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.
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- Income Statement
- Statement of Comprehensive Income
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Common Stock Valuation Ratios
- Enterprise Value to FCFF (EV/FCFF)
- Price to FCFE (P/FCFE)
- Present Value of Free Cash Flow to Equity (FCFE)
- Selected Financial Data since 2005
- Analysis of Revenues
- Analysis of Debt
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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).
- Payables Turnover Ratio
- The payables turnover ratio shows a fluctuating trend over the observed periods. Starting at 21.08 in March 2016, it declined to a low of 19.56 in September 2016 before rising steadily through 2017, peaking at 26.86 in June 2017. It then demonstrates some volatility, dropping below 22 multiple times between 2018 and early 2019. A notable decrease is observed in the second quarter of 2019 at 18.66, which represents the lowest value in the available data, followed by a recovery to 24.66 in the last quarter of 2019. By March 2020, the ratio fell again to 21.36. Overall, the ratio reflects periods of increased efficiency in managing payables, particularly in 2017, but also times of slower turnover.
- Average Payables Payment Period (days)
- This metric generally displays an inverse relationship with the payables turnover ratio, as expected. The payment period begins at 17 days in March 2016, rising slightly to 19 days by September 2016, then declining to 14-15 days in much of 2017, aligning with the higher payables turnover seen during that period. From 2018 through early 2019, the payment period stabilizes around 15-16 days. However, there is a noticeable increase to 20 days in the second quarter of 2019, coinciding with the lowest payables turnover ratio, suggesting a temporary extension in the time taken to pay suppliers. The payment period then shortens again to 15-17 days towards the end of 2019 and into March 2020.
- Overall Observations
- The data indicates episodic variations in the company's management of payables, with 2017 representing a period of tighter payment conditions possibly intended to optimize cash flow. Fluctuations in 2019 point to inconsistent payment practices, with a transient lengthening of the payment period in the middle of the year. The absence of data for working capital turnover limits the ability to assess overall operational efficiency related to working capital. Nonetheless, the available metrics suggest the company maintains relatively consistent payables management within a range of approximately 14 to 20 days payment period, balancing supplier relations and cash flow considerations.
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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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).
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 in cost of revenues, accounts payable, and payables turnover ratios over the reported periods.
- Cost of Revenues
- The cost of revenues showed a general upward trend from early 2016 through late 2017, increasing from approximately $3.2 billion to nearly $4.9 billion. In 2018, the figures fluctuated but remained in the range of roughly $4.1 to $4.5 billion. Throughout 2019, the cost of revenues maintained relative stability, staying close to the $4.2-$4.7 billion mark. However, by March 2020, there was a noticeable decline to about $4.1 billion, indicating a potential reduction in operational activity or cost structure adjustments at the outset of that year.
- Accounts Payable
- Accounts payable values demonstrated modest increases from about $597 million in March 2016 to a peak near $927 million in June 2019. This highlights growing liabilities towards suppliers or operational expenses over the period. Following this peak, the accounts payable amounts decreased to $720 million in December 2019, but then rose again to $828 million by March 2020, suggesting fluctuations in short-term payables, possibly influenced by operational cycles or payment policies.
- Payables Turnover Ratio
- The payables turnover ratio experienced significant variation during the timeframe. It began around 21.08 in March 2016, declined slightly through 2016, then increased markedly during 2017, reaching over 26 by mid-year—a signal of faster payments to suppliers or improved efficiency in managing payables. In 2018, the ratio declined again, fluctuating between approximately 21.7 and 23.09, and then showed further variability in 2019, dropping to a low of just below 19 in mid-2019 before rebounding to about 24.66 at year-end. The ratio decreased again to approximately 21.36 in the first quarter of 2020, indicating that the company may have slowed its payments pace relative to purchases during that period.
Overall, the data suggest that while costs increased substantially from 2016 through 2017 and then stabilized, accounts payable grew generally but with notable short-term fluctuations. The payables turnover ratio shows cyclical patterns indicating varying payment speeds to creditors, reflecting operational adjustments or changing supplier terms over different quarters. The early 2020 data point hints at some initial impact on costs and payables management that could be associated with broader economic or operational challenges occurring at that time.
