Analysis of Property, Plant and Equipment
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- Analysis of Solvency Ratios
- Analysis of Short-term (Operating) Activity Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Enterprise Value to EBITDA (EV/EBITDA)
- Price to FCFE (P/FCFE)
- Capital Asset Pricing Model (CAPM)
- Present Value of Free Cash Flow to Equity (FCFE)
- Return on Assets (ROA) since 2005
- Current Ratio since 2005
- Aggregate Accruals
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Property, Plant and Equipment Disclosure
Marriott International Inc., balance sheet: property, plant and equipment
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).
- Land
- The value of land showed an overall increasing trend from 2015 to 2019. Starting at 299 million USD in 2015, it rose sharply to 654 million USD in 2016, followed by a slight decline in subsequent years, with a final value of 684 million USD in 2019. This indicates a significant increase in land holdings or value during the earlier period, stabilizing thereafter.
- Buildings and Leasehold Improvements
- Buildings and leasehold improvements experienced considerable fluctuations. The value increased from 729 million USD in 2015 to a peak of 1352 million USD in 2016, then declined to 1052 million USD in 2017. It rose again to 1275 million USD in 2018 before decreasing to 1100 million USD in 2019. This pattern suggests periodic investments and disposals or impairments affecting this category.
- Furniture and Equipment
- Furniture and equipment values increased substantially from 768 million USD in 2015 to 1159 million USD in 2016, followed by a minor decrease to 1121 million USD in 2017. The value peaked at 1439 million USD in 2018, then decreased to 1225 million USD in 2019. The fluctuations point to ongoing asset acquisitions and retirements or write-downs within this category.
- Construction in Progress
- Construction in progress displayed a generally upward trend over the period. Starting at 130 million USD in 2015, it increased steadily to 196 million USD by 2019, with some modest fluctuations. This upward movement could indicate sustained investment in ongoing projects and future expansions.
- Property and Equipment, Gross
- The gross value of property and equipment showed significant volatility. After rising from 1926 million USD in 2015 to a high of 3320 million USD in 2016, it fell to 2890 million USD in 2017 before climbing again to 3473 million USD in 2018. The value then declined to 3205 million USD in 2019. These changes reflect the combined impact of asset acquisitions, disposals, and possibly reclassifications.
- Accumulated Depreciation
- Accumulated depreciation increased steadily from -897 million USD in 2015 to a peak of -1517 million USD in 2018, followed by a decrease to -1301 million USD in 2019. The initial increase is consistent with depreciation expense accumulation over time. The decline in 2019 could indicate asset retirements or adjustments that reduced the accumulated depreciation balance.
- Property and Equipment, Net
- The net value of property and equipment showed marked fluctuations. Beginning at 1029 million USD in 2015, it increased sharply to 2335 million USD in 2016, then declined to 1793 million USD in 2017. It recovered moderately to 1956 million USD in 2018, followed by a slight drop to 1904 million USD in 2019. These fluctuations reflect the net effect of acquisitions, disposals, depreciation, and impairment activities over the years.
Asset Age Ratios (Summary)
Marriott International Inc., asset age ratios
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).
- Average Age Ratio
- The average age ratio shows a fluctuating trend over the five-year period. It decreased significantly from 55.13% at the end of 2015 to 36.95% by the end of 2016, indicating a younger asset base or recent acquisition. Following this, the ratio increased to 47.92% in 2017 and further to 52.64% in 2018, before slightly declining to 51.61% in 2019. Overall, the ratio suggests variability in the age profile of the assets, with a general tendency toward moderate aging by the end of the period.
- Estimated Total Useful Life
- The estimated total useful life of the assets demonstrated a downward trend from 2016 onwards. Starting at 12 years in 2015, the estimated life increased to 17 years in 2016, which could imply the inclusion of assets with longer expected usage periods. However, this value declined substantially over the following years to 10 years in 2017, 11 years in 2018, and further down to 7 years by 2019. This reduction may indicate either accelerated depreciation policies, changes in asset composition towards shorter-lived items, or revisions in asset life estimates.
- Estimated Age, Time Elapsed Since Purchase
- This metric fluctuated slightly, decreasing initially from 7 years in 2015 to 6 years in 2016, then continuing a gradual decline to 5 years in 2017, a rise back to 6 years in 2018, and finally reducing to 4 years in 2019. The overall downtrend suggests an infusion of newer assets into the company’s portfolio over the analyzed period.
- Estimated Remaining Life
- The estimated remaining life exhibited variability but generally trended downward. It started at 6 years in 2015, increased notably to 11 years in 2016, indicating an extension in asset usability or recent asset additions with long remaining lives. Following that peak, it declined sharply to 5 years in 2017 and remained stable at 5 years in 2018, before decreasing further to 4 years in 2019. The data suggests that while asset renewals occurred, the remaining lifespan of the overall asset base shortened towards the end of the period.
Average Age
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Accumulated depreciation | ||||||
| Property and equipment, gross | ||||||
| Land | ||||||
| Asset Age Ratio | ||||||
| Average age1 | ||||||
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 Average age = 100 × Accumulated depreciation ÷ (Property and equipment, gross – Land)
= 100 × ÷ ( – ) =
- Accumulated Depreciation
- The accumulated depreciation value increased steadily from 897 million US dollars in 2015 to a peak of 1517 million in 2018, indicating ongoing depreciation of property and equipment assets. However, in 2019, there was a decline to 1301 million, suggesting possible asset disposals or changes in depreciation methods during that year.
