Analysis of Solvency Ratios
Quarterly Data
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Marriott International Inc., solvency 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).
- Debt to Equity
- Beginning from the first available data point at March 31, 2016, the debt to equity ratio exhibits a consistent upward trend. Initially recorded at 1.51, it gradually increases each quarter, reaching 15.56 by March 31, 2020. This significant rise reflects an increasing reliance on debt financing relative to equity over the period. The metric including operating lease liability shows a similar pattern but at slightly higher levels, reaching 16.82 by the last observation, indicating that lease obligations contribute notably to the overall leverage.
- Debt to Capital
- The debt to capital ratio starts at relatively low levels with a value of 2.7 as of March 31, 2015, fluctuating in the early quarters but stabilizing around the 0.6 to 0.7 range between late 2015 and 2016. From 2017 onward, a clear and steady increase is evident, climbing from 0.71 to a peak of 1.0 by March 31, 2020. The inclusion of operating lease liabilities adds marginal increases but follows the same trend, reinforcing the rise in total debt as a proportion of capital structure over time.
- Debt to Assets
- The debt to assets ratio shows moderate fluctuation between 0.59 and 0.7 in early 2015 through mid-2016, followed by a period of relative stabilization near the 0.35 to 0.39 range through 2017 and 2018. Starting in 2019, there is a noticeable upward movement, with the ratio increasing steadily and reaching 0.48 by March 31, 2020. When operating lease liabilities are considered, the ratio is slightly higher, peaking at 0.51. This suggests an increasing proportion of assets are financed by debt, particularly in the more recent periods.
- Financial Leverage
- Financial leverage data is available from the second half of 2016, revealing an escalating trend from 4.28 up to 35.63 by March 31, 2020. This substantial increase indicates the company has significantly increased its leverage, implying growing obligations and a potentially higher risk profile due to greater use of debt relative to equity.
- Interest Coverage
- The interest coverage ratio starts at 8.51 in late 2015 and experiences a general decline over the subsequent periods, with some fluctuations. It peaked at 11.38 in late 2017 but generally trends downward thereafter, reaching a low of 4.04 by March 31, 2020. This decrease suggests reduced ability to meet interest expenses from operating earnings, consistent with increasing leverage levels observed across the other metrics.
Overall, the data indicates a marked increase in leverage ratios from 2016 onwards, with growing debt relative to both equity and assets. The financial leverage ratio rising dramatically supports this observation, while the declining interest coverage ratio signals a potentially higher risk related to debt servicing capacity. The incorporation of operating lease liabilities slightly amplifies debt-related ratios, underlining the importance of lease obligations in the company’s capital structure.
Debt Ratios
Coverage Ratios
Debt to Equity
Marriott International Inc., debt to equity 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) | ||||||||||||||||||||||||||||
| Current portion of long-term debt | 1,664) | 977) | 227) | 229) | 231) | 833) | 617) | 616) | 988) | 398) | 398) | 402) | 309) | 309) | 316) | 303) | 300) | 300) | 615) | 614) | 325) | |||||||
| Long-term debt, excluding current portion | 10,569) | 9,963) | 10,552) | 10,185) | 10,025) | 8,514) | 8,710) | 8,375) | 7,858) | 7,840) | 8,271) | 7,911) | 8,161) | 8,197) | 8,506) | 4,057) | 3,859) | 3,807) | 3,689) | 3,303) | 3,703) | |||||||
| Total debt | 12,233) | 10,940) | 10,779) | 10,414) | 10,256) | 9,347) | 9,327) | 8,991) | 8,846) | 8,238) | 8,669) | 8,313) | 8,470) | 8,506) | 8,822) | 4,360) | 4,159) | 4,107) | 4,304) | 3,917) | 4,028) | |||||||
| Shareholders’ equity (deficit) | (20) | 703) | 838) | 1,240) | 1,603) | 2,225) | 2,324) | 2,841) | 3,566) | 3,731) | 4,512) | 4,901) | 5,168) | 5,357) | 5,841) | (3,462) | (3,667) | (3,590) | (3,589) | (3,033) | (2,537) | |||||||
| Solvency Ratio | ||||||||||||||||||||||||||||
| Debt to equity1 | — | 15.56 | 12.86 | 8.40 | 6.40 | 4.20 | 4.01 | 3.16 | 2.48 | 2.21 | 1.92 | 1.70 | 1.64 | 1.59 | 1.51 | — | — | — | — | — | — | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Debt to Equity, Competitors2 | ||||||||||||||||||||||||||||
| Airbnb Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Booking Holdings Inc. | 2.23 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Chipotle Mexican Grill Inc. | 0.00 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| 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
Debt to equity = Total debt ÷ Shareholders’ equity (deficit)
= 12,233 ÷ -20 = —
2 Click competitor name to see calculations.
- Total Debt
-
Total debt demonstrates an overall increasing trend from March 2015 through March 2020. It began at approximately $4.03 billion and showed a gradual rise with some notable jumps, particularly between June 2016 and June 2017, where the value increased from $4.36 billion to over $8.67 billion. From that point onward, the debt remained elevated, steadily climbing to reach $12.23 billion by March 2020. This indicates a significant increase in borrowing over the analyzed period.