Working Capital Turnover
Marriott International Inc., working capital turnover calculation (quarterly data)
| Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ 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).
1 Q1 2020 Calculation
Working capital turnover
= (RevenuesQ1 2020
+ RevenuesQ4 2019
+ RevenuesQ3 2019
+ RevenuesQ2 2019)
÷ Working capital
= ( + + + )
÷ =
2 Click competitor name to see calculations.
- Working Capital
- The working capital displays a consistently negative value throughout the reported periods, indicating that current liabilities exceed current assets in each quarter. The magnitude of this negative working capital generally increases over time, reaching a low point in the December 2017 quarter at -3,263 million USD. Some fluctuations are present, such as slight improvements in the March 2019 and June 2019 quarters, but overall the trend remains towards deeper negative working capital levels. The most recent data point in March 2020 shows an improvement compared to the immediately preceding quarter but remains significantly negative at -2,467 million USD.
- Revenues
- Revenue figures demonstrate a degree of seasonality, typically increasing in the fourth quarter each year, which may correspond to holiday travel trends. From March 2016 through December 2017, revenues generally increased, peaking at 5,875 million USD in December 2017. A noticeable decline occurred in March 2018, with revenues dropping below previous peak levels, and subsequent quarters show fluctuations without a clear upward or downward long-term trend. In the quarters of 2019, revenues remain relatively stable, fluctuating around the 5,000 to 5,300 million USD range. However, the first quarter of 2020 shows a decline to 4,681 million USD, which could indicate emerging pressures on revenue generation.
- Working Capital Turnover
- No data is available for the working capital turnover ratio across the periods, precluding analysis of operational efficiency in utilizing working capital to generate revenues.
- Overall Analysis
- The persistent negative working capital suggests the company relies significantly on short-term liabilities, which could impact liquidity and operational flexibility. Despite this, the revenue streams appear relatively stable, with seasonal peaks but lacking strong growth in recent years. The decline in revenue in early 2020 may warrant further investigation, particularly in the context of external market conditions affecting the hospitality industry. The absence of data on working capital turnover limits a full assessment of how effectively the company is managing its working capital relative to its 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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).
1 Q1 2020 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ =
2 Click competitor name to see calculations.
- Payables Turnover
- The payables turnover ratio exhibits fluctuations over the analyzed periods. Initially, it ranges between approximately 19.56 and 21.08 in 2016, showing relative stability. There is a notable increase during 2017, peaking at 26.86 in the second quarter, indicating a higher efficiency in paying off suppliers. After this peak, the ratio decreases but remains elevated compared to 2016, oscillating mostly in the low to mid-20s range through to early 2020. The ratio dipped notably in the second quarter of 2019 to 18.66 but recovers thereafter. Overall, the trend suggests improved payables management during the middle years, followed by variability but maintenance of relatively improved turnover rates compared to the initial year.
- Average Payables Payment Period
- The average payables payment period inversely correlates with the payables turnover ratio, reflecting the number of days taken to pay suppliers. In 2016, the payment period generally averaged around 17 to 19 days, then shortened significantly in 2017 to 14-15 days coinciding with the peak in turnover ratio. From 2018 onward, the payment period stabilizes mostly within the 15 to 17 days range, except for a spike to 20 days in the second quarter of 2019. This variance suggests occasional extensions in payment terms during some quarters but generally reflects a sustained pattern of relatively prompt payments to suppliers compared to the earlier period.
- Summary of Observations
- Overall, the data indicate an operational improvement in accounts payable management during the period from 2016 to 2017, characterized by a higher payables turnover and a shorter average payment period. While some volatility appears in 2019, the company largely maintains improved payment schedules compared to 2016. These patterns could be interpreted as a strategic effort to optimize cash flow and supplier relationships by speeding up payments without extreme fluctuations. The modest decrease in turnover ratio and slight increase in payment period in some quarters warrant attention but do not fundamentally alter the positive trend exhibited over the multi-year span analyzed.