Marriott Company Analysis

Marriott Company Analysis - Will Cliff - 903631044 Company...

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Will Cliff - 903631044 Company Analysis Marriott International Inc. (MAR) Summary of the Company Marriott International Inc is a global company that operates within the hospitality and lodging services industry. Its operations are organized into five business branches: North American Limited Service Lodging, North American Full Service Lodging, International Lodging, Luxury Lodging and Timeshares. The company was founded in 1927 by J.W. Marriott, whose son J.W. Marriott Jr. is now the CEO. The Marriott family owns approximately 21% of each of the business branches. Financial Ratio Analysis In terms of profitability ratios, 2010 was a far better year than 2009 for Marriott. This means that Marriott’s overall performance in terms of generating income was more successful in 2010 than in 2009. The Net Profit Margin in 2010 represented a solid turnaround from the poor ratio 2009 presented. The ratio increased from -3.17 in 2009 to 5.94 in 2010. This means that instead of losing approximately 3 cents for every dollar earned in revenue (2009), Marriott earned almost 6 cents of net profit for every dollar it earned in revenue. Essentially, Marriott was found a more successful way to turn revenue into profit in 2010. 2010 was also a better year for Marriott in terms of Gross Profit Margin. The ratio increased from 11.32% in 2009 to 12.62% in 2010. Essentially, what this ratio is saying is that Marriott had more revenue after deducting the cost of goods sold in 2010 than in 2009. This is a positive sign for Marriott. The Asset Turnover improved as well in 2010 as it increased from 1.30 in 2009 to 1.38 in 2010. This means that Marriott was more efficient at turning their assets into revenue in 2010
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This note was uploaded on 09/23/2011 for the course MANAGEMENT 1a taught by Professor Staff during the Spring '11 term at UCLA.

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Marriott Company Analysis - Will Cliff - 903631044 Company...

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