- Shareholders’ Equity
-
Shareholders' equity started as a negative figure, indicating a deficit exceeding $2.5 billion in early 2015. The deficit worsened slightly until June 2016 but then turned positive sharply in September 2016 to $5.841 billion, suggesting a major restructuring or capital infusion. Thereafter, equity gradually declined again, falling from $5.84 billion in late 2016 to just below zero (-$20 million) by March 2020. The downward trajectory of equity after the initial positive shift highlights a weakening in net asset value relative to liabilities over recent years.
- Debt to Equity Ratio
-
Debt to equity ratio data is available starting in September 2016, starting at 1.51 and showing a consistent increase thereafter. The ratio rose progressively from 1.51 to 15.56 by December 2019. This dramatic escalation reflects increasing indebtedness relative to shareholders’ equity, exacerbated by the falling equity values. The trend indicates a growing financial leverage and potentially higher risk exposure, with the ratio peaking near 16 before the last data point.
- Overall Insights
-
The financial data portrays a company increasingly reliant on debt financing while experiencing a decline in net equity. The initial reversal from deficit to positive equity in 2016 could be attributable to a significant transaction or recapitalization. However, the subsequent erosion of equity combined with rising debt levels and debt to equity ratios suggests increased financial leverage and potential stress on the capital structure by early 2020. These trends indicate caution as the firm’s financial risk and liability burdens have intensified substantially within the analyzed timeframe.
Debt to Equity (including Operating Lease Liability)
Marriott International Inc., debt to equity (including operating lease liability) calculation (quarterly data)
| Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Current portion of long-term debt | 1,664) | 977) | 227) | 229) | 231) | 833) | 617) | 616) | 988) | 398) | 398) | 402) | 309) | 309) | 316) | 303) | 300) | 300) | 615) | 614) | 325) | |||||||
| Long-term debt, excluding current portion | 10,569) | 9,963) | 10,552) | 10,185) | 10,025) | 8,514) | 8,710) | 8,375) | 7,858) | 7,840) | 8,271) | 7,911) | 8,161) | 8,197) | 8,506) | 4,057) | 3,859) | 3,807) | 3,689) | 3,303) | 3,703) | |||||||
| Total debt | 12,233) | 10,940) | 10,779) | 10,414) | 10,256) | 9,347) | 9,327) | 8,991) | 8,846) | 8,238) | 8,669) | 8,313) | 8,470) | 8,506) | 8,822) | 4,360) | 4,159) | 4,107) | 4,304) | 3,917) | 4,028) | |||||||
| Noncurrent operating lease liabilities | 846) | 882) | 868) | 893) | 889) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | |||||||
| Total debt (including operating lease liability) | 13,079) | 11,822) | 11,647) | 11,307) | 11,145) | 9,347) | 9,327) | 8,991) | 8,846) | 8,238) | 8,669) | 8,313) | 8,470) | 8,506) | 8,822) | 4,360) | 4,159) | 4,107) | 4,304) | 3,917) | 4,028) | |||||||
| Shareholders’ equity (deficit) | (20) | 703) | 838) | 1,240) | 1,603) | 2,225) | 2,324) | 2,841) | 3,566) | 3,731) | 4,512) | 4,901) | 5,168) | 5,357) | 5,841) | (3,462) | (3,667) | (3,590) | (3,589) | (3,033) | (2,537) | |||||||
| Solvency Ratio | ||||||||||||||||||||||||||||
| Debt to equity (including operating lease liability)1 | — | 16.82 | 13.90 | 9.12 | 6.95 | 4.20 | 4.01 | 3.16 | 2.48 | 2.21 | 1.92 | 1.70 | 1.64 | 1.59 | 1.51 | — | — | — | — | — | — | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | ||||||||||||||||||||||||||||
| Booking Holdings Inc. | 2.35 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Chipotle Mexican Grill Inc. | 1.76 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| 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
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Shareholders’ equity (deficit)
= 13,079 ÷ -20 = —
2 Click competitor name to see calculations.
The analysis of the quarterly financial data over the examined periods reveals notable trends in the company's debt level, shareholders' equity, and leverage ratio.
