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), 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).
- Gross Profit Margin
- The gross profit margin exhibits a consistent upward trend from March 2015 to December 2018, rising from approximately 14.66% to a peak near 17.88%. Following this peak, a gradual decline is noted through 2019 and into the first quarter of 2020, where the margin decreases to 14.31%. This pattern suggests initial improvement in cost management or pricing strategies, with a subsequent contraction possibly reflecting increased costs or pricing pressures.
- Operating Profit Margin
- The operating profit margin starts above 9% in the 2015 periods shown, then dips to around 8% by the end of 2016. There is a period of recovery and growth from 2017 through to 2018, culminating in margins exceeding 11% by late 2018. However, from early 2019 onward, operating margins progressively decline, reaching approximately 6.8% by March 2020. This trajectory indicates fluctuating operational efficiency and potential cost challenges impacting profitability towards early 2020.
- Net Profit Margin
- The net profit margin follows a broad upward trend from mid-2015 through 2018, increasing from just under 6% to over 9% by late 2018. After peaking, a downturn begins in 2019, with margins falling steadily to 4.5% by the first quarter of 2020. This decline at the end of the period could be indicative of increased expenses, reduced revenues, or tax impacts affecting net profitability.
- Return on Equity (ROE)
- Return on equity demonstrates notable volatility and a pronounced upward trend starting in late 2015. The ROE increases sharply from approximately 12.63% to extraordinary levels exceeding 150% by the end of 2019. The data suggest significant leverage or extraordinary gains influencing equity returns. The lack of data for March 2020 limits conclusions for that period.
- Return on Assets (ROA)
- Return on assets initially remains stable around 13-14% through mid-2015, then dramatically declines to roughly 3% by the end of 2016. Thereafter, a gradual recovery ensues through 2018, reaching just over 8%, before a decrease starts anew in 2019 and continues into early 2020, settling near 3.64%. This pattern implies fluctuations in asset utilization efficiency, with notable impairment or reduced asset earnings around 2016 and again as the period approaches 2020.
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 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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) | 530) | 519) | 553) | 521) | |||||||
| 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) | 3,706) | 3,578) | 3,689) | 3,513) | |||||||
| 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% | 14.66% | — | — | — | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Gross Profit Margin, Competitors2 | ||||||||||||||||||||||||||||
| Airbnb Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Chipotle Mexican Grill Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| McDonald’s Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Starbucks Corp. | 28.35% | 28.25% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
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
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.
The analysis of the quarterly financial data reveals several notable trends in the company's performance over the given period.
- Gross Profit
- Gross profit generally shows an upward trend from March 2015 to December 2018, increasing from $521 million to a peak of $1,111 million in June 2018. This represents a significant growth in profit over this period. However, following this peak, gross profit declines gradually with some fluctuations, reaching $532 million by March 2020, indicating a weakening in gross profit towards the end of the analyzed timeline.
- Revenues
- Revenues exhibit a similar tendency, with an overall increase from $3,513 million in March 2015 to a high of $5,875 million in December 2017. After this peak, revenues fluctuate but maintain relatively high levels until late 2019. From March 2019 onwards, there is a noticeable decline in revenues, dropping to $4,681 million by March 2020. This indicates a downturn in revenue generation in the most recent quarters.
- Gross Profit Margin
- The gross profit margin displays a consistent upward trend from early 2015, where data becomes available, through to December 2018. It rises from approximately 14.66% in March 2015 to a high of about 17.88% in June 2018, reflecting improved profitability efficiency. Post this peak, the margin declines steadily to about 14.31% by March 2020, suggesting diminishing profitability relative to revenues in the latest quarter.
Overall, the data suggests strong growth in revenues and gross profit margin through the mid-2010s, peaking around 2017-2018, followed by a period of contraction and declining profitability by early 2020. The downward trends in both absolute profits and profit margins in recent periods may warrant further investigation into underlying causes and strategic responses.
