Analysis of Short-term (Operating) Activity Ratios
Quarterly Data
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Paying user area
Try for free
Marriott International Inc. pages available for free this week:
- Balance Sheet: Liabilities and Stockholders’ Equity
- Common-Size Income Statement
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Profitability Ratios
- Analysis of Liquidity Ratios
- Analysis of Solvency Ratios
- Enterprise Value to EBITDA (EV/EBITDA)
- Price to FCFE (P/FCFE)
- Dividend Discount Model (DDM)
- Aggregate Accruals
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to Marriott International Inc. for $22.49.
This is a one-time payment. There is no automatic renewal.
We accept:
Short-term Activity Ratios (Summary)
Marriott International Inc., short-term (operating) activity 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).
The analysis of the payables turnover ratio indicates variability over the periods from March 2015 to March 2020. Starting with a ratio of 20.85 in March 2015, there is a general upward trend observed through 2017, peaking at around 26.86 in September 2017. Subsequently, the ratio declines slightly and fluctuates, ending at 21.36 by March 2020. This pattern suggests fluctuations in the efficiency of the company’s management of payables, with periods of higher turnover potentially indicating faster payment cycles to suppliers and periods of decline possibly signaling slower payments.
Regarding the average payables payment period, the data reveals a corresponding trend with a decrease in days from 18 days in March 2015 down to a low of approximately 14 days during mid-2017, indicating faster payments to creditors during that time. After mid-2017, the days average generally increase again, reaching around 16-17 days in the years following, with occasional spikes such as 20 days in March 2019, before returning to 17 days by March 2020. This fluctuation supports the observed variations in the payables turnover ratio, reinforcing the interpretation of changing payment speeds over time.
No data is available for working capital turnover, thus preventing any analysis or interpretation for this metric over the time periods presented.
Turnover Ratios
Average No. Days
Payables Turnover
Marriott International Inc., payables turnover 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) | ||||||||||||||||||||||||||||
| Cost of revenues | ||||||||||||||||||||||||||||
| Accounts payable | ||||||||||||||||||||||||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||||||
| Payables turnover1 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Payables Turnover, Competitors2 | ||||||||||||||||||||||||||||
| 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), 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
Payables turnover
= (Cost of revenuesQ1 2020
+ Cost of revenuesQ4 2019
+ Cost of revenuesQ3 2019
+ Cost of revenuesQ2 2019)
÷ Accounts payable
= ( + + + )
÷ =
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several trends and changes over the periods from March 31, 2015, to March 31, 2020.
- Cost of Revenues
- The cost of revenues generally exhibited a rising trend from early 2015 through the end of 2019. Starting at approximately $2,992 million in March 2015, the cost increased gradually with some fluctuations, reaching a peak of about $4,704 million in December 2019. There was a notable jump between the fourth quarter of 2016 and onwards, where costs rose from around $3,346 million to $4,574 million within a year. This upward trajectory suggests increasing operational costs or expansion activities. However, as of March 31, 2020, a decline is observed with cost of revenues decreasing to $4,149 million from the prior quarter, indicating possible changes in business conditions or cost management.
- Accounts Payable
- Accounts payable showed moderate fluctuations throughout the period. Starting at $604 million in March 2015, the balances varied, increasing toward the fourth quarter of 2017 to a peak of $780 million, then somewhat stabilizing around the mid-$700 million range through 2018 and into early 2019. An anomalous spike is noted in June 2019, with payables rising sharply to $927 million, followed by a reduction in successive quarters, ending at $828 million in March 2020. These fluctuations may reflect varying supplier payment terms or changes in procurement activity.
- Payables Turnover Ratio
- The payables turnover ratio, indicating the frequency of payment to suppliers, began its tracked values in the second quarter of 2015 at about 20.85. This ratio fluctuated mildly but showed an increasing trend reaching 26.86 in September 2017, suggesting quicker payment cycles during this period. Thereafter, the ratio seesaws with values ranging mostly between 21 and 25 through 2018 and the first part of 2019. A significant drop to 18.66 occurs in December 2019, implying slower payments, before rising again toward 24.66 by September 2019 and settling at 21.36 in March 2020. This volatility in payables turnover ratio reflects varying management of payable terms and cash flow considerations.
In summary, the cost of revenues shows a general upward trend indicating expansion or increased operational costs, while accounts payable display fluctuating balances with a notable peak in mid-2019. The payables turnover ratio presents variability but within a moderate range, reflecting fluctuating payment cycles which may correspond with changes in the company's working capital management strategies over time.
