Analysis Of Marriott International, Inc.
Marriott International, Inc. is a widely recognized and diversified global lodging firm which engages in the franchise and operation of hotels, timeshare properties, and housing properties. It operates through the following business segments: North American Limited-Service; North American Full-Service; and International. The firm operates hotels the management model, franchise model, and the leased and owned model. The company operates 16 brands that cover full-service, extended-stay hotels, and select-service.
The company has ensured a high level of customer satisfaction. Repeat business and brand loyalty are critical for the survival, profitability, and continuity of any business. Marriott International has been able to attain a high customer …show more content…
The basic ratios used in this analysis include profitability ratios, gearing ratios, and Equity ratios.
Liquidity ratios are used to gauge the ability of an organization to meet its short-term obligations as they fall due (Fridson & Alvarez, 2011). Profitability ratios measure the return on the enterprise regarding profits. Most organizations operate on funds contributed by the investors and lenders; therefore, they expect maximum return. Leverage ratios ascertain the relationship between the total debt of the firm and shareholders’ equity; it shows the enterprise capacity to use its assets and capital efficiently (Subramanyam & Wild, 2009). Lower gearing ratio shows that the company is reliant on equity financing, while a higher ratio shows that the organization is highly dependent on long-term borrowing. The debt ratio analyzes the solvency position of the organization because it shows the proportion of total liabilities to the total assets of the company. A firm with high leverage level finds it difficult to access the credit facilities. Equity ratios measure the level of investment in the …show more content…
is ideal for investment due to the robust business activities as compared to its peers. The company has excellent investment policies hence making it stand out from the other firms in hotel industry.
In 2017 the market price per share of the company’s stock has improved tremendously from $82.68 in 2016 to $126.6 in 2017 which represents a positive deviation of 53.12%. This trend is encouraging to both the existing and prospective investors. In 2015, the market price dropped to 67.04 representing a negative deviation of 14.08%. The share prices are stable despite the variations hence a motivation to the investors.
The firm’s common stock value continuously increased in the previous four years. The investors may purchase and hold on the corporation’s shares for an extended period to achieve higher returns at a significantly lower risk (Maclean, Ziemba & Blazenko, 2011).
From the analysis of the financial performance of Marriot International Inc., I recommend investing in the firm since the rate of return favorable. The current common stock prices and general market value of the company give an assurance of the shareholders’ wealth maximization. Moreover, long-term stake in the organization is recommended for higher returns at low
The company has ensured a high level of customer satisfaction. Repeat business and brand loyalty are critical for the survival, profitability, and continuity of any business. Marriott International has been able to attain a high customer …show more content…
The basic ratios used in this analysis include profitability ratios, gearing ratios, and Equity ratios.
Liquidity ratios are used to gauge the ability of an organization to meet its short-term obligations as they fall due (Fridson & Alvarez, 2011). Profitability ratios measure the return on the enterprise regarding profits. Most organizations operate on funds contributed by the investors and lenders; therefore, they expect maximum return. Leverage ratios ascertain the relationship between the total debt of the firm and shareholders’ equity; it shows the enterprise capacity to use its assets and capital efficiently (Subramanyam & Wild, 2009). Lower gearing ratio shows that the company is reliant on equity financing, while a higher ratio shows that the organization is highly dependent on long-term borrowing. The debt ratio analyzes the solvency position of the organization because it shows the proportion of total liabilities to the total assets of the company. A firm with high leverage level finds it difficult to access the credit facilities. Equity ratios measure the level of investment in the …show more content…
is ideal for investment due to the robust business activities as compared to its peers. The company has excellent investment policies hence making it stand out from the other firms in hotel industry.
In 2017 the market price per share of the company’s stock has improved tremendously from $82.68 in 2016 to $126.6 in 2017 which represents a positive deviation of 53.12%. This trend is encouraging to both the existing and prospective investors. In 2015, the market price dropped to 67.04 representing a negative deviation of 14.08%. The share prices are stable despite the variations hence a motivation to the investors.
The firm’s common stock value continuously increased in the previous four years. The investors may purchase and hold on the corporation’s shares for an extended period to achieve higher returns at a significantly lower risk (Maclean, Ziemba & Blazenko, 2011).
From the analysis of the financial performance of Marriot International Inc., I recommend investing in the firm since the rate of return favorable. The current common stock prices and general market value of the company give an assurance of the shareholders’ wealth maximization. Moreover, long-term stake in the organization is recommended for higher returns at low