Operating Profit Margin
Marriott International Inc., operating profit margin calculation (quarterly data)
| Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Operating income | 114) | 274) | 607) | 409) | 510) | 422) | 596) | 818) | 530) | 570) | 632) | 620) | 537) | 441) | 171) | 389) | 367) | 310) | 339) | 369) | 332) | |||||||
| 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) | 3,706) | 3,578) | 3,689) | 3,513) | |||||||
| 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% | 9.32% | — | — | — | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Operating Profit Margin, Competitors2 | ||||||||||||||||||||||||||||
| Airbnb Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Booking Holdings Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Chipotle Mexican Grill Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| McDonald’s Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Starbucks Corp. | 15.88% | 15.38% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
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
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 operating income demonstrates variability with a general upward trend from early 2015 through 2019, followed by a sharp decline in the first quarter of 2020. Starting at $332 million in Q1 2015, operating income increased with some fluctuations to a peak of $818 million in Q2 2018. After this peak, the income experienced a decline, reaching $607 million in Q4 2019 before dropping steeply to $114 million in Q1 2020.
Revenues increased steadily overall from 2015 to 2019, indicating growth in business activity. Beginning at $3,513 million in Q1 2015, revenues rose gradually with some seasonal fluctuations, peaking at $5,795 million in Q2 2017 and maintaining figures near or above $5,000 million until late 2019. By Q1 2020, revenues had decreased to $4,681 million, signaling a contraction compared to previous quarters.
The operating profit margin displayed a general improving trend from the available data starting in Q1 2016. The margin was around 9.32% in Q1 2016 and increased steadily, reaching a high of 11.78% in Q4 2018. After this point, margins declined somewhat but remained above 9% through 2019, falling to 6.8% in Q1 2020. This margin contraction corresponds with the notable drop in operating income and revenues in early 2020.
- Overall Trend
- Growth in both operating income and revenues was evident from 2015 through 2019, suggesting increasing operational scale and improved profitability over most of this period.
- Seasonal and Quarterly Variations
- Quarterly revenue and income figures show periodic fluctuations, with some quarters in 2017 and 2018 outperforming others significantly, indicating potential seasonal influences or special market factors.
- Profitability
- The operating profit margin improvement through 2016 to 2018 reflects effective cost management and operational efficiency gains, before a reversal in 2019 and a pronounced decrease in early 2020.
- 2020 Decline
- Most notably, Q1 2020 data shows a sharp decline in revenues, operating income, and profit margin, highlighting a significant adverse event or changing market conditions impacting financial performance.
Net Profit Margin
Marriott International Inc., net profit margin calculation (quarterly data)
| Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ 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) | |||||||
| 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) | 3,706) | 3,578) | 3,689) | 3,513) | |||||||
| 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% | 5.93% | — | — | — | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Net Profit Margin, Competitors2 | ||||||||||||||||||||||||||||
| Airbnb Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Booking Holdings Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Chipotle Mexican Grill Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| McDonald’s Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Starbucks Corp. | 13.81% | 13.58% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
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
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.
- Net Income Trends
- Net income generally exhibits fluctuations over the observed periods, with notable increases and decreases. Initial quarters of 2015 show moderate net income figures ranging from 202 to 240 million USD. A significant drop occurs in the third quarter of 2016 to 70 million USD, followed by recovery in subsequent quarters. The highest net income appears in the second quarter of 2018 at 667 million USD, after which there is a downward trend observed through 2019, culminating in a sharp decline to 31 million USD by the first quarter of 2020.
- Revenue Trends
- Revenues demonstrate a generally upward trend from 2015 through 2019, starting at approximately 3.5 billion USD in early 2015 and rising to peaks exceeding 5.7 billion USD around the end of 2017. Following these peaks, some volatility is observed with revenues slightly decreasing and averaging around 5 billion USD through 2018 and 2019. A noticeable decline in revenue is evident in the first quarter of 2020, falling to 4.68 billion USD.
- Net Profit Margin Trends
- The net profit margin shows an increasing trend during the period from late 2015 through 2018, improving from around 5.9% to a peak of approximately 9.19% by early 2019. This indicates enhanced profitability relative to revenue. However, after this peak, the margin declines moderately, dropping to 4.5% by the first quarter of 2020, suggesting reduced operational efficiency or increased costs relative to revenue during this recent period.
- Overall Analysis
- The financial data suggests growth with some volatility in both income and revenues over the years analyzed. The significant increase in net income and profit margin between 2017 and early 2019 indicates a strong performance phase, potentially driven by effective cost management or revenue growth. However, the sharp declines in net income and margins, especially in the first quarter of 2020, combined with the drop in revenue, highlight emerging challenges that have adversely affected profitability. This downturn could be symptomatic of broader market or industry conditions impacting the company’s financial health.
