Operating Profit Margin
since 2005
Calculation
Marriott International Inc., operating profit margin, long-term trends, calculation
| Operating profit margin | = | 100 | × | Operating income (loss)1 | ÷ | Revenues1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2019 | 8.58% | = | 100 | × | 1,800) | ÷ | 20,972) |
| Dec 31, 2018 | 11.40% | = | 100 | × | 2,366) | ÷ | 20,758) |
| Dec 31, 2017 | 10.30% | = | 100 | × | 2,359) | ÷ | 22,894) |
| Dec 31, 2016 | 8.01% | = | 100 | × | 1,368) | ÷ | 17,072) |
| Dec 31, 2015 | 9.32% | = | 100 | × | 1,350) | ÷ | 14,486) |
| Dec 31, 2014 | 8.40% | = | 100 | × | 1,159) | ÷ | 13,796) |
| Dec 31, 2013 | 7.73% | = | 100 | × | 988) | ÷ | 12,784) |
| Dec 28, 2012 | 7.96% | = | 100 | × | 940) | ÷ | 11,814) |
| Dec 30, 2011 | 4.27% | = | 100 | × | 526) | ÷ | 12,317) |
| Dec 31, 2010 | 5.94% | = | 100 | × | 695) | ÷ | 11,691) |
| Jan 1, 2010 | -1.39% | = | 100 | × | (152) | ÷ | 10,908) |
| Jan 2, 2009 | 6.10% | = | 100 | × | 785) | ÷ | 12,879) |
| Dec 28, 2007 | 9.15% | = | 100 | × | 1,188) | ÷ | 12,990) |
| Dec 29, 2006 | 8.31% | = | 100 | × | 1,011) | ÷ | 12,160) |
| Dec 30, 2005 | 4.81% | = | 100 | × | 555) | ÷ | 11,550) |
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
- Revenues
- Revenues exhibit a general upward trend from 2005 through 2019, increasing from $11,550 million in 2005 to $20,972 million in 2019. However, revenue declined notably in 2009 to $12,879 million from a previous high of $12,990 million in 2007, likely reflecting economic challenges during that period. A recovery phase is observable with revenues rising again from 2010 onward, reaching a peak of $22,894 million in 2018, before a moderate decrease in 2019.
- Operating Income (Loss)
- Operating income demonstrated significant variability over the analyzed years. Starting at $555 million in 2005, it rose to a peak of $1,188 million in 2007 before declining sharply in 2010 to a loss of $152 million, corresponding with decreased revenues and reflecting operational difficulties. Post-2010, operating income mostly recovered, reaching a maximum of $2,366 million in 2018, followed by a decline to $1,800 million in 2019. This volatility suggests sensitivity to external economic conditions and possibly internal operational challenges.
- Operating Profit Margin
- The operating profit margin tracked fluctuations consistent with operating income trends. Starting at 4.81% in 2005, the margin improved steadily to above 9% by 2007, but fell to negative territory (-1.39%) in 2010, highlighting a period of operational loss. Subsequently, the margin recovered, reaching values above 10% by 2017 and 2018, indicating improved efficiency or favorable market conditions during this period. In 2019, the margin decreased to 8.58%, signaling some erosion in profitability.
- Overall Observations
- The data indicates that while revenues have grown significantly over the long term, operating income and profit margins have experienced more volatility, particularly around the 2009-2010 period, likely due to economic downturn effects. Subsequent recovery demonstrates increases in both operational performance and profitability margins, peaking near 2017-2018 before a slight decline in 2019. The company appears to have strengthened its operational efficiency post-crisis but continues to face challenges that impact profitability to some extent.
Comparison to Competitors
Marriott International Inc., operating profit margin, 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 | 8.58% | — | 35.48% | 7.95% | — | 43.03% | 15.38% |
| Dec 31, 2018 | 11.40% | — | 36.77% | 5.31% | — | 41.96% | 15.71% |
| Dec 31, 2017 | 10.30% | — | 35.79% | 6.05% | — | 41.86% | 18.47% |
| Dec 31, 2016 | 8.01% | — | 27.05% | 0.89% | — | 31.45% | 19.57% |
| Dec 31, 2015 | 9.32% | — | 35.33% | 16.96% | — | 28.12% | 18.79% |
| Dec 31, 2014 | 8.40% | — | 36.41% | 17.30% | — | 28.97% | 18.73% |
| Dec 31, 2013 | 7.73% | — | 35.51% | 16.57% | — | 31.18% | -2.19% |
| Dec 28, 2012 | 7.96% | — | 34.78% | 16.69% | — | 31.21% | 15.02% |
| Dec 30, 2011 | 4.27% | — | 32.12% | 15.45% | — | 31.58% | 14.77% |
| Dec 31, 2010 | 5.94% | — | 25.50% | 15.68% | — | 31.04% | 13.26% |
| Jan 1, 2010 | -1.39% | — | 20.14% | 13.42% | — | 30.08% | 5.75% |
| Jan 2, 2009 | 6.10% | — | 15.36% | 9.31% | — | 27.39% | 4.85% |
| Dec 28, 2007 | 9.15% | — | 9.79% | 9.96% | — | 17.02% | 11.20% |
| Dec 29, 2006 | 8.31% | — | 5.52% | 7.53% | — | 20.59% | 11.48% |
| Dec 30, 2005 | 4.81% | — | 3.73% | 4.94% | — | 19.66% | 12.26% |
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).