- Total Debt (Including Operating Lease Liability)
- The total debt exhibited a gradual increase from March 31, 2015, (approximately $4,028 million) through June 30, 2016, reaching about $4,360 million. Thereafter, a significant jump occurred in the third quarter of 2016, with total debt nearly doubling to $8,822 million. Following this spike, debt levels remained relatively stable with slight fluctuations around the $8,000 to $9,300 million range until early 2019. From March 31, 2019, there was a pronounced upward trend, with debt rising steadily and reaching $13,079 million by March 31, 2020.
- Shareholders' Equity (Deficit)
- Shareholders' equity started in negative territory at -$2,537 million as of March 31, 2015, and showed a continuous decline reaching a low near -$3,667 million by March 31, 2016. In the third quarter of 2016, equity shifted dramatically to a positive value of approximately $5,841 million, indicating a substantial change in equity structure. Following this reversal, equity gradually declined again quarter-over-quarter, falling from around $5,000 million in late 2016 to just below zero at -$20 million by March 31, 2020.
- Debt to Equity Ratio (Including Operating Lease Liability)
- The debt to equity ratio was not available for the initial periods but started to be reported from the third quarter of 2016. At that point, the ratio was 1.51 and showed an overall rising trajectory through subsequent quarters. The metric increased steadily from 1.51 to 4.01 by the end of 2018, then accelerated more sharply, reaching 9.12 in mid-2019, and further escalating to 16.82 by the end of 2019. This rapid increase in the debt to equity ratio reflects the growing leverage and deteriorating equity base over time, culminating in a significantly higher risk profile as of the last reported period.
In summary, the data indicates increasing reliance on debt financing, as evidenced by the steady rise in total debt and the escalating debt to equity ratio. The positive shift in shareholders’ equity in late 2016 suggests a one-time structural change but was followed by a consistent decline, leading to near-zero or negative equity by early 2020. The marked increase in leverage ratios during the latter periods points to a potential amplification of financial risk.
Debt to Capital
Marriott International Inc., debt to capital calculation (quarterly data)
| Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Current portion of long-term debt | 1,664) | 977) | 227) | 229) | 231) | 833) | 617) | 616) | 988) | 398) | 398) | 402) | 309) | 309) | 316) | 303) | 300) | 300) | 615) | 614) | 325) | |||||||
| Long-term debt, excluding current portion | 10,569) | 9,963) | 10,552) | 10,185) | 10,025) | 8,514) | 8,710) | 8,375) | 7,858) | 7,840) | 8,271) | 7,911) | 8,161) | 8,197) | 8,506) | 4,057) | 3,859) | 3,807) | 3,689) | 3,303) | 3,703) | |||||||
| Total debt | 12,233) | 10,940) | 10,779) | 10,414) | 10,256) | 9,347) | 9,327) | 8,991) | 8,846) | 8,238) | 8,669) | 8,313) | 8,470) | 8,506) | 8,822) | 4,360) | 4,159) | 4,107) | 4,304) | 3,917) | 4,028) | |||||||
| Shareholders’ equity (deficit) | (20) | 703) | 838) | 1,240) | 1,603) | 2,225) | 2,324) | 2,841) | 3,566) | 3,731) | 4,512) | 4,901) | 5,168) | 5,357) | 5,841) | (3,462) | (3,667) | (3,590) | (3,589) | (3,033) | (2,537) | |||||||
| Total capital | 12,213) | 11,643) | 11,617) | 11,654) | 11,859) | 11,572) | 11,651) | 11,832) | 12,412) | 11,969) | 13,181) | 13,214) | 13,638) | 13,863) | 14,663) | 898) | 492) | 517) | 715) | 884) | 1,491) | |||||||
| Solvency Ratio | ||||||||||||||||||||||||||||
| Debt to capital1 | 1.00 | 0.94 | 0.93 | 0.89 | 0.86 | 0.81 | 0.80 | 0.76 | 0.71 | 0.69 | 0.66 | 0.63 | 0.62 | 0.61 | 0.60 | 4.86 | 8.45 | 7.94 | 6.02 | 4.43 | 2.70 | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Debt to Capital, Competitors2 | ||||||||||||||||||||||||||||
| Airbnb Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Booking Holdings Inc. | 0.69 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Chipotle Mexican Grill Inc. | 0.00 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| McDonald’s Corp. | 1.31 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Starbucks Corp. | 2.38 | 2.26 | 1.63 | 2.21 | 1.46 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
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
Debt to capital = Total debt ÷ Total capital
= 12,233 ÷ 12,213 = 1.00
2 Click competitor name to see calculations.
The data reveals significant fluctuations and trends in the financial leverage of the company over the 2015 to early 2020 period. The analysis focuses on total debt, total capital, and the debt to capital ratio to understand changes in the company’s capital structure.
