Analysis of Profitability Ratios
Quarterly Data
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Marriott International Inc., profitability 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).
The financial data reveals several notable trends in profitability and efficiency metrics over the analyzed periods.
- Gross Profit Margin
- The gross profit margin shows a general upward trend from 14.67% in the first quarter of 2016, reaching a peak near 17.88% in the third quarter of 2018. After this peak, the margin slightly declines, ending at 14.31% in the first quarter of 2020. This pattern indicates an initial improvement in the core profitability of sales, followed by a modest deterioration toward the end of the period.
- Operating Profit Margin
- The operating profit margin experiences gradual improvement from around 9.39% early in 2016, increasing steadily to about 11.78% by the third quarter of 2018. Subsequently, the margin decreases, dropping to 6.8% in the first quarter of 2020. This downward turn in operating performance during the latter periods suggests rising operating costs or reduced operational efficiency.
- Net Profit Margin
- Net profit margin trends upward across most of the timeline, beginning near 5.91% in early 2016 and peaking at 9.19% by the end of 2018. It then declines, falling to 4.5% by early 2020. The increase in net profitability through 2018 highlights improved overall profitability, but the subsequent decline may reflect higher expenses, decreased revenues, or other adverse financial factors affecting the bottom line.
- Return on Equity (ROE)
- The return on equity exhibits strong growth from 12.63% in mid-2016 to extremely high levels exceeding 150% by the end of 2019. Such a dramatic increase could indicate significant improvements in the company's efficiency in generating shareholder returns or changes in financial leverage. However, the absence of data for the first quarter of 2020 limits insights into the most recent performance.
- Return on Assets (ROA)
- The ROA shows variability, initially high at over 14% in early 2016 but dropping sharply around the third quarter of 2016 to below 3%. Afterward, it gradually climbs to approximately 8% by late 2018, before trending down again to 3.64% at the start of 2020. The fluctuations in ROA suggest variability in asset utilization efficiency and possible changes in asset base or profitability.
In summary, profitability margins generally improved through 2018 but faced declines heading into 2020, possibly reflecting operational challenges or market conditions. The ROE indicates very strong shareholder returns especially after 2017, which might be influenced by financial structure changes. The ROA data reveals inconsistent asset efficiency with a notable dip in mid-2016 and a later decline at the beginning of 2020. These trends collectively suggest a period of financial improvement followed by emerging pressures impacting profitability and asset utilization.
Return on Sales
Return on Investment
Gross Profit Margin
Marriott International Inc., gross profit margin 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Gross profit | 532) | 667) | 888) | 867) | 795) | 817) | 881) | 1,111) | 865) | 960) | 927) | 952) | 863) | 882) | 596) | 587) | 561) | ||||||
| Revenues | 4,681) | 5,371) | 5,284) | 5,305) | 5,012) | 5,289) | 5,051) | 5,409) | 5,009) | 5,875) | 5,663) | 5,795) | 5,561) | 5,456) | 3,942) | 3,902) | 3,772) | ||||||
| Profitability Ratio | |||||||||||||||||||||||
| Gross profit margin1 | 14.31% | 15.34% | 16.12% | 16.27% | 17.36% | 17.70% | 17.88% | 17.59% | 16.58% | 16.17% | 16.12% | 15.87% | 15.52% | 15.38% | 14.84% | 14.69% | 14.67% | ||||||
| Benchmarks | |||||||||||||||||||||||
| Gross Profit Margin, Competitors2 | |||||||||||||||||||||||
| Airbnb Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Chipotle Mexican Grill Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| DoorDash, 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).
1 Q1 2020 Calculation
Gross profit margin = 100
× (Gross profitQ1 2020
+ Gross profitQ4 2019
+ Gross profitQ3 2019
+ Gross profitQ2 2019)
÷ (RevenuesQ1 2020
+ RevenuesQ4 2019
+ RevenuesQ3 2019
+ RevenuesQ2 2019)
= 100 × (532 + 667 + 888 + 867)
÷ (4,681 + 5,371 + 5,284 + 5,305)
= 14.31%
2 Click competitor name to see calculations.
- Revenue Trends
- Revenues demonstrated an overall upward trajectory from early 2016 through 2019, starting at $3,772 million in March 2016 and reaching a peak of $5,375 million by December 2019. There were some fluctuations within quarters, but the general pattern showed steady growth over the years. In the first quarter of 2020, however, revenues declined sharply to $4,681 million, reflecting a notable downturn compared to previous quarters.
- Gross Profit Trends
- Gross profit followed a generally positive trend alongside revenues until 2019, increasing from $561 million in March 2016 to $888 million in September 2019. Despite some quarter-to-quarter volatility, gross profit margins generally expanded over this period. The gross profit then declined to $667 million in December 2019 and further dropped to $532 million in March 2020, highlighting a significant reduction in profitability during the most recent period observed.
