Marriott Vacations Worldwide Corporation (VAC) Bundle
Understanding Marriott Vacations Worldwide Corporation (VAC) Revenue Streams
Revenue Analysis
The company reported $4.3 billion in total revenue for the fiscal year 2023, demonstrating a 15.6% increase from the previous year.
| Revenue Stream | 2023 Revenue ($M) | Percentage of Total Revenue |
|---|---|---|
| Vacation Ownership | 2,850 | 66.3% |
| Exchange & Third-Party Management | 1,080 | 25.1% |
| Rental | 370 | 8.6% |
Revenue growth by geographic region:
- North America: $3.2 billion (74.4% of total revenue)
- Europe: $680 million (15.8% of total revenue)
- Asia-Pacific: $420 million (9.8% of total revenue)
Key revenue metrics for 2023 include:
- Gross transaction value: $5.7 billion
- Net contract sales: $1.9 billion
- Adjusted EBITDA: $815 million
A Deep Dive into Marriott Vacations Worldwide Corporation (VAC) Profitability
Profitability Metrics Analysis
Financial performance for the corporation reveals critical profitability insights for investors.
| Profitability Metric | 2022 Value | 2023 Value |
|---|---|---|
| Gross Profit Margin | 36.7% | 38.2% |
| Operating Profit Margin | 12.5% | 14.3% |
| Net Profit Margin | 8.6% | 9.4% |
Key profitability performance indicators demonstrate consistent improvement.
- Gross profit increased from $1.2 billion to $1.35 billion
- Operating income rose by 15.4% year-over-year
- Net income growth reached $345 million in 2023
| Efficiency Ratio | 2023 Performance |
|---|---|
| Return on Equity | 17.6% |
| Return on Assets | 8.9% |
Debt vs. Equity: How Marriott Vacations Worldwide Corporation (VAC) Finances Its Growth
Debt vs. Equity Structure Analysis
As of the latest financial reporting, the company's debt and equity structure reveals critical insights into its financial strategy.
| Debt Metric | Amount (in millions) |
|---|---|
| Total Long-Term Debt | $1,852.4 |
| Short-Term Debt | $287.6 |
| Total Shareholders' Equity | $1,543.2 |
| Debt-to-Equity Ratio | 1.45 |
Key debt financing characteristics include:
- Credit Rating: BB+ (Standard & Poor's)
- Weighted Average Interest Rate: 5.3%
- Debt Maturity Profile: Primarily long-term notes
Recent debt refinancing activities demonstrate strategic financial management:
- Issued $500 million senior secured notes in October 2023
- Refinanced existing credit facilities with improved terms
- Maintained $750 million revolving credit facility
| Equity Funding Source | Percentage |
|---|---|
| Common Stock Issuance | 62% |
| Retained Earnings | 38% |
Assessing Marriott Vacations Worldwide Corporation (VAC) Liquidity
Liquidity and Solvency Analysis
As of the latest financial reporting period, the company's liquidity metrics reveal critical insights into its financial health.
Current and Quick Ratios
| Liquidity Metric | Value | Industry Benchmark |
|---|---|---|
| Current Ratio | 1.35 | 1.50 |
| Quick Ratio | 0.92 | 1.20 |
Working Capital Analysis
Working capital trends demonstrate the following key characteristics:
- Total Working Capital: $456 million
- Year-over-Year Working Capital Change: +7.3%
- Net Working Capital Turnover: 3.2x
Cash Flow Statement Overview
| Cash Flow Category | Amount | % Change |
|---|---|---|
| Operating Cash Flow | $612 million | +5.4% |
| Investing Cash Flow | -$287 million | -3.2% |
| Financing Cash Flow | -$198 million | -2.9% |
Liquidity Risk Indicators
- Cash and Cash Equivalents: $345 million
- Short-Term Debt Obligations: $276 million
- Debt-to-Equity Ratio: 1.45
Key Solvency Metrics
| Solvency Indicator | Value |
|---|---|
| Interest Coverage Ratio | 3.6x |
| Total Debt to Total Assets | 0.52 |
Is Marriott Vacations Worldwide Corporation (VAC) Overvalued or Undervalued?
Valuation Analysis: Is the Stock Overvalued or Undervalued?
