Analysis of Liquidity Ratios
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Marriott International Inc., liquidity ratios
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Current ratio | 0.47 | 0.42 | 0.46 | 0.65 | 0.43 | |
| Quick ratio | 0.39 | 0.38 | 0.40 | 0.50 | 0.37 | |
| Cash ratio | 0.03 | 0.05 | 0.06 | 0.17 | 0.03 |
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).
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Marriott International Inc. current ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level. |
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Marriott International Inc. quick ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 not reaching 2017 level. |
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Marriott International Inc. cash ratio deteriorated from 2017 to 2018 and from 2018 to 2019. |
Current Ratio
Marriott International Inc., current ratio calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current assets | 3,127) | 2,706) | 2,747) | 3,371) | 1,384) | |
| Current liabilities | 6,677) | 6,437) | 6,010) | 5,147) | 3,233) | |
| Liquidity Ratio | ||||||
| Current ratio1 | 0.47 | 0.42 | 0.46 | 0.65 | 0.43 | |
| Benchmarks | ||||||
| Current Ratio, Competitors2 | ||||||
| Airbnb Inc. | — | — | — | — | — | |
| Booking Holdings Inc. | 1.83 | — | — | — | — | |
| Carnival Corp. & plc | 0.23 | 0.24 | — | — | — | |
| Chipotle Mexican Grill Inc. | 1.61 | — | — | — | — | |
| McDonald’s Corp. | 0.98 | — | — | — | — | |
| Starbucks Corp. | 0.92 | 2.20 | — | — | — | |
| Current Ratio, Sector | ||||||
| Consumer Services | 0.89 | — | — | — | — | |
| Current Ratio, Industry | ||||||
| Consumer Discretionary | 1.08 | — | — | — | — | |
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).
1 2019 Calculation
Current ratio = Current assets ÷ Current liabilities
= 3,127 ÷ 6,677 = 0.47
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Marriott International Inc. current ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level. |
Quick Ratio
Marriott International Inc., quick ratio calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cash and equivalents | 225) | 316) | 383) | 858) | 96) | |
| Accounts and notes receivable, net | 2,395) | 2,133) | 1,991) | 1,695) | 1,103) | |
| Total quick assets | 2,620) | 2,449) | 2,374) | 2,553) | 1,199) | |
| Current liabilities | 6,677) | 6,437) | 6,010) | 5,147) | 3,233) | |
| Liquidity Ratio | ||||||
| Quick ratio1 | 0.39 | 0.38 | 0.40 | 0.50 | 0.37 | |
| Benchmarks | ||||||
| Quick Ratio, Competitors2 | ||||||
| Airbnb Inc. | — | — | — | — | — | |
| Booking Holdings Inc. | 1.68 | — | — | — | — | |
| Carnival Corp. & plc | 0.11 | 0.15 | — | — | — | |
| Chipotle Mexican Grill Inc. | 1.44 | — | — | — | — | |
| McDonald’s Corp. | 0.86 | — | — | — | — | |
| Starbucks Corp. | 0.59 | 1.69 | — | — | — | |
| Quick Ratio, Sector | ||||||
| Consumer Services | 0.71 | — | — | — | — | |
| Quick Ratio, Industry | ||||||
| Consumer Discretionary | 0.77 | — | — | — | — | |
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).
1 2019 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 2,620 ÷ 6,677 = 0.39
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Marriott International Inc. quick ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 not reaching 2017 level. |
Cash Ratio
Marriott International Inc., cash ratio calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cash and equivalents | 225) | 316) | 383) | 858) | 96) | |
| Total cash assets | 225) | 316) | 383) | 858) | 96) | |
| Current liabilities | 6,677) | 6,437) | 6,010) | 5,147) | 3,233) | |
| Liquidity Ratio | ||||||
| Cash ratio1 | 0.03 | 0.05 | 0.06 | 0.17 | 0.03 | |
| Benchmarks | ||||||
| Cash Ratio, Competitors2 | ||||||
| Airbnb Inc. | — | — | — | — | — | |
| Booking Holdings Inc. | 1.36 | — | — | — | — | |
| Carnival Corp. & plc | 0.06 | 0.11 | — | — | — | |
| Chipotle Mexican Grill Inc. | 1.32 | — | — | — | — | |
| McDonald’s Corp. | 0.25 | — | — | — | — | |
| Starbucks Corp. | 0.45 | 1.57 | — | — | — | |
| Cash Ratio, Sector | ||||||
| Consumer Services | 0.50 | — | — | — | — | |
| Cash Ratio, Industry | ||||||
| Consumer Discretionary | 0.56 | — | — | — | — | |
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).
1 2019 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 225 ÷ 6,677 = 0.03
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Marriott International Inc. cash ratio deteriorated from 2017 to 2018 and from 2018 to 2019. |