Analysis of Liquidity Ratios
Quarterly Data
Liquidity ratios measure the company ability to meet its short-term obligations.
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Liquidity Ratios (Summary)
Marriott International Inc., liquidity ratios (quarterly data)
Based on: 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31).
- Current Ratio
- The current ratio shows a general trend of fluctuation with values predominantly below 1, indicating limited short-term liquidity relative to current liabilities. From March 2015 to December 2015, the ratio decreases steadily from 0.6 to 0.43, suggesting a declining ability to cover short-term obligations. Following this, it improves to a peak of 0.72 in September 2016 before gradually declining again through 2018 and into early 2019, with values oscillating mostly between 0.42 and 0.51. An uptick to 0.62 at the end of the observed period (March 2020) could indicate a strengthening in liquidity, possibly related to changing operational or financial strategies.
- Quick Ratio
- The quick ratio mirrors the current ratio’s overall trend but remains consistently lower, reflecting the exclusion of inventories from liquid assets. Starting at 0.43 in March 2015, it decreases to a low of 0.35 by September 2015, then recovers to 0.56 by June 2016. Through 2017 and 2018, the ratio stays relatively stable, hovering around 0.4 to 0.46, before increasing slightly toward 0.59 in March 2020. This pattern suggests relatively stable yet constrained liquid assets excluding inventories, with an improvement at the most recent period examined.
- Cash Ratio
- The cash ratio exhibits the most pronounced variability among the three liquidity ratios. For much of 2015, the ratio remains quite low around 0.03 to 0.04, indicating minimal cash or cash equivalents relative to current liabilities. A notable increase occurs in mid-2016, peaking at 0.21 before gradually declining through 2017 and 2018 and remaining below 0.1 for these years. However, a sharp rise to 0.27 at March 2020 marks a significant increase in the company's immediate liquidity, suggesting a more conservative cash management approach or responses to external economic conditions that necessitate higher cash reserves.
Current Ratio
Marriott International Inc., current ratio calculation (quarterly data)
| Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | ||||||||
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| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Current assets | ||||||||||||||||||||||||||||
| Current liabilities | ||||||||||||||||||||||||||||
| Liquidity Ratio | ||||||||||||||||||||||||||||
| Current ratio1 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Current Ratio, Competitors2 | ||||||||||||||||||||||||||||
| Airbnb Inc. | ||||||||||||||||||||||||||||
| Booking Holdings Inc. | ||||||||||||||||||||||||||||
| Chipotle Mexican Grill Inc. | ||||||||||||||||||||||||||||
| McDonald’s Corp. | ||||||||||||||||||||||||||||
| Starbucks Corp. | ||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31).
1 Q1 2020 Calculation
Current ratio = Current assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
The financial data shows variations in current assets and current liabilities from the first quarter of 2015 to the first quarter of 2020, with the current ratio reflecting these changes.
- Current Assets
- Current assets exhibit an overall increasing trend across the periods. Starting at 1,828 million US dollars at the end of the first quarter of 2015, the value fluctuated but generally increased, reaching 4,049 million US dollars by the first quarter of 2020. Notable growth was observed particularly between mid-2016 and early 2017, with a peak in September 2016 of 3,787 million US dollars, followed by smaller fluctuations towards the later periods.
- Current Liabilities
- Current liabilities also rose substantially over the analyzed period. Beginning at 3,030 million US dollars in the first quarter of 2015, there were substantial increases noted in 2016 and 2017, with values consistently above 5,000 million US dollars from September 2016 onwards. The highest levels occurred towards the late 2019 and early 2020 periods, crossing 6,500 million US dollars. Throughout the timeframe, liabilities consistently exceeded assets.
- Current Ratio
- The current ratio, calculated as current assets divided by current liabilities, remained below 1 across all periods, indicating liquidity pressure over the entire timeframe. Initially, the ratio was 0.60 in the first quarter of 2015, dropping to a low of 0.42 in the fourth quarter of 2018. A moderate recovery was visible towards the first quarter of 2020, with the current ratio improving to 0.62. The ratio's fluctuations correlate with changes in assets and liabilities, reflecting periods where liabilities grew faster than assets and vice versa.
Overall, the pattern suggests challenges in maintaining short-term liquidity given that current liabilities consistently surpassed current assets. Despite some improvements in current assets and the current ratio in early 2020, the ratio remained below 1, which may indicate a potential risk in meeting short-term obligations without additional financing or changes in working capital structure.
Quick Ratio
Marriott International Inc., quick ratio calculation (quarterly data)
| Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | ||||||||
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| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Cash and equivalents | ||||||||||||||||||||||||||||
| Accounts and notes receivable, net | ||||||||||||||||||||||||||||
| Total quick assets | ||||||||||||||||||||||||||||
| Current liabilities | ||||||||||||||||||||||||||||
| Liquidity Ratio | ||||||||||||||||||||||||||||
| Quick ratio1 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Quick Ratio, Competitors2 | ||||||||||||||||||||||||||||
| Airbnb Inc. | ||||||||||||||||||||||||||||
| Booking Holdings Inc. | ||||||||||||||||||||||||||||
| Chipotle Mexican Grill Inc. | ||||||||||||||||||||||||||||
| McDonald’s Corp. | ||||||||||||||||||||||||||||
| Starbucks Corp. | ||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31).
