Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Marriott International Inc., profitability ratios
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).
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Marriott International Inc. gross profit margin ratio improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019. |
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Marriott International Inc. operating profit margin ratio improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019. |
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Marriott International Inc. net profit margin ratio improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019 not reaching 2017 level. |
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Marriott International Inc. ROE improved from 2017 to 2018 and from 2018 to 2019. |
| ROA | A profitability ratio calculated as net income divided by total assets. | Marriott International Inc. ROA improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019. |
Gross Profit Margin
Marriott International Inc., gross profit margin 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) | ||||||
| Gross profit | 3,217) | 3,674) | 3,702) | 2,626) | 2,123) | |
| Revenues | 20,972) | 20,758) | 22,894) | 17,072) | 14,486) | |
| Profitability Ratio | ||||||
| Gross profit margin1 | 15.34% | 17.70% | 16.17% | 15.38% | 14.66% | |
| Benchmarks | ||||||
| Gross Profit Margin, Competitors2 | ||||||
| Airbnb Inc. | — | — | — | — | — | |
| Carnival Corp. & plc | 38.01% | 41.27% | — | — | — | |
| Chipotle Mexican Grill Inc. | 20.45% | — | — | — | — | |
| McDonald’s Corp. | 52.74% | — | — | — | — | |
| Starbucks Corp. | 28.25% | 29.74% | — | — | — | |
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
Gross profit margin = 100 × Gross profit ÷ Revenues
= 100 × 3,217 ÷ 20,972 = 15.34%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Marriott International Inc. gross profit margin ratio improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019. |
Operating Profit Margin
Marriott International Inc., operating profit margin 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) | ||||||
| Operating income | 1,800) | 2,366) | 2,359) | 1,368) | 1,350) | |
| Revenues | 20,972) | 20,758) | 22,894) | 17,072) | 14,486) | |
| Profitability Ratio | ||||||
| Operating profit margin1 | 8.58% | 11.40% | 10.30% | 8.01% | 9.32% | |
| Benchmarks | ||||||
| Operating Profit Margin, Competitors2 | ||||||
| Airbnb Inc. | — | — | — | — | — | |
| Booking Holdings Inc. | 35.48% | — | — | — | — | |
| Carnival Corp. & plc | 15.73% | 17.61% | — | — | — | |
| Chipotle Mexican Grill Inc. | 7.95% | — | — | — | — | |
| McDonald’s Corp. | 43.03% | — | — | — | — | |
| Starbucks Corp. | 15.38% | 15.71% | — | — | — | |
| Operating Profit Margin, Sector | ||||||
| Consumer Services | 24.94% | — | — | — | — | |
| Operating Profit Margin, Industry | ||||||
| Consumer Discretionary | 7.81% | — | — | — | — | |
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
Operating profit margin = 100 × Operating income ÷ Revenues
= 100 × 1,800 ÷ 20,972 = 8.58%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Marriott International Inc. operating profit margin ratio improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019. |
Net Profit Margin
Marriott International Inc., net profit margin 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) | ||||||
| Net income | 1,273) | 1,907) | 1,372) | 780) | 859) | |
| Revenues | 20,972) | 20,758) | 22,894) | 17,072) | 14,486) | |
| Profitability Ratio | ||||||
| Net profit margin1 | 6.07% | 9.19% | 5.99% | 4.57% | 5.93% | |
| Benchmarks | ||||||
| Net Profit Margin, Competitors2 | ||||||
| Airbnb Inc. | — | — | — | — | — | |
| Booking Holdings Inc. | 32.29% | — | — | — | — | |
| Carnival Corp. & plc | 14.36% | 16.69% | — | — | — | |
| Chipotle Mexican Grill Inc. | 6.27% | — | — | — | — | |
| McDonald’s Corp. | 28.59% | — | — | — | — | |
| Starbucks Corp. | 13.58% | 18.28% | — | — | — | |
| Net Profit Margin, Sector | ||||||
| Consumer Services | 20.02% | — | — | — | — | |
| Net Profit Margin, Industry | ||||||
| Consumer Discretionary | 6.11% | — | — | — | — | |
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 profit margin = 100 × Net income ÷ Revenues
= 100 × 1,273 ÷ 20,972 = 6.07%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Marriott International Inc. net profit margin ratio improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019 not reaching 2017 level. |
Return on Equity (ROE)
Marriott International Inc., ROE 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) | ||||||
| Net income | 1,273) | 1,907) | 1,372) | 780) | 859) | |
| Shareholders’ equity (deficit) | 703) | 2,225) | 3,731) | 5,357) | (3,590) | |
| Profitability Ratio | ||||||
| ROE1 | 181.08% | 85.71% | 36.77% | 14.56% | — | |
| Benchmarks | ||||||
| ROE, Competitors2 | ||||||
| Airbnb Inc. | — | — | — | — | — | |
| Booking Holdings Inc. | 82.00% | — | — | — | — | |
| Carnival Corp. & plc | 11.79% | 12.90% | — | — | — | |
| Chipotle Mexican Grill Inc. | 20.81% | — | — | — | — | |
| McDonald’s Corp. | — | — | — | — | — | |
| Starbucks Corp. | — | 386.34% | — | — | — | |
| ROE, Sector | ||||||
| Consumer Services | 96.18% | — | — | — | — | |
| ROE, Industry | ||||||
| Consumer Discretionary | 31.39% | — | — | — | — | |
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
ROE = 100 × Net income ÷ Shareholders’ equity (deficit)
= 100 × 1,273 ÷ 703 = 181.08%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Marriott International Inc. ROE improved from 2017 to 2018 and from 2018 to 2019. |
Return on Assets (ROA)
Marriott International Inc., ROA 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) | ||||||
| Net income | 1,273) | 1,907) | 1,372) | 780) | 859) | |
| Total assets | 25,051) | 23,696) | 23,948) | 24,140) | 6,082) | |
| Profitability Ratio | ||||||
| ROA1 | 5.08% | 8.05% | 5.73% | 3.23% | 14.12% | |
| Benchmarks | ||||||
| ROA, Competitors2 | ||||||
| Airbnb Inc. | — | — | — | — | — | |
| Booking Holdings Inc. | 22.73% | — | — | — | — | |
| Carnival Corp. & plc | 6.64% | 7.43% | — | — | — | |
| Chipotle Mexican Grill Inc. | 6.86% | — | — | — | — | |
| McDonald’s Corp. | 12.68% | — | — | — | — | |
| Starbucks Corp. | 18.73% | 18.70% | — | — | — | |
| ROA, Sector | ||||||
| Consumer Services | 12.89% | — | — | — | — | |
| ROA, Industry | ||||||
| Consumer Discretionary | 5.62% | — | — | — | — | |
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
ROA = 100 × Net income ÷ Total assets
= 100 × 1,273 ÷ 25,051 = 5.08%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROA | A profitability ratio calculated as net income divided by total assets. | Marriott International Inc. ROA improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019. |