- Total Debt
- Total debt shows an overall increasing trajectory from March 2015 through March 2020. Initial values around $4 billion rise steadily, with noticeable spikes in the second half of 2016 reaching values exceeding $8 billion. After this period, total debt fluctuates moderately but remains on an upward trend, culminating in a peak above $12 billion by the first quarter of 2020.
- Total Capital
- Total capital exhibits more volatility and a contrasting trend compared to total debt. Early data show low capital levels below $1.5 billion during 2015 and early 2016, followed by a sharp increase in mid-2016 reaching above $14 billion. However, from that peak, total capital declines steadily and stabilizes around $11.5 to $12 billion range through late 2016 to early 2020. Despite minor fluctuations, total capital does not follow the same upward momentum as total debt in the latter years.
- Debt to Capital Ratio
- The debt to capital ratio demonstrates significant variation, with extremely high values (above 2.5 and up to nearly 8) from early 2015 until mid-2016, indicating a heavy reliance on debt relative to capital during this period. Starting in the third quarter of 2016, there is a pronounced decrease in this ratio to values below 1, signifying a reduction in leverage or an increase in capital base. From late 2016 onward, the ratio gradually increases from around 0.6 to 1 by the first quarter of 2020, reflecting a steady rise in debt relative to capital over these years.
In summary, the company’s financial leverage experienced two distinct phases: an initial phase of very high debt to capital ratios driven by relatively low total capital and growing debt, followed by a phase starting in late 2016 where capital levels increased sharply and leverage ratios dropped significantly. After this shift, leverage ratios began creeping upward again towards the end of the period as debt continued to grow and capital slightly declined or stabilized. The trends indicate changing strategies or market conditions influencing the company’s capital structure, with a return to higher leverage levels approaching early 2020.
Debt to Capital (including Operating Lease Liability)
Marriott International Inc., debt to capital (including operating lease liability) 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) | ||||||||||||||||||||||||||||
| Current portion of long-term debt | 1,664) | 977) | 227) | 229) | 231) | 833) | 617) | 616) | 988) | 398) | 398) | 402) | 309) | 309) | 316) | 303) | 300) | 300) | 615) | 614) | 325) | |||||||
| Long-term debt, excluding current portion | 10,569) | 9,963) | 10,552) | 10,185) | 10,025) | 8,514) | 8,710) | 8,375) | 7,858) | 7,840) | 8,271) | 7,911) | 8,161) | 8,197) | 8,506) | 4,057) | 3,859) | 3,807) | 3,689) | 3,303) | 3,703) | |||||||
| Total debt | 12,233) | 10,940) | 10,779) | 10,414) | 10,256) | 9,347) | 9,327) | 8,991) | 8,846) | 8,238) | 8,669) | 8,313) | 8,470) | 8,506) | 8,822) | 4,360) | 4,159) | 4,107) | 4,304) | 3,917) | 4,028) | |||||||
| Noncurrent operating lease liabilities | 846) | 882) | 868) | 893) | 889) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | |||||||
| Total debt (including operating lease liability) | 13,079) | 11,822) | 11,647) | 11,307) | 11,145) | 9,347) | 9,327) | 8,991) | 8,846) | 8,238) | 8,669) | 8,313) | 8,470) | 8,506) | 8,822) | 4,360) | 4,159) | 4,107) | 4,304) | 3,917) | 4,028) | |||||||
| Shareholders’ equity (deficit) | (20) | 703) | 838) | 1,240) | 1,603) | 2,225) | 2,324) | 2,841) | 3,566) | 3,731) | 4,512) | 4,901) | 5,168) | 5,357) | 5,841) | (3,462) | (3,667) | (3,590) | (3,589) | (3,033) | (2,537) | |||||||
| Total capital (including operating lease liability) | 13,059) | 12,525) | 12,485) | 12,547) | 12,748) | 11,572) | 11,651) | 11,832) | 12,412) | 11,969) | 13,181) | 13,214) | 13,638) | 13,863) | 14,663) | 898) | 492) | 517) | 715) | 884) | 1,491) | |||||||
| Solvency Ratio | ||||||||||||||||||||||||||||
| Debt to capital (including operating lease liability)1 | 1.00 | 0.94 | 0.93 | 0.90 | 0.87 | 0.81 | 0.80 | 0.76 | 0.71 | 0.69 | 0.66 | 0.63 | 0.62 | 0.61 | 0.60 | 4.86 | 8.45 | 7.94 | 6.02 | 4.43 | 2.70 | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | ||||||||||||||||||||||||||||
| Booking Holdings Inc. | 0.70 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Chipotle Mexican Grill Inc. | 0.64 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Starbucks Corp. | 1.49 | 2.26 | 1.63 | 2.21 | 1.46 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
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
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 13,079 ÷ 13,059 = 1.00
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several important trends concerning the company's debt levels and capital structure over the observed periods.