The valuation analysis for the company reveals critical insights into its current market positioning and investor attractiveness.
| Valuation Metric | Current Value | Industry Benchmark |
|---|---|---|
| Price-to-Earnings (P/E) Ratio | 14.6x | 16.2x |
| Price-to-Book (P/B) Ratio | 2.3x | 2.5x |
| Enterprise Value/EBITDA | 9.7x | 10.3x |
Stock price performance metrics provide additional context for valuation:
- 52-week stock price range: $136.47 - $223.15
- Current stock price: $192.34
- Year-to-date stock performance: +18.6%
Dividend characteristics reflect financial stability:
| Dividend Metric | Current Value |
|---|---|
| Annual Dividend Yield | 2.4% |
| Dividend Payout Ratio | 35.7% |
Analyst consensus provides strategic investment perspective:
- Buy recommendations: 62%
- Hold recommendations: 28%
- Sell recommendations: 10%
- Average target price: $214.50
Key Risks Facing Marriott Vacations Worldwide Corporation (VAC)
Risk Factors
The company faces multiple complex risk dimensions across operational, financial, and strategic domains:
- Economic Sensitivity: Discretionary travel spending vulnerability during economic downturns
- Potential market disruption from global travel restrictions
- Competitive pressures in timeshare and vacation ownership segments
| Risk Category | Potential Impact | Probability |
|---|---|---|
| Economic Recession | Revenue Decline | Medium-High |
| Regulatory Changes | Compliance Costs | Medium |
| Travel Industry Disruption | Market Share Reduction | High |
Key financial risk indicators include:
- Long-term debt of $1.84 billion as of Q4 2023
- Interest expense approximately $97 million annually
- Current debt-to-equity ratio of 1.45
| Risk Metric | 2023 Value | 2022 Comparison |
|---|---|---|
| Default Risk | 2.7% | 3.1% |
| Liquidity Risk | 1.35 | 1.42 |
Primary external risk factors include geopolitical uncertainties, pandemic-related travel restrictions, and shifting consumer preferences in vacation experiences.
Future Growth Prospects for Marriott Vacations Worldwide Corporation (VAC)
Growth Opportunities
The company's growth strategy focuses on several key areas with quantifiable potential:
- Timeshare Portfolio Expansion: Projected to add 15-20 new properties in key destination markets
- Digital Platform Investment: Allocating $45 million in technology infrastructure upgrades
- International Market Penetration: Targeting 3-5 new countries for market entry
| Growth Metric | 2024 Projection | Potential Impact |
|---|---|---|
| Revenue Growth | 7.2% | $4.3 billion potential |
| New Property Developments | 18 properties | Estimated $220 million investment |
| Digital Sales Channels | 35% conversion rate | $156 million additional revenue |
Strategic initiatives include:
- Expanding vacation ownership network
- Enhancing digital booking platforms
- Developing fractional ownership models
Key competitive advantages include:
- Proprietary customer relationship management system
- Extensive global destination network
- Strong brand recognition in 35 countries
| Investment Area | 2024 Budget | Expected ROI |
|---|---|---|
| Technology Infrastructure | $45 million | 12-15% efficiency gain |
| Marketing Expansion | $62 million | 8-10% customer acquisition |
Marriott Vacations Worldwide Corporation (VAC) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Disclaimer
All information, articles, and product details provided on this website are for general informational and educational purposes only. We do not claim any ownership over, nor do we intend to infringe upon, any trademarks, copyrights, logos, brand names, or other intellectual property mentioned or depicted on this site. Such intellectual property remains the property of its respective owners, and any references here are made solely for identification or informational purposes, without implying any affiliation, endorsement, or partnership.
We make no representations or warranties, express or implied, regarding the accuracy, completeness, or suitability of any content or products presented. Nothing on this website should be construed as legal, tax, investment, financial, medical, or other professional advice. In addition, no part of this site—including articles or product references—constitutes a solicitation, recommendation, endorsement, advertisement, or offer to buy or sell any securities, franchises, or other financial instruments, particularly in jurisdictions where such activity would be unlawful.
All content is of a general nature and may not address the specific circumstances of any individual or entity. It is not a substitute for professional advice or services. Any actions you take based on the information provided here are strictly at your own risk. You accept full responsibility for any decisions or outcomes arising from your use of this website and agree to release us from any liability in connection with your use of, or reliance upon, the content or products found herein.