Investment Thesis
Marriott demonstrates solid operational profitability with 15.8% operating margins and strong cash generation (2.6B free cash flow), supported by 9.5% net income growth. However, the negative stockholders' equity of -3.8B represents a critical structural weakness, indicating the company is heavily leveraged with liabilities exceeding assets, which poses significant financial distress risk despite adequate interest coverage.
MAR Strengths
- Strong revenue growth of 4.3% YoY with accelerating net income growth of 9.5% YoY, indicating operational leverage
- Robust free cash flow generation of 2.6B (10% FCF margin) exceeding capital requirements, supporting debt service
- Solid operating margins of 15.8% and net margins of 9.9% demonstrate pricing power and operational efficiency
- Excellent interest coverage ratio of 25.4x indicates strong ability to service debt obligations
MAR Risks
- Negative stockholders' equity of -3.8B represents technically insolvent balance sheet structure with liabilities far exceeding assets
- Severely constrained liquidity with current ratio of 0.43x, indicating potential difficulty meeting short-term obligations
- Heavy reliance on debt financing with long-term debt of 23.0B (understated due to data limitations) relative to negative equity base
- Business model vulnerability to economic downturns and travel disruptions given cyclical hospitality sector exposure
Key Metrics to Watch
- Stockholders' equity trend and debt reduction progress toward positive equity base
- Operating cash flow sustainability relative to capital expenditure and debt service obligations
- Current ratio improvement and working capital management to address liquidity constraints
- Operating margin stability during economic slowdown scenarios
MAR Financial Metrics
MAR Profitability Ratios
MAR Balance Sheet & Liquidity
MAR 5-Year Financial Trend
5-Year Trend Summary: MARRIOTT INTERNATIONAL INC /MD/'s revenue has grown significantly by 25% over the 5-year period, indicating strong business expansion. The most recent EPS of $10.18 reflects profitable operations.
MAR Growth Metrics (YoY)
MAR Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $6.3B | $564.0M | $2.07 |
| Q2 2025 | $6.4B | $564.0M | $2.69 |
| Q1 2025 | $6.0B | $564.0M | $1.93 |
| Q3 2024 | $5.9B | $564.0M | $2.07 |
| Q2 2024 | $6.1B | $564.0M | $2.38 |
| Q1 2024 | $5.6B | $564.0M | $1.93 |
| Q3 2023 | $5.3B | $377.0M | $1.94 |
| Q2 2023 | $5.3B | $377.0M | $2.06 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
MAR Capital Allocation
MAR SEC Filings
Access official SEC EDGAR filings for MARRIOTT INTERNATIONAL INC /MD/ (CIK: 0001048286)