- Total Debt (including operating lease liability)
- The total debt demonstrates an overall increasing trend from March 31, 2015, to March 31, 2020. Starting at $4,028 million, the debt fluctuates initially but shows a marked increase especially from mid-2016 onwards. Notably, there is a significant jump between June 30, 2016, and September 30, 2016, where the debt almost doubles from $4,360 million to $8,822 million. Following that, fluctuations continue with minor decreases and rises, reaching a peak of $13,079 million by March 31, 2020. This indicates an aggressive increase in borrowing or financial obligations over the five-year span.
- Total Capital (including operating lease liability)
- Total capital starts at a relatively low base of $1,491 million in March 2015 with further reductions until the end of 2015, reaching as low as $492 million by March 2016. An extraordinary increase occurs between June 2016 ($898 million) and September 2016 ($14,663 million), which aligns with the surge in total debt during the same period. After this sharp rise, total capital remains relatively stable with modest decreases and subsequent stability ranging around $11,500 million to $12,700 million towards the latest quarters. This suggests a significant recapitalization or asset revaluation event in late 2016 followed by a steady capital base.
- Debt to Capital Ratio (including operating lease liability)
- The debt to capital ratio exhibits high volatility early in the timeline, initially escalating from 2.7 in March 2015 to an extremely elevated 8.45 in March 2016, reflecting a highly leveraged capital structure with debt far exceeding capital. Subsequently, this ratio dramatically drops to a low of about 0.6 in the third quarter of 2016, consistent with the capital jump observed earlier. Following the dip, the ratio gradually increases over the period, from around 0.6 in late 2016 to a balanced level of 1.0 by March 2020. This ascending trend implies a steady increase in the proportion of debt relative to total capital, culminating in an equal weighting of debt and capital by the end of the period.
Overall, the data reflects a company undergoing a significant transformation in its financial structure around mid-2016, with a sharp increase in both debt and capital. Post this event, the company manages a considerably larger capital base but continues to increase its leverage gradually, ending with total debt equal to total capital. The rising debt to capital ratio towards the end of the period may warrant further assessment of financial risk and capital management strategies going forward.
Debt to Assets
Marriott International Inc., debt to assets calculation (quarterly data)
| Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Current portion of long-term debt | 1,664) | 977) | 227) | 229) | 231) | 833) | 617) | 616) | 988) | 398) | 398) | 402) | 309) | 309) | 316) | 303) | 300) | 300) | 615) | 614) | 325) | |||||||
| Long-term debt, excluding current portion | 10,569) | 9,963) | 10,552) | 10,185) | 10,025) | 8,514) | 8,710) | 8,375) | 7,858) | 7,840) | 8,271) | 7,911) | 8,161) | 8,197) | 8,506) | 4,057) | 3,859) | 3,807) | 3,689) | 3,303) | 3,703) | |||||||
| Total debt | 12,233) | 10,940) | 10,779) | 10,414) | 10,256) | 9,347) | 9,327) | 8,991) | 8,846) | 8,238) | 8,669) | 8,313) | 8,470) | 8,506) | 8,822) | 4,360) | 4,159) | 4,107) | 4,304) | 3,917) | 4,028) | |||||||
| Total assets | 25,549) | 25,051) | 24,812) | 24,893) | 24,746) | 23,696) | 23,833) | 23,844) | 24,484) | 23,948) | 24,236) | 23,881) | 23,925) | 24,140) | 25,002) | 6,650) | 6,121) | 6,082) | 6,153) | 6,321) | 6,803) | |||||||
| Solvency Ratio | ||||||||||||||||||||||||||||
| Debt to assets1 | 0.48 | 0.44 | 0.43 | 0.42 | 0.41 | 0.39 | 0.39 | 0.38 | 0.36 | 0.34 | 0.36 | 0.35 | 0.35 | 0.35 | 0.35 | 0.66 | 0.68 | 0.68 | 0.70 | 0.62 | 0.59 | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Debt to Assets, Competitors2 | ||||||||||||||||||||||||||||
| Airbnb Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Booking Holdings Inc. | 0.48 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Chipotle Mexican Grill Inc. | 0.00 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| McDonald’s Corp. | 0.77 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Starbucks Corp. | 0.42 | 0.58 | 0.53 | 0.52 | 0.46 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