1 Q1 2020 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Total Quick Assets
- The total quick assets show a fluctuating trend over the observed periods. Initially, from March 2015 to December 2015, quick assets slightly declined from 1292 million USD to 1199 million USD. A significant increase occurred by June 2016, peaking at 2783 million USD in September 2016, before tapering off somewhat toward the end of 2016. Throughout 2017 and 2018, the values generally oscillated between approximately 2300 and 2800 million USD without a clear upward or downward trajectory. Moving into 2019, quick assets held steady around 2600 million USD, until the first quarter of 2020, which saw a marked increase to 3828 million USD, representing the highest level in the data series.
- Current Liabilities
- Current liabilities present a general upward trend from March 2015 to December 2019. Starting at 3030 million USD in the first quarter of 2015, liabilities rose with some variability, reaching a notable peak of 6677 million USD in the December 2019 quarter. Despite some fluctuations, the liabilities consistently hovered above 3200 million USD from June 2016 onward. The first quarter of 2020 reflects a slight decrease to 6516 million USD from the previous peak yet remains substantially higher than early period figures.
- Quick Ratio
- The quick ratio remained below 0.6 throughout the entire period, indicating that quick assets were consistently less than current liabilities. From March 2015 to December 2015, the ratio slightly decreased from 0.43 to 0.37, followed by an improvement reaching 0.56 in June 2016. A gradual decline ensued until December 2017, hitting a low around 0.40. The ratio stabilized somewhat through 2018 and 2019, fluctuating mainly between 0.38 and 0.47. Notably, in the first quarter of 2020, the quick ratio increased significantly to 0.59, reflecting improved liquidity conditions relative to earlier quarters.
- Overall Insights
- The data suggests a pattern of rising current liabilities over the examined period, coupled with somewhat volatile quick assets. The quick ratio’s general trend below one points to persistent liquidity pressures, although the sharp rise at the start of 2020 indicates a noteworthy strengthening of the company's short-term financial position. The marked increase in quick assets during early 2020 likely contributed to this liquidity improvement, potentially reflecting strategic asset management or changes in operational conditions just prior to or at the onset of the COVID-19 pandemic.
Cash Ratio
Marriott International Inc., cash ratio calculation (quarterly data)
| Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Cash and equivalents | ||||||||||||||||||||||||||||
| Total cash assets | ||||||||||||||||||||||||||||
| Current liabilities | ||||||||||||||||||||||||||||
| Liquidity Ratio | ||||||||||||||||||||||||||||
| Cash ratio1 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Cash Ratio, Competitors2 | ||||||||||||||||||||||||||||
| Airbnb Inc. | ||||||||||||||||||||||||||||
| Booking Holdings Inc. | ||||||||||||||||||||||||||||
| Chipotle Mexican Grill Inc. | ||||||||||||||||||||||||||||
| McDonald’s Corp. | ||||||||||||||||||||||||||||
| Starbucks Corp. | ||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31).
1 Q1 2020 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several pertinent trends concerning liquidity and short-term financial management.
- Total Cash Assets
- The total cash assets show significant volatility throughout the observed periods. Starting at 120 million USD in the first quarter of 2015, cash assets dipped to a low of 95 million USD by the third quarter of 2015 before increasing sharply to a peak of 1,078 million USD in the third quarter of 2016. Subsequently, there is a general declining trend in cash assets through 2017 and most of 2018, with values fluctuating but mostly decreasing, reaching a lower range around 258 to 276 million USD in early to late 2019. An outlier is observed in the first quarter of 2020, where cash assets surged dramatically to 1,760 million USD, indicating a significant cash inflow or liquidity event during this period.
- Current Liabilities
- Current liabilities show an upward trajectory over the years measured, starting at 3,030 million USD in the first quarter of 2015 and rising consistently to peak at 6,677 million USD in the fourth quarter of 2019. There is a slight decrease to 6,516 million USD in the first quarter of 2020, but the overall trend is an increase in current liabilities over the period, indicating growing short-term obligations.
- Cash Ratio
- The cash ratio, representing liquidity by measuring cash to current liabilities, demonstrates volatility corresponding with changes in the two aforementioned variables. Initially, the ratio remained very low (around 0.03 to 0.04) through most of 2015, indicating limited cash availability relative to current liabilities. A notable improvement occurred between the first and third quarters of 2016 when the cash ratio increased significantly to around 0.21, coinciding with the surge in cash assets. However, thereafter the ratio declined steadily from 0.17 down to approximately 0.03 by the end of 2019, reflecting increased liabilities and reduced cash reserves. The first quarter of 2020 shows an exceptional increase in the cash ratio to 0.27, reinforcing the observed cash asset spike and indicating an enhancement in liquidity position relative to current liabilities.
In summary, the data indicates a generally rising trend in current liabilities over the years, with cash assets remaining relatively low except for significant spikes in mid-2016 and early 2020. The cash ratio trends mirror these fluctuations, revealing important episodes of improved liquidity, especially notable in 2016 and early 2020. The sudden increase in cash assets and liquidity at the beginning of 2020 may suggest a strategic liquidity buildup possibly in response to anticipated market or operational conditions.