Debt to Equity
since 2005
Calculation
Marriott International Inc., debt to equity, long-term trends, calculation
| Debt to equity | = | Long-term debt, including current portion1 | ÷ | Shareholders’ equity (deficit)1 | |
|---|---|---|---|---|---|
| Dec 31, 2019 | 15.56 | = | 10,940) | ÷ | 703) |
| Dec 31, 2018 | 4.20 | = | 9,347) | ÷ | 2,225) |
| Dec 31, 2017 | 2.21 | = | 8,238) | ÷ | 3,731) |
| Dec 31, 2016 | 1.59 | = | 8,506) | ÷ | 5,357) |
| Dec 31, 2015 | — | = | 4,107) | ÷ | (3,590) |
| Dec 31, 2014 | — | = | 3,781) | ÷ | (2,200) |
| Dec 31, 2013 | — | = | 3,153) | ÷ | (1,415) |
| Dec 28, 2012 | — | = | 2,935) | ÷ | (1,285) |
| Dec 30, 2011 | — | = | 2,171) | ÷ | (781) |
| Dec 31, 2010 | 1.78 | = | 2,829) | ÷ | 1,585) |
| Jan 1, 2010 | 2.01 | = | 2,298) | ÷ | 1,142) |
| Jan 2, 2009 | 2.24 | = | 3,095) | ÷ | 1,380) |
| Dec 28, 2007 | 2.07 | = | 2,965) | ÷ | 1,429) |
| Dec 29, 2006 | 0.70 | = | 1,833) | ÷ | 2,618) |
| Dec 30, 2005 | 0.53 | = | 1,737) | ÷ | 3,252) |
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), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-28), 10-K (reporting date: 2011-12-30), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2010-01-01), 10-K (reporting date: 2009-01-02), 10-K (reporting date: 2007-12-28), 10-K (reporting date: 2006-12-29), 10-K (reporting date: 2005-12-30).
1 US$ in millions
The financial trajectory between 2005 and 2019 is characterized by a substantial increase in total leverage and significant volatility in shareholders' equity. While the period began with a conservative capital structure, it concluded with a highly leveraged position, driven by both an increase in long-term debt and a narrowing equity base.
- Long-Term Debt Trends
- Long-term debt exhibited a consistent upward trend over the fifteen-year period. From 2005 to 2015, debt grew steadily from 1,737 million US$ to 4,107 million US$. A significant escalation occurred in 2016, where debt more than doubled to 8,506 million US$, continuing to climb to 10,940 million US$ by December 31, 2019.
- Shareholders' Equity Volatility
- Shareholders' equity experienced extreme fluctuations, including a prolonged period of deficit. Equity declined from 3,252 million US$ in 2005 to a deficit of 781 million US$ by 2011. This deficit widened annually, reaching its lowest point of 3,590 million US$ in 2015. A sharp reversal occurred in 2016, with equity returning to a positive 5,357 million US$, followed by a steady decline to 703 million US$ by 2019.
- Debt to Equity Ratio Analysis
- The debt to equity ratio reflects the combined impact of rising debt and fluctuating equity. The ratio rose from a low of 0.53 in 2005 to 2.24 by 2009. Between 2011 and 2015, the ratio is not recorded, coinciding with the period of negative shareholders' equity. Following the equity recovery in 2016, the ratio was 1.59, but it escalated rapidly thereafter, reaching 4.20 in 2018 and peaking at 15.56 in 2019.
The convergence of increasing long-term obligations and a diminishing equity cushion resulted in a dramatic expansion of the leverage ratio toward the end of the analyzed period. This suggests a fundamental shift in the capital structure toward a much higher reliance on debt financing.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
How can I help you?