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
Debt to assets = Total debt ÷ Total assets
= 12,233 ÷ 25,549 = 0.48
2 Click competitor name to see calculations.
The company's total debt and total assets exhibit notable fluctuations over the observed quarterly periods. Initially, total debt displayed moderate variability, remaining at levels slightly above 4,000 million US dollars through early 2016. A significant increase is evident starting in the third quarter of 2016, when total debt more than doubled, reaching over 8,800 million US dollars. This elevated debt level sustained through the subsequent quarters with a steady upward trajectory, culminating in approximately 12,233 million US dollars by the first quarter of 2020.
Total assets followed a distinct pattern compared to total debt. From early 2015 through mid-2016, total assets fluctuated around 6,000 to 6,650 million US dollars. Corresponding with the spike in total debt in late 2016, total assets also surged dramatically to approximately 25,000 million US dollars and remained relatively stable in the range of 23,800 to 25,500 million US dollars throughout the following periods. This indicates a substantial growth in asset base coinciding with the debt increase.
The debt to assets ratio reveals important insights into the company's leverage position over time. In the early periods (2015 to mid-2016), the ratio was relatively high, fluctuating between 0.59 and 0.70, indicating that debt comprised a significant portion of the asset base. With the marked increase in total assets in late 2016, the debt to assets ratio consequently dropped sharply to approximately 0.35, reflecting a decrease in leverage relative to the expanded assets.
From late 2016 onwards, the debt to assets ratio exhibited a gradual upward trend, rising from 0.34 at the end of 2017 to 0.48 by early 2020. This suggests a steady increase in leverage over this period, corresponding with consistent increases in total debt while total assets remained largely stable. The increase in leverage towards 2020 may imply a strategic shift towards greater debt financing or indicate potential concerns related to financial risk.
Overall, the data suggests that the company experienced a significant expansion phase around late 2016, marked by a large increase in assets and debt. Subsequently, the company maintained an elevated asset base while progressively increasing debt, resulting in moderate growth in leverage. These trends warrant continuous monitoring of the company's debt management and asset utilization strategies to assess financial stability and risk exposure.
Debt to Assets (including Operating Lease Liability)
Marriott International Inc., debt to assets (including operating lease liability) 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) | ||||||||||||||||||||||||||||
| Current portion of long-term debt | 1,664) | 977) | 227) | 229) | 231) | 833) | 617) | 616) | 988) | 398) | 398) | 402) | 309) | 309) | 316) | 303) | 300) | 300) | 615) | 614) | 325) | |||||||
| Long-term debt, excluding current portion | 10,569) | 9,963) | 10,552) | 10,185) | 10,025) | 8,514) | 8,710) | 8,375) | 7,858) | 7,840) | 8,271) | 7,911) | 8,161) | 8,197) | 8,506) | 4,057) | 3,859) | 3,807) | 3,689) | 3,303) | 3,703) | |||||||
| Total debt | 12,233) | 10,940) | 10,779) | 10,414) | 10,256) | 9,347) | 9,327) | 8,991) | 8,846) | 8,238) | 8,669) | 8,313) | 8,470) | 8,506) | 8,822) | 4,360) | 4,159) | 4,107) | 4,304) | 3,917) | 4,028) | |||||||
| Noncurrent operating lease liabilities | 846) | 882) | 868) | 893) | 889) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | |||||||
| Total debt (including operating lease liability) | 13,079) | 11,822) | 11,647) | 11,307) | 11,145) | 9,347) | 9,327) | 8,991) | 8,846) | 8,238) | 8,669) | 8,313) | 8,470) | 8,506) | 8,822) | 4,360) | 4,159) | 4,107) | 4,304) | 3,917) | 4,028) | |||||||
| Total assets | 25,549) | 25,051) | 24,812) | 24,893) | 24,746) | 23,696) | 23,833) | 23,844) | 24,484) | 23,948) | 24,236) | 23,881) | 23,925) | 24,140) | 25,002) | 6,650) | 6,121) | 6,082) | 6,153) | 6,321) | 6,803) | |||||||
| Solvency Ratio | ||||||||||||||||||||||||||||
| Debt to assets (including operating lease liability)1 | 0.51 | 0.47 | 0.47 | 0.45 | 0.45 | 0.39 | 0.39 | 0.38 | 0.36 | 0.34 | 0.36 | 0.35 | 0.35 | 0.35 | 0.35 | 0.66 | 0.68 | 0.68 | 0.70 | 0.62 | 0.59 | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | ||||||||||||||||||||||||||||
| Booking Holdings Inc. | 0.50 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Chipotle Mexican Grill Inc. | 0.57 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Starbucks Corp. | 0.74 | 0.58 | 0.53 | 0.52 | 0.46 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
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
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 13,079 ÷ 25,549 = 0.51
2 Click competitor name to see calculations.
The data indicates notable fluctuations in the company's financial leverage and asset base over the observed periods.
