Marriott International Inc. (NASDAQ:MAR)

The liquidity profile from 2015 to 2019 exhibits a consistent pattern where current liabilities exceed current assets, as evidenced by all liquidity ratios remaining below 1.0 throughout the period. While there was a temporary improvement in liquidity metrics in 2016, the company returned to a baseline of low short-term coverage in subsequent years.

Current Ratio

The ratio fluctuated between a low of 0.42 in 2018 and a peak of 0.65 in 2016. Following the 2016 increase, the ratio stabilized within a narrow range of 0.42 to 0.47, indicating a persistent gap between short-term assets and obligations.

Quick Ratio

A trend mirroring the current ratio is observed, with a peak of 0.50 in 2016 and a subsequent decline to approximately 0.39 by 2019. The minimal variance between the current and quick ratios suggests that inventories constitute a negligible portion of the current asset base.

Cash Ratio

Cash liquidity remained significantly constrained, starting and ending the period at 0.03. A notable increase to 0.17 was recorded in 2016, but this was followed by a steady decrease, returning to the initial baseline by 2019, highlighting a minimal reliance on cash holdings to cover immediate liabilities.

An analysis of the liquidity position from 2015 to 2019 reveals a consistent trend where current liabilities exceed current assets. The liquidity profile is characterized by a current ratio that remains below 1.0 throughout the observed period, indicating that short-term obligations are not fully covered by short-term assets.

Current Asset Trends

Current assets exhibited significant volatility, starting at US$ 1,384 million in 2015 and rising sharply to a peak of US$ 3,371 million in 2016. Following this peak, assets experienced a moderate decline and stabilization, ending the period at US$ 3,127 million in 2019.

Current Liability Trajectory

A continuous and steady upward trend is observed in current liabilities. Obligations grew from US$ 3,233 million in 2015 to US$ 6,677 million in 2019, representing a substantial increase in the company's short-term financial commitments over the five-year span.

Current Ratio Interpretation

The current ratio reached its highest point in 2016 at 0.65, driven by the surge in current assets. However, the ratio subsequently contracted and remained relatively stagnant, fluctuating between 0.42 and 0.47 from 2017 through 2019. The persistence of a ratio well below 1.0 suggests a reliance on operational cash flows or external financing to manage short-term liabilities rather than relying on liquid asset reserves.

The liquidity position of the entity between 2015 and 2019 is characterized by a consistent inability to cover current liabilities with quick assets, as evidenced by a quick ratio that remained below 1.0 throughout the entire period.

Total Quick Assets Trend

A substantial increase in total quick assets occurred between 2015 and 2016, rising from 1,199 million US$ to 2,553 million US$. Following this initial surge, the assets exhibited relative stability with minor fluctuations, eventually reaching 2,620 million US$ by December 31, 2019.

Current Liabilities Growth

Current liabilities demonstrated a continuous upward trajectory over the five-year period. Starting at 3,233 million US$ in 2015, obligations increased significantly to 5,147 million US$ in 2016 and continued to climb steadily each year, concluding the period at 6,677 million US$ in 2019.

Quick Ratio Analysis

The quick ratio experienced a peak of 0.50 in 2016, coinciding with the sharp increase in quick assets. However, this improvement was temporary, as the ratio declined to 0.40 in 2017 and stabilized between 0.38 and 0.39 through 2019. The persistent gap between the ratio and the 1.0 benchmark indicates a structural reliance on non-quick current assets or continuous cash flow from operations to meet short-term obligations.

The overall trend indicates that while quick assets grew in absolute terms, the growth of current liabilities outpaced asset accumulation. This resulted in a stagnant liquidity profile where the company's immediate debt-paying capacity remained constrained despite the increase in the total volume of liquid resources.

The analysis of liquidity from 2015 to 2019 reveals a consistent expansion of short-term obligations contrasted with volatile cash holdings, resulting in a generally low cash ratio throughout the period.

Current Liabilities Trend

A steady and significant upward trajectory is observed in current liabilities, which increased from 3,233 million US$ in 2015 to 6,677 million US$ by 2019. This represents more than a twofold increase in short-term obligations over the five-year span.

Cash Asset Volatility

Total cash assets exhibited significant fluctuations, peaking in 2016 at 858 million US$. Following this peak, a consistent downward trend occurred, with cash assets declining to 225 million US$ by the end of 2019.

Cash Ratio Interpretation

The cash ratio remained low for the majority of the analyzed period, starting at 0.03 in 2015 and returning to 0.03 in 2019. An isolated peak of 0.17 was recorded in 2016, corresponding with the surge in total cash assets. The subsequent decline to 0.06 in 2017 and 0.05 in 2018 indicates a diminished capacity to cover current liabilities using only cash and cash equivalents.

The convergence of rising liabilities and decreasing cash reserves suggests a liquidity strategy that does not rely on maintaining high levels of immediate cash. The low cash ratio indicates that short-term obligations are likely managed through other current assets or operational cash flows rather than through static cash reserves.