- Gross Profit Margin Trends
- The gross profit margin exhibited a gradual improvement from 14.67% in the first quarter of 2016, reaching a high of 17.88% in the third quarter of 2018. This indicates growing efficiency in generating profit from revenues during the growth phase. Starting late 2018, the margin showed a downward trend, decreasing to 14.31% by the first quarter of 2020. The reduction in margin suggests increasing cost pressures or less favorable sales mix impacting profitability as the business approached early 2020.
- Overall Analysis
- The data reflects a period of consistent growth in revenues and gross profit between 2016 and 2019 with improving profitability metrics. The subsequent significant decline in both revenues and gross profit during early 2020, along with a compressing gross profit margin, indicates emerging challenges that have adversely affected financial performance. This pattern calls for a closer examination of the underlying factors that contributed to the downturn, particularly focusing on cost management and revenue stabilization strategies amid changing market conditions.
Operating Profit Margin
Marriott International Inc., operating profit margin calculation (quarterly data)
| Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Operating income | 114) | 274) | 607) | 409) | 510) | 422) | 596) | 818) | 530) | 570) | 632) | 620) | 537) | 441) | 171) | 389) | 367) | ||||||
| Revenues | 4,681) | 5,371) | 5,284) | 5,305) | 5,012) | 5,289) | 5,051) | 5,409) | 5,009) | 5,875) | 5,663) | 5,795) | 5,561) | 5,456) | 3,942) | 3,902) | 3,772) | ||||||
| Profitability Ratio | |||||||||||||||||||||||
| Operating profit margin1 | 6.80% | 8.58% | 9.33% | 9.38% | 11.30% | 11.40% | 11.78% | 11.61% | 10.53% | 10.30% | 9.92% | 8.52% | 8.15% | 8.01% | 8.07% | 9.39% | 9.39% | ||||||
| Benchmarks | |||||||||||||||||||||||
| Operating Profit Margin, Competitors2 | |||||||||||||||||||||||
| Airbnb Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Booking Holdings Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Chipotle Mexican Grill Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| DoorDash, 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).
1 Q1 2020 Calculation
Operating profit margin = 100
× (Operating incomeQ1 2020
+ Operating incomeQ4 2019
+ Operating incomeQ3 2019
+ Operating incomeQ2 2019)
÷ (RevenuesQ1 2020
+ RevenuesQ4 2019
+ RevenuesQ3 2019
+ RevenuesQ2 2019)
= 100 × (114 + 274 + 607 + 409)
÷ (4,681 + 5,371 + 5,284 + 5,305)
= 6.80%
2 Click competitor name to see calculations.
The financial data reflects notable fluctuations and trends in operating income, revenues, and operating profit margin over the observed quarterly periods.
- Operating Income
- Operating income exhibited an overall upward trajectory from early 2016 through the majority of 2017, increasing from 367 million USD in March 2016 to a peak of 632 million USD in September 2017. However, this figure showed volatility thereafter, with declines during the last quarters of 2017 and 2018, followed by a slight recovery throughout 2019 before declining sharply to 114 million USD by March 2020. The steep drop in the last quarter is significant and likely influenced by external adverse conditions.
- Revenues
- Revenues generally trended upward until mid-2017, rising from roughly 3.8 billion USD in early 2016 to nearly 5.9 billion USD by the end of 2017. The period from early 2018 to 2019 shows moderate fluctuations, with revenues oscillating between approximately 5.0 billion and 5.3 billion USD. In early 2020, a notable decline to 4.7 billion USD was recorded, marking the lowest point in the data set, indicating a significant downturn in sales or service volumes.
- Operating Profit Margin
- Operating profit margin increased gradually from 9.39% in the first quarter of 2016 to a peak of around 11.78% in the third quarter of 2018. This improvement suggests enhanced operational efficiency or favorable cost controls during this interval. Following this peak, the margin declined progressively, falling to 6.8% by March 2020, which corresponds with the substantial reduction in operating income and revenues, indicating strained profitability conditions.
Overall, the data indicates solid growth and improving profitability up to late 2018, followed by volatility and a marked downturn starting in 2019 through early 2020. The sharp declines in both operating income and revenue by the first quarter of 2020, accompanied by a reduced operating margin, point to a challenging operating environment impacting financial performance significantly.
