Marriott International (Marriott International) Interest Coverage

: 4.75 (As of Dec. 2023)

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Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Marriott International's Operating Income for the three months ended in Dec. 2023 was $726 Mil. Marriott International's Interest Expense for the three months ended in Dec. 2023 was $-153 Mil. Marriott International's interest coverage for the quarter that ended in Dec. 2023 was 4.75. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Marriott International's Interest Coverage or its related term are showing as below:

MAR' s Interest Coverage Range Over the Past 10 Years
Min: 0.79 Med: 7.58 Max: 10.08
Current: 6.93

MAR's Interest Coverage is ranked better than
54.62% of 606 companies
in the Travel & Leisure industry
Industry Median: 5.08 vs MAR: 6.93

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Marriott International Interest Coverage Historical Data

The historical data trend for Marriott International's Interest Coverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

* Premium members only.

Marriott International Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

4.92

0.79

4.19

8.62

6.95

Marriott International Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage																8.67	7.56	8.04	7.62	4.75

Competitive Comparison

For the Lodging subindustry, Marriott International's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Marriott International Interest Coverage Distribution

For the Travel & Leisure industry and Consumer Cyclical sector, Marriott International's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Marriott International's Interest Coverage falls into.

Marriott International Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage

-1

Operating Income

Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt ⁽¹⁾.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Marriott International's Interest Coverage for the fiscal year that ended in Dec. 2023 is calculated as

Here, for the fiscal year that ended in Dec. 2023, Marriott International's Interest Expense was $-565 Mil. Its Operating Income was $3,924 Mil. And its Long-Term Debt & Capital Lease Obligation was $12,207 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	3924	/	-565
	=	6.95

Marriott International's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Marriott International's Interest Expense was $-153 Mil. Its Operating Income was $726 Mil. And its Long-Term Debt & Capital Lease Obligation was $12,207 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	726	/	-153
	=	4.75

The higher the ratio, the stronger the company's Financial Strength is.

Marriott International (NAS:MAR) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

Marriott International Interest Coverage Related Terms

Thank you for viewing the detailed overview of Marriott International's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.

Marriott International (Marriott International) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Travel & Leisure » Marriott International Inc (NAS:MAR) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

MAR:Mexico 1MAR:Italy MAQ:Germany MAQ:Germany M1TT34:Brazil MAR:Austria

Address

7750 Wisconsin Avenue, Bethesda, MD, USA, 20814

Website

https://www.marriott.com

Marriott operates 1.6 million rooms across roughly 30 brands. At the end of 2022, luxury represented roughly 10% of total rooms, while full service and limited service were about 40% and 50%, respectively. Marriott, Courtyard, and Sheraton are the largest brands, while Autograph, Tribute, Moxy, Aloft, and Element are newer lifestyle brands. Managed and franchised represent 99% of total rooms as of Sept. 30, 2023. North America makes up two thirds of total rooms. Managed, franchise, and incentive fees represent the vast majority of revenue and profitability for the company.

Executives

Anthony Capuano	officer: EVP - Lodging Development	10400 FERNWOOD ROAD, BETHESDA MD 20817
Felitia Lee	officer: Controller and CAO	10400 FERNWOOD ROAD, BETHESDA MD 20817
Rajeev Menon	officer: President, APEC	7750 WISCONSIN AVE, BETHESDA MD 20814-3522
Deborah Marriott Harrison	other: 13D group owning more than 10%	10400 FERNWOOD ROAD, BETHESDA MD 20817
Kathleen K. Oberg	officer: CFO	10400 FERNWOOD ROAD, BETHESDA MD 20817
Juliana B. Marriott	other: 13D Group owning more than 10%	10400 FERNWOOD ROAD, BETHESDA MD 20817
Juliana B. Marriott Marital Trust	other: Member of a 10% Group	6106 MACARTHER BOULEVARD, SUITE 110, BETHESDA MD 20816
David S Marriott	other: 13D group owning more than 10%	10400 FERNWOOD ROAD, BETHESDA MD 20817
Peggy Fang Roe	officer: EVP & Chf. Customer Officer	100 COMMERCE LANE, APT. 1401, BETHESDA MD 20814
Rena Hozore Reiss	officer: EVP & General Counsel	71 SOUTH WACKER DRIVE, 12TH FLOOR, CHICAGO IL 60606
Drew Pinto	officer: EVP, Chf. Rev & Technology	7750 WISCONSIN AVE, BETHESDA MD 20814-3522
William P Brown	officer: Pres. & Managing Dir., Europe	10400 FERNWOOD ROAD, BETHESDA MD 20817
Benjamin T. Breland	officer: EVP & Chief HR Officer	10400 FERNWOOD ROAD, BETHESDA MD 20817
Eric Hippeau	director	STARWOOD HOTELS & RESORTS WORLDWIDE, 44 SOUTH BROADWAY, WHITE PLAINS NY 10601
Grant Reid	director	7750 WISCONSIN AVE, BETHESDA MD 20814-3522