- Property and Equipment, Gross
- Gross property and equipment values showed significant fluctuation over the period. There was a sharp rise from 1926 million in 2015 to 3320 million in 2016, followed by a decrease to 2890 million in 2017. The value rebounded to 3473 million in 2018 before declining again to 3205 million in 2019. These variations suggest periods of capital investment combined with asset retirements or revaluations.
- Land
- The value of land holdings experienced general growth over the years. Starting at 299 million in 2015, there was a more than twofold increase to 654 million in 2016. After a slight decline in 2017 and 2018, the land value increased again to 684 million in 2019. This trend indicates sustained acquisition or revaluation of land assets despite some year-to-year volatility.
- Average Age Ratio
- The average age ratio, reflecting the relative age of the property and equipment, declined sharply from 55.13% in 2015 to 36.95% in 2016, suggesting significant additions or refurbishments of newer assets during that period. From 2017 to 2019, the ratio stabilized around the low fifties, indicating a moderately aging asset base with some consistency in asset renewal or disposal activities.
Estimated Total Useful Life
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 Estimated total useful life = (Property and equipment, gross – Land) ÷ Gross depreciation expense
= ( – ) ÷ =
- Property and Equipment, Gross
- The gross value exhibited a notable increase from 2015 to 2016, rising from 1,926 million USD to 3,320 million USD. This was followed by a decline in 2017 to 2,890 million USD, then an increase in 2018 to 3,473 million USD, and a slight decrease again in 2019 to 3,205 million USD. Overall, there is considerable volatility with a general upward trend over the five-year period, but the fluctuations suggest variability in capital investment or asset disposal during these years.
- Land
- The value of land showed significant growth from 299 million USD in 2015 to 654 million USD in 2016, indicating substantial acquisition or revaluation. A slight reduction was observed in 2017 and 2018, with values of 601 million USD and 591 million USD respectively, followed by an increase to 684 million USD in 2019. This pattern suggests periodic adjustments and investments in land holdings, with a general upward trajectory.
- Gross Depreciation Expense
- There was a consistent increase in gross depreciation expense from 132 million USD in 2015 to 346 million USD in 2019. The expense rose steadily each year, reflecting either increasing asset base, accelerated depreciation methods, or a mix of both. The significant rise in depreciation expense over the period could impact net income and asset valuations.
- Estimated Total Useful Life
- The estimated total useful life of the assets displayed a decreasing trend over the years, from 12 years in 2015 up to 17 years in 2016, then declining sharply to 10 years in 2017, 11 years in 2018, and reaching 7 years in 2019. This reduction may imply changes in asset composition, adoption of more conservative depreciation policies, or accelerated wear and tear expectations.
Estimated Age, Time Elapsed since Purchase
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 Time elapsed since purchase = Accumulated depreciation ÷ Gross depreciation expense
= ÷ =
- Accumulated Depreciation
- The accumulated depreciation shows an overall increasing trend from 2015 to 2018, rising from 897 million USD in 2015 to 1517 million USD in 2018. However, in 2019, there is a noticeable decline to 1301 million USD.
- Gross Depreciation Expense
- The gross depreciation expense consistently increases each year during the period observed. It starts at 132 million USD in 2015 and rises steadily, reaching 346 million USD in 2019. This indicates increasing annual charges for depreciation.
- Time Elapsed Since Purchase
- This measure fluctuates over the years without a clear trend. It begins at 7 years in 2015, decreases to 5 years in 2017, slightly increases again to 6 years in 2018, and then decreases to 4 years in 2019. This suggests variability in the age of assets during the period.
- Insight on Trends
- The increasing gross depreciation expense coupled with the general rise in accumulated depreciation up to 2018 indicates ongoing asset usage and aging. The decline in accumulated depreciation in 2019 might be attributed to asset disposals or revaluations. The fluctuations in time elapsed since purchase suggest changing asset acquisition or disposal patterns over the years.
Estimated Remaining Life
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 Estimated remaining life = (Property and equipment, net – Land) ÷ Gross depreciation expense
= ( – ) ÷ =
The analysis of the annual property, plant, and equipment data reveals several notable trends over the five-year period under consideration. The net value of property and equipment exhibited considerable fluctuations. It increased significantly from 1,029 million US dollars at the end of 2015 to 2,335 million US dollars in 2016, indicating a substantial investment or revaluation during this period. However, this was followed by a decline to 1,793 million US dollars in 2017, a modest rebound to 1,956 million US dollars in 2018, and a slight decrease again in 2019 to 1,904 million US dollars. These changes suggest fluctuating asset management or revaluation strategies within these years.
The land value showed a generally increasing trend, rising from 299 million US dollars in 2015 to 684 million US dollars in 2019. The increase was steady despite minor decreases in some years, demonstrating ongoing acquisition or appreciation of the land holdings.
Gross depreciation expense steadily increased throughout the period, starting at 132 million US dollars in 2015 and reaching 346 million US dollars by 2019. The rising depreciation expense reflects either growing asset bases subject to depreciation or perhaps shortened useful lives of assets leading to higher annual depreciation charges.
The estimated remaining life of the assets displayed a varying trend, peaking at 11 years in 2016, but declining thereafter to 4 years by 2019. This suggests a trend toward shorter asset useful lives, which could impact depreciation rates and net asset values going forward, indicating a possible acceleration in asset usage or changes in asset composition.
- Net Property and Equipment Value
- Significant increase from 2015 to 2016, followed by a decline and minor fluctuations through 2019.
- Land Value
- Overall upward trend with some fluctuations, increasing more than double by 2019 compared to 2015.
- Gross Depreciation Expense
- Consistent increase over the five-year period, more than doubling from 2015 to 2019.
- Estimated Remaining Life
- Peaked in 2016 and decreased steadily afterward, indicating shortening asset lifespans or changing asset profiles.