Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Short-term Activity Ratios (Summary)
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).
Short-term activity ratio | Description | The company |
---|---|---|
Receivables turnover | An activity ratio equal to revenue divided by receivables. | Marriott International Inc. receivables turnover ratio deteriorated from 2017 to 2018 and from 2018 to 2019. |
Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Marriott International Inc. payables turnover ratio decreased from 2017 to 2018 but then increased from 2018 to 2019 exceeding 2017 level. |
Short-term activity ratio | Description | The company |
---|---|---|
Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | Marriott International Inc. number of days of receivables outstanding deteriorated from 2017 to 2018 and from 2018 to 2019. |
Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. |
Receivables Turnover
Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions) | ||||||
Revenues | 20,972) | 20,758) | 22,894) | 17,072) | 14,486) | |
Accounts receivable, net | 2,386) | 2,127) | 1,984) | 1,692) | 1,097) | |
Short-term Activity Ratio | ||||||
Receivables turnover1 | 8.79 | 9.76 | 11.54 | 10.09 | 13.21 | |
Benchmarks | ||||||
Receivables Turnover, Competitors2 | ||||||
Airbnb Inc. | — | — | — | — | — | |
Booking Holdings Inc. | 8.97 | — | — | — | — | |
Carnival Corp. & plc | 46.90 | 52.74 | — | — | — | |
Chipotle Mexican Grill Inc. | 69.36 | — | — | — | — | |
McDonald’s Corp. | 4.24 | — | — | — | — | |
Starbucks Corp. | 30.15 | 35.67 | — | — | — | |
Receivables Turnover, Sector | ||||||
Consumer Services | 14.58 | — | — | — | — | |
Receivables Turnover, Industry | ||||||
Consumer Discretionary | 21.69 | — | — | — | — |
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
Receivables turnover = Revenues ÷ Accounts receivable, net
= 20,972 ÷ 2,386 = 8.79
2 Click competitor name to see calculations.
Short-term activity ratio | Description | The company |
---|---|---|
Receivables turnover | An activity ratio equal to revenue divided by receivables. | Marriott International Inc. receivables turnover ratio deteriorated from 2017 to 2018 and from 2018 to 2019. |
Payables Turnover
Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions) | ||||||
Cost of revenues | 17,755) | 17,084) | 19,192) | 14,446) | 12,363) | |
Accounts payable | 720) | 767) | 780) | 687) | 593) | |
Short-term Activity Ratio | ||||||
Payables turnover1 | 24.66 | 22.27 | 24.61 | 21.03 | 20.85 | |
Benchmarks | ||||||
Payables Turnover, Competitors2 | ||||||
Airbnb Inc. | — | — | — | — | — | |
Booking Holdings Inc. | 12.16 | — | — | — | — | |
Carnival Corp. & plc | 17.08 | 15.19 | — | — | — | |
Chipotle Mexican Grill Inc. | 38.37 | — | — | — | — | |
McDonald’s Corp. | 7.85 | — | — | — | — | |
Starbucks Corp. | 15.99 | 14.73 | — | — | — | |
Payables Turnover, Sector | ||||||
Consumer Services | 13.80 | — | — | — | — | |
Payables Turnover, Industry | ||||||
Consumer Discretionary | 5.59 | — | — | — | — |
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
Payables turnover = Cost of revenues ÷ Accounts payable
= 17,755 ÷ 720 = 24.66
2 Click competitor name to see calculations.
Short-term activity ratio | Description | The company |
---|---|---|
Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Marriott International Inc. payables turnover ratio decreased from 2017 to 2018 but then increased from 2018 to 2019 exceeding 2017 level. |
Working Capital Turnover
Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions) | ||||||
Current assets | 3,127) | 2,706) | 2,747) | 3,371) | 1,384) | |
Less: Current liabilities | 6,677) | 6,437) | 6,010) | 5,147) | 3,233) | |
Working capital | (3,550) | (3,731) | (3,263) | (1,776) | (1,849) | |
Revenues | 20,972) | 20,758) | 22,894) | 17,072) | 14,486) | |
Short-term Activity Ratio | ||||||
Working capital turnover1 | — | — | — | — | — | |
Benchmarks | ||||||
Working Capital Turnover, Competitors2 | ||||||
Airbnb Inc. | — | — | — | — | — | |
Booking Holdings Inc. | 3.37 | — | — | — | — | |
Carnival Corp. & plc | — | — | — | — | — | |
Chipotle Mexican Grill Inc. | 13.77 | — | — | — | — | |
McDonald’s Corp. | — | — | — | — | — | |
Starbucks Corp. | — | 3.63 | — | — | — | |
Working Capital Turnover, Sector | ||||||
Consumer Services | — | — | — | — | — | |
Working Capital Turnover, Industry | ||||||
Consumer Discretionary | 32.45 | — | — | — | — |
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
Working capital turnover = Revenues ÷ Working capital
= 20,972 ÷ -3,550 = —
2 Click competitor name to see calculations.
Average Receivable Collection Period
Marriott International Inc., average receivable collection period calculation, comparison to benchmarks
Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
---|---|---|---|---|---|---|
Selected Financial Data | ||||||
Receivables turnover | 8.79 | 9.76 | 11.54 | 10.09 | 13.21 | |
Short-term Activity Ratio (no. days) | ||||||
Average receivable collection period1 | 42 | 37 | 32 | 36 | 28 | |
Benchmarks (no. days) | ||||||
Average Receivable Collection Period, Competitors2 | ||||||
Airbnb Inc. | — | — | — | — | — | |
Booking Holdings Inc. | 41 | — | — | — | — | |
Carnival Corp. & plc | 8 | 7 | — | — | — | |
Chipotle Mexican Grill Inc. | 5 | — | — | — | — | |
McDonald’s Corp. | 86 | — | — | — | — | |
Starbucks Corp. | 12 | 10 | — | — | — | |
Average Receivable Collection Period, Sector | ||||||
Consumer Services | 25 | — | — | — | — | |
Average Receivable Collection Period, Industry | ||||||
Consumer Discretionary | 17 | — | — | — | — |
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
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 8.79 = 42
2 Click competitor name to see calculations.
Short-term activity ratio | Description | The company |
---|---|---|
Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | Marriott International Inc. number of days of receivables outstanding deteriorated from 2017 to 2018 and from 2018 to 2019. |
Average Payables Payment Period
Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
---|---|---|---|---|---|---|
Selected Financial Data | ||||||
Payables turnover | 24.66 | 22.27 | 24.61 | 21.03 | 20.85 | |
Short-term Activity Ratio (no. days) | ||||||
Average payables payment period1 | 15 | 16 | 15 | 17 | 18 | |
Benchmarks (no. days) | ||||||
Average Payables Payment Period, Competitors2 | ||||||
Airbnb Inc. | — | — | — | — | — | |
Booking Holdings Inc. | 30 | — | — | — | — | |
Carnival Corp. & plc | 21 | 24 | — | — | — | |
Chipotle Mexican Grill Inc. | 10 | — | — | — | — | |
McDonald’s Corp. | 46 | — | — | — | — | |
Starbucks Corp. | 23 | 25 | — | — | — | |
Average Payables Payment Period, Sector | ||||||
Consumer Services | 26 | — | — | — | — | |
Average Payables Payment Period, Industry | ||||||
Consumer Discretionary | 65 | — | — | — | — |
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
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 24.66 = 15
2 Click competitor name to see calculations.
Short-term activity ratio | Description | The company |
---|---|---|
Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. |