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 | 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) | |||||||
| 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) | |||||||
| 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. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| 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
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.
The financial data reveals several notable patterns in net income, shareholders’ equity, and return on equity (ROE) for the periods analyzed.
- Net Income
- Net income exhibits a generally positive trend with fluctuations throughout the periods. Starting at 207 million USD in Q1 2015, the values initially increase, reaching peaks around the end of 2015 and into 2017. The highest quarterly net income is observed in Q2 2018 at 667 million USD. A general decline follows, particularly in 2019 and early 2020, compiling a sharp drop to 31 million USD in Q1 2020. The variability suggests periods of strong operational performance intermixed with challenges affecting income, notably the steep decline at the start of 2020.
- Shareholders’ Equity (Deficit)
- Shareholders’ equity begins with a substantial deficit from Q1 2015 through mid-2016, with negative values deepening from -2,537 million USD to -3,667 million USD. A significant reversal occurs starting Q3 2016, where equity turns positive at 5,841 million USD and remains positive but generally declines across subsequent quarters. From Q1 2017 onward, the equity steadily decreases from 5,168 million USD to just below zero at -20 million USD by Q1 2020. This indicates recovery from deficit to positive equity in mid-2016, followed by a gradual erosion of equity capital, nearing breakeven by early 2020.
- Return on Equity (ROE)
- ROE data begins being reported from Q3 2016. It demonstrates a consistent and pronounced upward trajectory throughout the periods. Starting at 12.63% in Q3 2016, ROE increases significantly each quarter, reaching an exceptional high of 181.08% by Q4 2019. This trend reflects improving profitability relative to shareholders’ equity, despite the decreasing equity base, which likely magnifies the ROE percentage. However, the absence of data for Q1 2020 prevents assessment of ROE during the first quarter impacted by market disruptions.
In summary, the data indicates strengthening net income trends up to mid-2018 followed by a decline through early 2020, a notable recovery and subsequent decline of shareholders’ equity, and a steadily rising ROE, suggesting improving efficiency in generating profits from available equity. The sharp decline in net income and near-zero equity in early 2020 imply potential financial stress or external challenges affecting the results in that period.
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 | 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) | |||||||
| 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) | |||||||
| 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% | 14.12% | — | — | — | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| ROA, Competitors2 | ||||||||||||||||||||||||||||
| Airbnb Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Booking Holdings Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Chipotle Mexican Grill Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| McDonald’s Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Starbucks Corp. | 13.43% | 18.73% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
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
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 results reveals several significant trends and changes over the observed periods.
- Net Income
- The net income demonstrates a fluctuating pattern with generally increasing values from the first quarter of 2015 through the third quarter of 2018. Notably, net income reached a peak in the second quarter of 2018 at 667 million USD. Following this peak, there is a decline with fluctuations but remaining positive until the first quarter of 2020, where net income sharply declined to 31 million USD. This significant drop suggests adverse effects on profitability in early 2020.
- Total Assets
- Total assets show an initial moderate level around 6,800 million USD in the first quarter of 2015 and remain relatively stable until the second quarter of 2016. A marked increase occurs in the third quarter of 2016, jumping to 25,002 million USD and staying around that level thereafter throughout 2019 and into early 2020. This large step-up indicates a substantial acquisition, investment, or revaluation event causing a major increase in asset base.
- Return on Assets (ROA)
- ROA was unavailable for early periods but from the first quarter of 2016, it shows a decrease from 14.12% to a low of 2.95% by the third quarter of 2016, coinciding with the massive asset increase. After this decline, ROA gradually recovers and trends upward, peaking around 8.05% in the third quarter of 2018, before showing a gradual decline towards early 2020. The drop to 3.64% in the first quarter of 2020 indicates a reduction in profitability relative to assets, consistent with the observed decline in net income.
Overall, the data indicate a period of significant expansion or investment in total assets during mid-2016, which temporarily suppressed profitability metrics such as ROA. Net income and ROA recover over the next two years suggesting improving operational efficiency or market conditions. The sharp drop in net income and ROA in the first quarter of 2020 points to emerging challenges in that period, potentially linked to broader economic events affecting financial performance.