Analysis of Long-term (Investment) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
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- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Profitability Ratios
- Common Stock Valuation Ratios
- Enterprise Value to FCFF (EV/FCFF)
- Price to FCFE (P/FCFE)
- Capital Asset Pricing Model (CAPM)
- Net Profit Margin since 2005
- Operating Profit Margin since 2005
- Return on Assets (ROA) since 2005
- Price to Operating Profit (P/OP) since 2005
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Long-term Activity Ratios (Summary)
Marriott International Inc., long-term (investment) activity ratios
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Net fixed asset turnover | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset) | ||||||
| Total asset turnover | ||||||
| Equity turnover |
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).
The annual financial data reveal notable fluctuations and trends in asset utilization and turnover ratios over the analyzed period.
- Net Fixed Asset Turnover
- This ratio exhibited a significant decline from 14.08 in 2015 to 7.31 in 2016, followed by a recovery in subsequent years, reaching 12.77 in 2017 and slightly declining thereafter to 11.01 by 2019. This pattern suggests an initial drop in the efficiency of using fixed assets to generate sales, with gradual improvement and stabilization in later years.
- Net Fixed Asset Turnover Including Operating Lease, Right-of-Use Asset
- The trend mirrors the traditional net fixed asset turnover through 2018 but shows a sharp decline in 2019 to 7.51 from 10.61 in 2018. This drop likely reflects the impact of incorporating operating leases and right-of-use assets, indicating decreased turnover efficiency when lease assets are considered.
- Total Asset Turnover
- The total asset turnover ratio decreased markedly from 2.38 in 2015 to 0.71 in 2016 and remained relatively low throughout the subsequent years, gently declining to 0.84 by 2019. This indicates a significant reduction in overall asset efficiency to generate revenue over the period with minimal recovery.
- Equity Turnover
- Equity turnover data is missing for 2015, but from 2016 onwards it demonstrates a sharp improvement, increasing from 3.19 in 2016 to 29.83 in 2019. This substantial increase suggests an accelerated use of equity capital to generate sales, pointing to enhanced equity efficiency or changes in equity structure and sales growth dynamics.
Net Fixed Asset Turnover
Marriott International Inc., net fixed asset turnover 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) | ||||||
| Revenues | ||||||
| Property and equipment, net | ||||||
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover1 | ||||||
| Benchmarks | ||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||
| Airbnb Inc. | ||||||
| Booking Holdings Inc. | ||||||
| Chipotle Mexican Grill Inc. | ||||||
| DoorDash, Inc. | ||||||
| McDonald’s Corp. | ||||||
| Starbucks Corp. | ||||||
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
Net fixed asset turnover = Revenues ÷ Property and equipment, net
= ÷ =
2 Click competitor name to see calculations.
- Revenues
- The revenues exhibited a general upward trend from 2015 through 2019, increasing from $14,486 million in 2015 to a peak of $22,894 million in 2017. However, there was a decline in 2018 to $20,758 million, followed by a slight increase to $20,972 million in 2019. This pattern indicates strong growth initially, with a subsequent stabilization around the low $20 billion range.
- Property and equipment, net
- The net value of property and equipment showed notable fluctuations over the period. It more than doubled from $1,029 million in 2015 to $2,335 million in 2016. Subsequently, it decreased to $1,793 million in 2017, before rising slightly in the following years to $1,956 million in 2018 and then marginally declining again to $1,904 million in 2019. This irregular pattern suggests significant asset transactions or revaluations during the period.
- Net fixed asset turnover
- The net fixed asset turnover ratio declined sharply from 14.08 in 2015 to 7.31 in 2016, indicating a reduction in the efficiency with which the company generated revenues from its fixed assets during that year. Following this drop, the ratio improved to 12.77 in 2017, then slightly decreased to 10.61 in 2018 and modestly increased again to 11.01 in 2019. Despite the initial sharp decline, the ratio remained relatively stable in the later years, suggesting a recovery in asset utilization efficiency after 2016.
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
Marriott International Inc., net fixed asset turnover (including operating lease, right-of-use asset) calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenues | ||||||
| Property and equipment, net | ||||||
| Operating lease assets | ||||||
| Property and equipment, net (including operating lease, right-of-use asset) | ||||||
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | ||||||
| Benchmarks | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | ||||||
| Airbnb Inc. | ||||||
| Booking Holdings Inc. | ||||||
| Chipotle Mexican Grill Inc. | ||||||
| DoorDash, Inc. | ||||||
| McDonald’s Corp. | ||||||
| Starbucks Corp. | ||||||
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
Net fixed asset turnover (including operating lease, right-of-use asset) = Revenues ÷ Property and equipment, net (including operating lease, right-of-use asset)
= ÷ =
2 Click competitor name to see calculations.
- Revenues
- The revenues displayed a generally positive trend from 2015 to 2017, with a marked increase from 14,486 million US dollars in 2015 to 22,894 million US dollars in 2017. However, after this peak, revenues declined to 20,758 million US dollars in 2018 and then showed a slight recovery in 2019 to 20,972 million US dollars. Overall, the data suggests strong growth in the initial period followed by stabilization and minor recovery towards the end.