Net Profit Margin
Marriott International Inc., net profit margin 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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) | ||||||
| Revenues | 4,681) | 5,371) | 5,284) | 5,305) | 5,012) | 5,289) | 5,051) | 5,409) | 5,009) | 5,875) | 5,663) | 5,795) | 5,561) | 5,456) | 3,942) | 3,902) | 3,772) | ||||||
| Profitability Ratio | |||||||||||||||||||||||
| Net profit margin1 | 4.50% | 6.07% | 6.28% | 6.91% | 8.97% | 9.19% | 8.39% | 7.65% | 6.39% | 5.99% | 6.30% | 5.27% | 4.91% | 4.57% | 4.82% | 5.87% | 5.91% | ||||||
| Benchmarks | |||||||||||||||||||||||
| Net Profit Margin, Competitors2 | |||||||||||||||||||||||
| Airbnb Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Booking Holdings Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Chipotle Mexican Grill Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| DoorDash, 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).
1 Q1 2020 Calculation
Net profit margin = 100
× (Net incomeQ1 2020
+ Net incomeQ4 2019
+ Net incomeQ3 2019
+ Net incomeQ2 2019)
÷ (RevenuesQ1 2020
+ RevenuesQ4 2019
+ RevenuesQ3 2019
+ RevenuesQ2 2019)
= 100 × (31 + 279 + 387 + 232)
÷ (4,681 + 5,371 + 5,284 + 5,305)
= 4.50%
2 Click competitor name to see calculations.
The financial data indicates several noteworthy trends in the company's quarterly performance over the examined periods.
- Net Income
-
Net income fluctuated significantly through the quarters. Initial quarters in 2016 show moderate net income figures, with a notable dip in the third quarter of 2016. The year 2017 saw a generally upward trend, peaking in the second quarter. A strong performance continued into 2018, reaching the highest net income in the second quarter of that year. Through 2019, net income remained relatively stable but showed a slight downward trend in the latter half. A sharp decline occurred in the first quarter of 2020, with net income dropping to its lowest point in the observed timeline.
- Revenues
-
Revenues demonstrated a general upward trend from early 2016 through the end of 2019, with some seasonality evident, as the fourth quarters tend to have higher revenues than preceding quarters. The data points to a peak in revenue in the fourth quarter of 2016, followed by a consistent increase through 2017. In 2018 and 2019, revenues remained relatively stable, fluctuating within a moderate range without substantial growth. In the first quarter of 2020, there was a noticeable decrease in revenue compared to the previous quarters.
- Net Profit Margin
-
The net profit margin displayed a generally positive trajectory throughout the period, improving from approximately 5.9% in early 2016 to a peak exceeding 9% in the last quarter of 2018. This upward trend suggests improving operational efficiency or better cost control during this period. However, the margin started to decline gradually during 2019 and fell more significantly in the first quarter of 2020, indicative of rising costs relative to revenues or other adverse factors affecting profitability.
Overall, the company experienced growth in both revenues and profitability up until late 2018, followed by a plateau and slight decline in 2019. The first quarter of 2020 marks a substantial downturn in all key metrics, reflecting a challenging operating environment impacting income, revenue, and profit margins.
Return on Equity (ROE)
Marriott International Inc., ROE 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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) | ||||||
| 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) | ||||||
| Profitability Ratio | |||||||||||||||||||||||
| ROE1 | — | 181.08% | 156.44% | 115.08% | 116.16% | 85.71% | 77.07% | 59.13% | 40.02% | 36.77% | 31.36% | 22.30% | 17.92% | 14.56% | 12.63% | — | — | ||||||
| Benchmarks | |||||||||||||||||||||||
| ROE, Competitors2 | |||||||||||||||||||||||
| Airbnb Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Booking Holdings Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Chipotle Mexican Grill Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| DoorDash, 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).
1 Q1 2020 Calculation
ROE = 100
× (Net incomeQ1 2020
+ Net incomeQ4 2019
+ Net incomeQ3 2019
+ Net incomeQ2 2019)
÷ Shareholders’ equity (deficit)
= 100 × (31 + 279 + 387 + 232)
÷ -20 = —
2 Click competitor name to see calculations.
- Net Income
-
Net income demonstrates considerable volatility across the observed quarters. Starting at $219 million in the first quarter of 2016, it experienced fluctuations throughout 2016, with a low of $70 million in Q3 and a near tripling to $244 million by year-end. In 2017, net income showed a general upward trend in the first three quarters, peaking at $414 million in Q2, then declining towards the end of the year to $201 million in Q4.
The trend reversed in 2018 with strong quarter-to-quarter growth, attaining a peak of $667 million in Q2, followed by a reduction towards Q4 but remaining above $300 million. In 2019, net income displayed more stability relative to the prior years, fluctuating mostly in the range of $232 million to $387 million. However, a sharp and significant drop occurred in Q1 2020, with net income plunging to $31 million, likely reflective of adverse conditions emerging during that period.
