%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Marriott International Inc. adjusted ROA improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.