Cash Flow Statement
The cash flow statement provides information about a company cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company balance sheet.
The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.
Marriott International Inc., consolidated cash flow statement
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).
The financial data over the five-year period reflects varied trends in profitability, cash flows, and capital management.
- Profitability and Income Statement Items
- Net income experienced fluctuations, starting at $859 million in 2015, declining slightly to $780 million in 2016, then increasing significantly to a peak of $1,907 million in 2018 before falling to $1,273 million in 2019. Depreciation, amortization, and other non-cash expenses showed a consistent upward trend, increasing from $139 million in 2015 to $403 million in 2019. Share-based compensation remained relatively stable around $180 million in the later years, with an initial rise from $113 million in 2015.
- Income taxes demonstrated considerable volatility, with positive amounts in 2015-2017 ($143 million, $76 million, and $828 million respectively) but negative in 2018 and 2019 (-$239 million and -$200 million), indicating tax benefits or adjustments during the latter years. The liability for the guest loyalty program increased notably from $233 million in 2015 to $520 million in 2018 but decreased sharply to $257 million in 2019. Contract acquisition costs appeared only in 2018 and 2019 as negative values, reflecting capitalized costs or adjustments related to contracts.
- Cash Flow from Operating Activities
- Net cash provided by operating activities generally grew until 2017, peaking at $2,436 million, followed by a slight decline in 2018 and a more substantial decrease to $1,685 million in 2019. Adjustments reconciling net income to cash flow also peaked in 2017 and declined thereafter. Working capital changes fluctuated between positive and negative impacts, with a negative effect in 2019 (-$273 million), indicating possible increased current liabilities or decreased current assets.
- Investing Activities
- Investing cash flows were volatile, with a large net outflow in 2016 (-$2,409 million) likely due to acquisitions, contrasted by a significant inflow in 2017 ($1,020 million). Capital expenditures rose considerably over the period, more than doubling from $305 million in 2015 to $653 million in 2019, suggesting substantial investment in property and equipment or other assets. Dispositions also varied, peaking in 2017 at $1,418 million before declining. Loan advances and collections remained relatively minor throughout.
- Financing Activities
- Net cash from financing activities showed large swings, with a major outflow in 2015 (-$1,805 million) corresponding with heavy purchase of treasury stock ($1,917 million) and dividends paid, followed by a strong inflow in 2016 ($1,589 million). In 2017 through 2019, financing activities resulted in negative cash flows, with notable repayments of long-term debt increasing over time, reaching $835 million in 2019. Issuance of long-term debt increased substantially in 2018 and 2019, partially offsetting repayments. Purchases of treasury stock remained significant but decreased from peak levels.
- Liquidity and Cash Position
- The cash, cash equivalents, and restricted cash balance saw notable changes. The ending cash balance surged from $96 million in 2015 to $858 million in 2016, then fell steadily over subsequent years, ending at $253 million in 2019. The year-to-year changes in cash demonstrate the variability of the company's operations and financing decisions impacting liquidity.
In summary, the company showed strong profitability gains up to 2018 followed by a decline in 2019. Capital expenditures increased, signaling ongoing investment, while cash generated from operations remained robust but declined towards the end of the period. Financing activities were marked by significant debt issuance and repayments and fluctuating treasury stock transactions, impacting overall cash levels. The tax and other non-cash adjustments reflect complexities in fiscal management, and changes in working capital suggest active management of short-term assets and liabilities.