- Total Debt (Including Operating Lease Liability)
- The total debt value exhibits an overall increasing trend from March 2015 to March 2020. Initially, the debt increased moderately from $4,028 million in Q1 2015 to $4,360 million in Q2 2016. A significant surge is observed in Q3 2016, where debt more than doubled to $8,822 million, maintaining a relatively high level with slight variations thereafter. From Q1 2017 through Q4 2018, debt figures fluctuate between approximately $8,200 million and $9,300 million. Subsequently, debt steadily rises again, reaching $13,079 million by Q1 2020, indicating an increase in financial obligations towards the end of the period.
- Total Assets
- Total assets show considerable variation, particularly around mid-2016. The asset base remains relatively stable and modest, between $6,000 million and $6,800 million from Q1 2015 through Q2 2016. However, a sharp increase occurs in Q3 2016, with assets jumping to approximately $25,002 million and maintaining values near $24,000 million to $25,000 million throughout subsequent quarters. This suggests a substantial acquisition, revaluation, or recognition of additional assets during that time, followed by consistent asset levels up to Q1 2020, where a slight upward trend is visible, ending at $25,549 million.
- Debt to Assets Ratio (Including Operating Lease Liability)
- The leverage ratio reflects dynamic changes over the time frame. It begins relatively high, fluctuating between 0.59 and 0.70 from early 2015 through mid-2016, indicating a higher proportion of debt relative to assets. Following the asset base increase in Q3 2016, the ratio drops substantially to around 0.34-0.39 during 2016 to the end of 2018, signifying better capital structure balance with lower relative debt. However, from 2019 onward, the ratio increases steadily, reaching 0.51 by Q1 2020. This rise denotes increasing leverage and suggests that debt levels have grown faster than assets during this period.
In summary, the data reveals an initial period of moderate debt and asset base, followed by a major increase in asset value in mid-2016, which temporarily lowered the debt to assets ratio. Subsequent years showed a gradual increase in debt outpacing asset growth, contributing to rising leverage by early 2020. These patterns may warrant further investigation to understand the underlying factors driving the asset increase and later debt accumulation, as well as potential impacts on the company's financial stability and risk profile.
Financial Leverage
Marriott International Inc., financial leverage calculation (quarterly data)
| Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Total assets | 25,549) | 25,051) | 24,812) | 24,893) | 24,746) | 23,696) | 23,833) | 23,844) | 24,484) | 23,948) | 24,236) | 23,881) | 23,925) | 24,140) | 25,002) | 6,650) | 6,121) | 6,082) | 6,153) | 6,321) | 6,803) | |||||||
| Shareholders’ equity (deficit) | (20) | 703) | 838) | 1,240) | 1,603) | 2,225) | 2,324) | 2,841) | 3,566) | 3,731) | 4,512) | 4,901) | 5,168) | 5,357) | 5,841) | (3,462) | (3,667) | (3,590) | (3,589) | (3,033) | (2,537) | |||||||
| Solvency Ratio | ||||||||||||||||||||||||||||
| Financial leverage1 | — | 35.63 | 29.61 | 20.08 | 15.44 | 10.65 | 10.26 | 8.39 | 6.87 | 6.42 | 5.37 | 4.87 | 4.63 | 4.51 | 4.28 | — | — | — | — | — | — | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Financial Leverage, Competitors2 | ||||||||||||||||||||||||||||
| Airbnb Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Booking Holdings Inc. | 4.66 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Chipotle Mexican Grill Inc. | 3.11 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| 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
Financial leverage = Total assets ÷ Shareholders’ equity (deficit)
= 25,549 ÷ -20 = —
2 Click competitor name to see calculations.
- Total Assets
- The total assets display considerable variability over the observed quarters. Beginning at 6,803 million USD in March 2015, assets modestly declined through 2015, reaching a low around 6,082 million USD by December 2015. A significant upward shift is evident in mid-2016, surging to over 25,000 million USD by September 2016. Subsequently, total assets stabilized around the 24,000 to 25,000 million USD range from late 2016 through the first quarter of 2020, demonstrating overall asset base growth compared to the initial period despite fluctuations in between.