Comparison to Competitors
Marriott International Inc., debt to equity, long-term trends, comparison to competitors
| Marriott International Inc. | Airbnb Inc. | Booking Holdings Inc. | Chipotle Mexican Grill Inc. | DoorDash, Inc. | McDonald’s Corp. | Starbucks Corp. | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2019 | 15.56 | — | 1.45 | 0.00 | — | — | — |
| Dec 31, 2018 | 4.20 | — | 0.98 | 0.00 | — | — | 8.07 |
| Dec 31, 2017 | 2.21 | — | 0.85 | 0.00 | — | — | 0.72 |
| Dec 31, 2016 | 1.59 | — | 0.73 | 0.00 | — | — | 0.61 |
| Dec 31, 2015 | — | — | 0.70 | 0.00 | — | 3.40 | 0.40 |
| Dec 31, 2014 | — | — | 0.45 | 0.00 | — | 1.17 | 0.39 |
| Dec 31, 2013 | — | — | 0.28 | 0.00 | — | 0.88 | 0.29 |
| Dec 28, 2012 | — | — | 0.37 | 0.00 | — | 0.89 | 0.11 |
| Dec 30, 2011 | — | — | 0.22 | 0.00 | — | 0.87 | 0.13 |
| Dec 31, 2010 | 1.78 | — | 0.26 | 0.00 | — | 0.79 | 0.15 |
| Jan 1, 2010 | 2.01 | — | 0.15 | 0.00 | — | 0.75 | 0.18 |
| Jan 2, 2009 | 2.24 | — | 0.54 | 0.00 | — | 0.76 | 0.51 |
| Dec 28, 2007 | 2.07 | — | 0.98 | 0.00 | — | 0.61 | 0.55 |
| Dec 29, 2006 | 0.70 | — | 1.63 | 0.00 | — | 0.55 | 0.32 |
| Dec 30, 2005 | 0.53 | — | 0.61 | 0.00 | — | 0.67 | 0.13 |
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), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-28), 10-K (reporting date: 2011-12-30), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2010-01-01), 10-K (reporting date: 2009-01-02), 10-K (reporting date: 2007-12-28), 10-K (reporting date: 2006-12-29), 10-K (reporting date: 2005-12-30).
Comparison to Sector (Consumer Services)
Marriott International Inc., debt to equity, long-term trends, comparison to sector (consumer services)
| Marriott International Inc. | Consumer Services | |
|---|---|---|
| Dec 31, 2019 | 15.56 | — |
| Dec 31, 2018 | 4.20 | 9.57 |
| Dec 31, 2017 | 2.21 | 2.90 |
| Dec 31, 2016 | 1.59 | 2.46 |
| Dec 31, 2015 | — | 1.37 |
| Dec 31, 2014 | — | 0.73 |
| Dec 31, 2013 | — | 0.60 |
| Dec 28, 2012 | — | 0.61 |
| Dec 30, 2011 | — | 0.61 |
| Dec 31, 2010 | 1.78 | 0.60 |
| Jan 1, 2010 | 2.01 | 0.59 |
| Jan 2, 2009 | 2.24 | 0.69 |
| Dec 28, 2007 | 2.07 | 0.60 |
| Dec 29, 2006 | 0.70 | 0.52 |
| Dec 30, 2005 | 0.53 | 0.59 |
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), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-28), 10-K (reporting date: 2011-12-30), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2010-01-01), 10-K (reporting date: 2009-01-02), 10-K (reporting date: 2007-12-28), 10-K (reporting date: 2006-12-29), 10-K (reporting date: 2005-12-30).
Comparison to Industry (Consumer Discretionary)
Marriott International Inc., debt to equity, long-term trends, comparison to industry (consumer discretionary)
| Marriott International Inc. | Consumer Discretionary | |
|---|---|---|
| Dec 31, 2019 | 15.56 | 2.60 |
| Dec 31, 2018 | 4.20 | 2.59 |
| Dec 31, 2017 | 2.21 | 2.55 |
| Dec 31, 2016 | 1.59 | 2.21 |
| Dec 31, 2015 | — | 1.88 |
| Dec 31, 2014 | — | 1.60 |
| Dec 31, 2013 | — | 1.25 |
| Dec 28, 2012 | — | 1.19 |
| Dec 30, 2011 | — | 1.09 |
| Dec 31, 2010 | 1.78 | 1.26 |
| Jan 1, 2010 | 2.01 | 2.58 |
| Jan 2, 2009 | 2.24 | 4.06 |
| Dec 28, 2007 | 2.07 | 2.62 |
| Dec 29, 2006 | 0.70 | 2.96 |
| Dec 30, 2005 | 0.53 | 2.35 |
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), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-28), 10-K (reporting date: 2011-12-30), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2010-01-01), 10-K (reporting date: 2009-01-02), 10-K (reporting date: 2007-12-28), 10-K (reporting date: 2006-12-29), 10-K (reporting date: 2005-12-30).