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Marriott International Interest Coverage

: 10.00 (As of Jun. 2022)
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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 Jun. 2022 was $950 Mil. Marriott International's Interest Expense for the three months ended in Jun. 2022 was $-95 Mil. Marriott International's interest coverage for the quarter that ended in Jun. 2022 was 10.00. 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: 6.89


MAR's Interest Coverage is ranked better than
51.19% of 463 companies
in the Travel & Leisure industry
Industry Median: 6.69 vs MAR: 6.89

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.

* Premium members only.

Marriott International Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Interest Coverage
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 9.25 7.41 4.92 0.79 4.19

Marriott International Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
Interest Coverage Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4.49 5.13 6.55 6.10 10.00

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.


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. 2021 is calculated as

Here, for the fiscal year that ended in Dec. 2021, Marriott International's Interest Expense was $-420 Mil. Its Operating Income was $1,758 Mil. And its Long-Term Debt & Capital Lease Obligation was $10,431 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2021 )/Interest Expense (A: Dec. 2021 )
=-1*1758/-420
=4.19

Marriott International's Interest Coverage for the quarter that ended in Jun. 2022 is calculated as

Here, for the three months ended in Jun. 2022, Marriott International's Interest Expense was $-95 Mil. Its Operating Income was $950 Mil. And its Long-Term Debt & Capital Lease Obligation was $9,278 Mil.

Interest Coverage=-1* Operating Income (Q: Jun. 2022 )/Interest Expense (Q: Jun. 2022 )
=-1*950/-95
=10.00

* 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.

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 Business Description

Marriott International logo
Address
10400 Fernwood Road, Bethesda, MD, USA, 20817
Marriott operates nearly 1.5 million rooms across roughly 30 brands. Luxury represents 10% of total rooms, while full service, limited service, and time-shares are 43%, 46%, and 2% of all units, respectively. Marriott, Courtyard, and Sheraton are the largest brands, while Autograph, Tribute, Moxy, Aloft, and Element are newer lifestyle brands. Managed and franchised represent 97% of total rooms. 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
Goren Isabella D director C/O LYONDELLBASELL INDUSTRIES N V DELFTSEPLEIN 27E ROTTERDAM P7 3013AA
Breland Benjamin T. officer: EVP & Chief HR Officer 10400 FERNWOOD ROAD BETHESDA MD 20817
Rozanski Horacio director 8283 GREENSBORO DRIVE MCLEAN VA 22102
Lee Felitia officer: Controller and CAO 10400 FERNWOOD ROAD BETHESDA MD 20817
Mccarthy Margaret M director AETNA INC. 151 FARMINGTON AVENUE HARTFORD CT 06156
Brown William P officer: Pres. & Managing Dir., Europe 10400 FERNWOOD ROAD BETHESDA MD 20817
Reiss Rena Hozore officer: EVP & General Counsel 71 SOUTH WACKER DRIVE 12TH FLOOR CHICAGO IL 60606
Duncan Bruce W director ONE NORTH WACKER DRIVE SUITE 4200 CHICAGO IL 60606
Hippeau Eric director STARWOOD HOTELS & RESORTS WORLDWIDE 44 SOUTH BROADWAY WHITE PLAINS NY 10601
Lewis Aylwin B director 111 N. CANAL SUITE 850 CHICAGO IL 60606
Oberg Kathleen K. officer: CFO 10400 FERNWOOD ROAD BETHESDA MD 20817
Smith Craig S. officer: Pres. Mgn. Dir. Asia Pacific 10400 FERNWOOD ROAD BETHESDA MD 20817
Schwab Susan C director 2101 VAN MUNCHING HALL COLLEGE PARK MD 20742
Juliana B. Marriott Marital Trust other: Member of a 10% Group 6106 MACARTHER BOULEVARD SUITE 110 BETHESDA MD 20816
Bauduin Val officer: Controller & CAO 10400 FERNWOOD ROAD BETHESDA MD 20817

Marriott International Headlines

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