- Shareholders' Equity
-
Shareholders’ equity experienced notable variability, beginning with a significant deficit (-$3,667 million) at the start of 2016, then improving sharply to positive values by mid-2016, reaching $5,841 million in Q3. Thereafter, shareholders’ equity saw a consistent declining pattern from late 2016 through 2019, decreasing from $5,357 million to $703 million by Q4 2019.
The trend continued downward into Q1 2020, falling to a slight negative value (-$20 million). This persistent decline over multiple years suggests ongoing challenges affecting the capital base or distribution of earnings, potentially linked to losses or significant dividend payments during these intervals.
- Return on Equity (ROE)
-
Return on equity showed a strong and continuous increase where data is available, notably absent for the initial quarters of 2016 but rising sharply from 12.63% in Q3 2016 to a remarkable 181.08% by Q4 2019. This upward trajectory indicates that the company was increasingly effective in generating profits relative to its equity over these years.
The rapid increase in ROE, especially the pronounced surge after 2017, despite declining shareholders' equity, suggests the leverage effect as equity decreased while net income was relatively stable or increasing.
- Overall Analysis
-
The financial results reflect significant operational volatility and capital structure adjustments across the analyzed period. Net income's considerable fluctuations, paired with a steady erosion of shareholders' equity, culminate in a markedly increased ROE, highlighting the impact of decreased equity on returns.
The sharp decline in net income and the near-zero shareholders’ equity position in early 2020 signal challenging financial conditions, potentially arising from external market disruptions. These dynamics warrant close monitoring and possible strategic adjustments to restore stability and enhance shareholder value.
Return on Assets (ROA)
Marriott International Inc., ROA calculation (quarterly data)
| Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Net income | 31) | 279) | 387) | 232) | 375) | 317) | 503) | 667) | 420) | 201) | 392) | 414) | 365) | 244) | 70) | 247) | 219) | ||||||
| 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) | ||||||
| Profitability Ratio | |||||||||||||||||||||||
| ROA1 | 3.64% | 5.08% | 5.28% | 5.73% | 7.52% | 8.05% | 7.51% | 7.05% | 5.83% | 5.73% | 5.84% | 4.58% | 3.87% | 3.23% | 2.95% | 13.20% | 14.23% | ||||||
| Benchmarks | |||||||||||||||||||||||
| ROA, Competitors2 | |||||||||||||||||||||||
| Airbnb Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Booking Holdings Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Chipotle Mexican Grill Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| DoorDash, 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).
1 Q1 2020 Calculation
ROA = 100
× (Net incomeQ1 2020
+ Net incomeQ4 2019
+ Net incomeQ3 2019
+ Net incomeQ2 2019)
÷ Total assets
= 100 × (31 + 279 + 387 + 232)
÷ 25,549 = 3.64%
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several key trends across net income, total assets, and return on assets (ROA) for the examined period.
- Net Income
- Net income exhibits seasonal fluctuations with notable peaks typically observed in the first half of 2018 and 2019. The highest recorded net income within the period was 667 million USD in the second quarter of 2018. Prior to that, net income had considerable variability, including a significant drop to 70 million USD in the third quarter of 2016. From 2016 through 2019, the general trend shows some volatility but remains positive, with relatively strong earnings in early 2017, 2018, and 2019. However, there is a sharp decrease in net income during the first quarter of 2020, falling to 31 million USD, which indicates a substantial decline compared to previous quarters, likely reflecting emerging challenges.
- Total Assets
- Total assets demonstrate an initial substantial increase between June and September 2016, rising sharply from approximately 6,650 million USD to 25,002 million USD. Following this odd jump, total assets remain relatively stable within a range of roughly 23,000 to 25,500 million USD throughout the rest of the period. This stability suggests either a consolidation or steady-state of asset growth post-2016, with minor quarterly fluctuations but no significant shrinking or expansion overall.
- Return on Assets (ROA)
- ROA starts at a high point of 14.23% in the first quarter of 2016 but rapidly declines to around 3% by the third quarter of the same year. From late 2016 onward, ROA shows a gradual upward trend, improving steadily from approximately 3% to above 7% by the end of 2018. In 2019, ROA peaks above 7.5% but then begins to decline again through the year and into early 2020, dropping to 3.64% by the first quarter of 2020. This trajectory suggests fluctuating operational efficiency with a pronounced dip early on, subsequent recovery, and a recent downturn likely tied to the observed decrease in net income.
In summary, the financial data presents a company with considerable volatility in net income and initial asset growth followed by asset stability. Meanwhile, operational efficiency as measured by ROA has experienced periods of recovery and decline, closely correlating with net income patterns. The sharp decline in early 2020 across profitability metrics highlights emerging challenges that may warrant further investigation.