- Property and Equipment, Net
- This asset category showed considerable fluctuation. Starting from 1,029 million US dollars in 2015, it more than doubled in 2016 to 2,335 million US dollars, subsequently decreased to 1,793 million US dollars in 2017, and then increased steadily in 2018 and 2019, reaching 2,792 million US dollars by the end of the period. The overall pattern suggests significant capital expenditure and/or revaluation activities with a notable upswing in the last year analyzed.
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio exhibited volatility over the five-year period. It started very high at 14.08 in 2015, plummeted to 7.31 in 2016, rose sharply to 12.77 in 2017, then gradually decreased again to 10.61 in 2018 and further down to 7.51 in 2019. This indicates fluctuating efficiency in generating revenue from fixed assets, with the most efficient use occurring in 2015 and 2017, and lower efficiency in other years, particularly in the last year analyzed.
Total Asset Turnover
Marriott International Inc., total asset turnover 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) | ||||||
| Revenues | ||||||
| Total assets | ||||||
| Long-term Activity Ratio | ||||||
| Total asset turnover1 | ||||||
| Benchmarks | ||||||
| Total Asset Turnover, Competitors2 | ||||||
| Airbnb Inc. | ||||||
| Booking Holdings Inc. | ||||||
| Chipotle Mexican Grill Inc. | ||||||
| DoorDash, Inc. | ||||||
| McDonald’s Corp. | ||||||
| Starbucks Corp. | ||||||
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
Total asset turnover = Revenues ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
- Revenues
- Revenues exhibited a general upward trend from 2015 to 2019. Starting at 14,486 million US dollars in 2015, revenues increased substantially to 22,894 million in 2017, representing significant growth in the first three years. However, after peaking in 2017, revenues slightly declined to 20,758 million in 2018 and remained relatively stable thereafter, with a minor increase to 20,972 million in 2019. The data suggest initial strong growth followed by a period of stabilization.
- Total Assets
- Total assets showed a dramatic increase between 2015 and 2016, rising from 6,082 million US dollars to 24,140 million. Following this spike, total assets remained relatively stable with minor fluctuations through 2017 to 2019, hovering around the 23,000 to 25,000 million range. This sharp increase in assets in 2016 likely indicates a significant acquisition or capital investment event during that period.
- Total Asset Turnover
- Total asset turnover ratio indicates how efficiently assets generate revenues. This ratio was highest in 2015 at 2.38, reflecting strong asset use efficiency during that year. From 2016 onward, the ratio dropped significantly to 0.71 and while it improved somewhat in subsequent years, reaching 0.96 in 2017, it generally declined again to 0.84 by 2019. These values suggest that despite the substantial increase in total assets, the company experienced a decrease in asset turnover efficiency over time, indicating that assets were producing less revenue per unit value compared to 2015.
Equity Turnover
Marriott International Inc., equity turnover 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) | ||||||
| Revenues | ||||||
| Shareholders’ equity (deficit) | ||||||
| Long-term Activity Ratio | ||||||
| Equity turnover1 | ||||||
| Benchmarks | ||||||
| Equity Turnover, Competitors2 | ||||||
| Airbnb Inc. | ||||||
| Booking Holdings Inc. | ||||||
| Chipotle Mexican Grill Inc. | ||||||
| DoorDash, Inc. | ||||||
| McDonald’s Corp. | ||||||
| Starbucks Corp. | ||||||
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
Equity turnover = Revenues ÷ Shareholders’ equity (deficit)
= ÷ =
2 Click competitor name to see calculations.
- Revenues
- The revenues exhibited a fluctuating trend over the five-year period. Starting from 14,486 million US dollars in 2015, there was a significant increase to 17,072 million in 2016, followed by a sharp rise to 22,894 million in 2017. However, in 2018, revenues declined to 20,758 million and saw a marginal increase to 20,972 million in 2019, indicating a plateauing or slight recovery after the previous decline.
- Shareholders' Equity (Deficit)
- The shareholders' equity demonstrated considerable volatility. It started with a deficit of -3,590 million US dollars in 2015, then shifted to a positive position of 5,357 million in 2016, marking a substantial improvement. Subsequently, equity declined to 3,731 million in 2017 and further decreased to 2,225 million in 2018, followed by a continued reduction to 703 million in 2019. This downward trajectory after 2016 suggests increasing pressures or challenges affecting the company's net asset position.
- Equity Turnover
- Equity turnover ratios, available from 2016 onward, showed a consistently increasing pattern. Starting at 3.19 in 2016, the ratio nearly doubled to 6.14 in 2017, then increased substantially to 9.33 in 2018. The most dramatic rise occurred in 2019, with the equity turnover reaching 29.83. This sharp increase reflects improved efficiency in utilizing shareholders' equity to generate revenues, possibly driven by the significant reduction in equity while revenues remained comparatively stable.