Working Capital Turnover
Marriott International Inc., working capital turnover calculation (quarterly data)
| Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Current assets | ||||||||||||||||||||||||||||
| Less: Current liabilities | ||||||||||||||||||||||||||||
| Working capital | ||||||||||||||||||||||||||||
| Revenues | ||||||||||||||||||||||||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||||||
| Working capital turnover1 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Working Capital Turnover, 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), 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
Working capital turnover
= (RevenuesQ1 2020
+ RevenuesQ4 2019
+ RevenuesQ3 2019
+ RevenuesQ2 2019)
÷ Working capital
= ( + + + )
÷ =
2 Click competitor name to see calculations.
Over the observed quarters from March 2015 through March 2020, working capital exhibited a consistently negative trend, indicating that current liabilities exceeded current assets throughout the period. The working capital decreased from -$1,202 million in March 2015 to a low point of -$3,731 million in December 2018, reflecting an increasing deficit. Post this nadir, the working capital somewhat improved in 2019 but remained significantly negative, ending at -$2,467 million in March 2020.
Revenues demonstrated a general upward trajectory across the quarters, moving from approximately $3.5 billion in early 2015 to a peak reaching around $5.9 billion in December 2017. This growth trend was followed by fluctuations, with revenues declining somewhat in early 2018, then showing recovery phases in mid to late 2018 and maintaining relative stability through 2019. The figure at the end of the period (March 2020) showed a decrease to approximately $4.7 billion, a notable decline compared to the peaks experienced in prior years.
The data for working capital turnover was not provided, hence no analysis on this ratio can be made.
In summary, while revenues generally increased over the observed timeframe with some volatility and a decline in early 2020, working capital consistently remained negative and fluctuated widely, reflecting ongoing liquidity challenges or operational financing strategies affecting current assets and liabilities. The negative working capital magnitude suggests potential reliance on short-term liabilities to support operations, whereas revenue growth indicated potential expansion or increased business activity during most of the covered periods.
- Working Capital
- Consistently negative and fluctuating, indicating current liabilities significantly exceeding current assets. Deepened negative values peaked in late 2018 before partial improvement.
- Revenues
- Displayed overall growth from 2015 to 2017, reaching near $6 billion quarterly, followed by fluctuations and a decline by March 2020.
- Working Capital Turnover
- Data not available in the provided periods, restricting analysis of efficiency in using working capital to generate sales.
Average Payables Payment Period
Marriott International Inc., average payables payment period 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 | ||||||||||||||||||||||||||||
| Payables turnover | ||||||||||||||||||||||||||||
| Short-term Activity Ratio (no. days) | ||||||||||||||||||||||||||||
| Average payables payment period1 | ||||||||||||||||||||||||||||
| Benchmarks (no. days) | ||||||||||||||||||||||||||||
| Average Payables Payment Period, Competitors2 | ||||||||||||||||||||||||||||
| 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), 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
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ =
2 Click competitor name to see calculations.
- Payables Turnover Ratio
- The payables turnover ratio displays a generally fluctuating pattern over the observed period, starting from 20.85 in March 2015 and experiencing moderate variations throughout the subsequent quarters. Notably, the ratio increased steadily from 21.03 in March 2016 to a peak near 26.86 by September 2017, signaling more frequent payments to suppliers during this timeframe.
- Post-peak, the ratio exhibited a downward adjustment, descending to levels around 23 to 24 by the end of 2018. A decline is evident again approaching 2019, followed by somewhat volatile movement, concluding lower at approximately 21.36 by March 2020. This variability may reflect changes in payment policies or supplier relations impacting cash flow management.
- Average Payables Payment Period (days)
- The average payables payment period inversely mirrors the trend in payables turnover, with days fluctuating between 14 and 20 over the reported periods. Initially recorded at 18-19 days in early 2015, the period shortened to a low of around 14 days by late 2017, indicating quicker supplier payments during this time, possibly aligned with the peak in turnover ratio.
- Following 2017, the payment period displayed a slight lengthening trend, hovering around 15 to 17 days through 2018 and early 2019. A notable rise to 20 days occurred in September 2019, suggesting a temporary extension in supplier payment time, followed by a subsequent reduction to 15-17 days in the last reported quarters, signifying a return to faster payment cycles.
- Overall Analysis
- The data reveals a dynamic approach to managing payables, with periods of accelerated payments improving supplier relations or capital turnover, counterbalanced by instances of extended payment durations potentially aimed at optimizing working capital. The moderate fluctuations indicate responsiveness to external market conditions or internal financial strategies over the five-year span.