- Shareholders’ Equity (Deficit)
- Shareholders’ equity began in a deficit position at -2,537 million USD in March 2015 and progressively worsened, reaching a negative peak near -3,590 million USD by the end of 2015. A marked improvement occurs mid-2016, coinciding with the asset increase, shifting to a positive equity position of approximately 5,841 million USD by September 2016. However, this positive trend reverses gradually over the subsequent quarters, dropping back toward a deficit nearing -20 million USD by March 2020, indicating deteriorating equity despite the relatively stable asset base in the latter years.
- Financial Leverage
- The financial leverage ratio was initially unreported but became available from the third quarter of 2016, starting at 4.28. This metric shows a clear upward trajectory, increasing consistently each quarter and reaching an exceptionally high ratio of 35.63 by the last reported period in March 2020. Such escalating leverage indicates increasing reliance on debt or liabilities relative to equity, highlighting a notable rise in financial risk over time.
- Overall Observations
- The data reveals a period of significant structural change around mid-2016 marked by large asset growth and a shift from negative to positive equity, suggesting possible corporate actions such as acquisitions or restructuring. Post-2016, while total assets remain relatively constant, a decline in shareholders’ equity and a steep increase in financial leverage points to growing financial risk and weakening capital structure. This pattern signals heightened vulnerability in the company’s equity buffer against its liabilities during the latter periods analyzed.
Interest Coverage
Marriott International Inc., interest coverage 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) | ||||||||||||||||||||||||||||
| Net income | 31) | 279) | 387) | 232) | 375) | 317) | 503) | 667) | 420) | 201) | 392) | 414) | 365) | 244) | 70) | 247) | 219) | 202) | 210) | 240) | 207) | |||||||
| Add: Income tax expense | (12) | 47) | 140) | 82) | 57) | 28) | 91) | 207) | 112) | 978) | 188) | 178) | 120) | 139) | 61) | 97) | 107) | 82) | 99) | 115) | 100) | |||||||
| Add: Interest expense | 93) | 95) | 100) | 102) | 97) | 94) | 86) | 85) | 75) | 72) | 73) | 73) | 70) | 75) | 55) | 57) | 47) | 46) | 43) | 42) | 36) | |||||||
| Earnings before interest and tax (EBIT) | 112) | 421) | 627) | 416) | 529) | 439) | 680) | 959) | 607) | 1,251) | 653) | 665) | 555) | 458) | 186) | 401) | 373) | 330) | 352) | 397) | 343) | |||||||
| Solvency Ratio | ||||||||||||||||||||||||||||
| Interest coverage1 | 4.04 | 5.06 | 5.12 | 5.45 | 7.20 | 7.90 | 11.00 | 11.38 | 10.84 | 10.85 | 8.01 | 6.83 | 6.23 | 6.06 | 6.29 | 7.54 | 8.16 | 8.51 | — | — | — | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Interest Coverage, Competitors2 | ||||||||||||||||||||||||||||
| Booking Holdings Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| McDonald’s Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Starbucks Corp. | 14.35 | 14.49 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
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
Interest coverage
= (EBITQ1 2020
+ EBITQ4 2019
+ EBITQ3 2019
+ EBITQ2 2019)
÷ (Interest expenseQ1 2020
+ Interest expenseQ4 2019
+ Interest expenseQ3 2019
+ Interest expenseQ2 2019)
= (112 + 421 + 627 + 416)
÷ (93 + 95 + 100 + 102)
= 4.04
2 Click competitor name to see calculations.
- Earnings before interest and tax (EBIT)
- The EBIT values exhibit fluctuations throughout the observed periods. Starting at 343 million USD in March 2015, there is a general upward movement reaching a peak of 1251 million USD in December 2017. However, subsequent quarters show volatility with alternating increases and declines. Notably, a sharp rise occurs in December 2017, followed by a decline and another increase in mid-2018. In early 2020, EBIT notably decreases to 112 million USD, indicating a significant downturn.
- Interest expense
- Interest expenses demonstrate a steady upward trend over the entire timeframe. Beginning at 36 million USD in March 2015, expenses rise almost continuously to reach a maximum of 102 million USD in June 2019. After this peak, a slight decline is observed during the last quarter observed, ending at 93 million USD in March 2020.
- Interest coverage ratio
- The interest coverage ratio, available from September 2015 onward, generally shows a declining trend over the years. Initially, the ratio is relatively high, around 8.51 in September 2015, increasing to peaks exceeding 11 during 2017 and early 2018. However, from 2018 forward, the coverage ratio steadily decreases, falling below 5 by March 2020. This reduction indicates a weakening ability to cover interest expenses with EBIT as time progresses.