Accounting Question

• Create proforma income statements and balance sheets for the next year (use the spreadsheet from the Spirit Proforma Statement )
• Perform appropriate sensitivity analysis and alternate scenarios, by varying the growth rate in sales and working capital variables (Accounts Receivables, Inventory and Accounts Payable percentages).

Your analysis will include a comparison between the debt level from the base case (i) and those in the sensitivity/scenarios cases.

Rubric

Part 2

Marriot International
Pro forma financial statements
2020
2021
2022
2023
Assumed
Actual
Actual
Actual
Proforma
% of Sales
31.09%
5.93%
0.00%
3.87%
49.91%
24.41%
0.00%
3.75%
40.50%
15.17%
0.00%
3.88%
$29.186
23.742
1.696
Assumptions
Sales growth rate
Tax rate
Dividend payout rate
Interest rate
0.00%
4.03%
Jonathan Fleuridor
Hamza Lamkhatri
Carly Jacquez-Cortes
Mohammed Alamri
Michaela Davis
Joseph Porlles Arteaga
Income Statement ($ billions)
Sales
Cost of goods sold
SG&A expense
Other operating expenses
Depreciation expense
EBIT
$10.571
9.112
0.762
0.346
$0.351
$13.857
11.056
0.823
0.220
$1.758
$20.773
16.215
0.891
0.193
$3.474
Other Non operating expenses
Interest expense
Pre-tax income
$0.00
0.418
($0.067)
$0.00
0.392
$1.366
$0.00
0.377
$3.097
0.139
$3.046
Taxes
Net income
0.199
($0.266)
0.081
$1.285
0.756
$2.341
0.462
$2.584
Allocation of net income:
Dividends
Addition to retained earnings
$0.000
$0.000
$0.000
$0.000
$2.584
$0.877
1.768
0.180
$2.825
$1.393
1.982
0.251
$3.626
$0.507
2.571
0.235
$3.313
$2.023
4.223
0.452
2.402
0.888
2.459
0.874
$1.585
$19.43
5.014
1.437
$3.577
0.563
$3.184
2020
2021
2022
81.3%
5.8%
0.862
0.798
0.781
0.072
0.059
0.043
1.9%
0.033
0.016
0.009
6.9%
14.5%
1.5%
0.083
0.167
0.017
0.101
0.143
0.018
0.024
0.124
0.011
17.2% 0.2272
0.169806
0.118375
0.138
0.266
0.058
0.098
0.222
0.033
Balance Sheet ($ billions)
ASSETS
Current assets
Cash and marketable securities
Accounts receivable
Other current assets
Inventory
Total current assets
$6.697
Gross PPE
Accumulated depreciation
Net PPE
Other assets
$19.78
2.353
0.850
$1.503
$19.89
Total assets
$24.120
$25.022
$24.328
$10.274
LIABILITIES AND EQUITY
Current liabilities
Accounts payable & Accured Exps
Other current liabilities
Short-term debt
Total current liabilities
$1.358
$3.221
1.173
$5.752
$1.913
$3.689
0.805
$6.407
$2.045
$4.610
0.684
$7.339
$3.551
$7.713
1.965
$5.516
$14.91
1.607
$7.122
1.514
12.2%
26.4%
6.7%
0.128
0.305
0.111
Other liabilities
Long-term debt (PLUG)
Total liabilities
$15.07
9.203
$14.81
9.333
$24.27
$24.14
$14.87
9.380
$24.247
Shareholders’ equity
Paid-in capital
Retained earnings
Total shareholders’ equity
(8.776)
9.206
$0.430
(8.891)
10.305
$1.414
(11.774)
12.342
$0.568
(11.774)
14.926
$3.152
$24.701
$25.553
$24.815
$10.274
1.607
5%
0.824
15%
1.045
20%
1.155
25%
1.265
30% Sales Growth Rate
1.375 Long term debt
Accounts recievables
1.607
1%
(2.458)
2%
(2.156)
3%
(1.855)
4%
(1.553)
5% Account Recievables Percentage
(1.251) Long term debt
Accounts Payables
1.607
2%
4.675
4%
4.072
6%
3.468
8%
2.865
10% Accounts Payable Percentage
2.261 Long term debt
Total liabilities and shareholders’ equity
Sales
As the sales growth rate increases we can see long term debt increases.
Account recievables percentage, the long term debt increases.
Account payables percentage, the long term debt decreases.
Marriot International
Pro forma financial statements
2020
2021
2022
2023
Assumed
Actual
Actual
Actual
Proforma
% of Sales
31.09%
5.93%
0.00%
3.87%
49.91%
24.41%
0.00%
3.75%
7.00%
15.17%
0.00%
9.50%
$22.227
15.226
1.292
Assumptions
Sales growth rate
Tax rate
Dividend payout rate
Interest rate
0.00%
4.03%
Income Statement ($ billions)
Sales
Cost of goods sold
SG&A expense
Other operating expenses
Depreciation expense
EBIT
$10.571
9.112
0.762
0.346
$0.351
$13.857
11.056
0.823
0.220
$1.758
$20.773
16.215
0.891
0.193
$3.474
Other Non operating expenses
Interest expense
Pre-tax income
$0.00
0.418
($0.067)
$0.00
0.392
$1.366
$0.00
0.377
$3.097
(0.014)
$5.295
Taxes
Net income
0.199
($0.266)
0.081
$1.285
0.756
$2.341
0.803
$4.491
Allocation of net income:
Dividends
Addition to retained earnings
$0.000
$0.000
$0.000
$0.000
$4.491
$0.877
1.768
0.180
$2.825
$1.393
1.982
0.251
$3.626
$0.507
2.571
0.235
$3.313
$1.540
3.216
0.344
2.402
0.888
2.459
0.874
$1.585
$19.43
3.819
1.303
$2.516
0.429
$5.281
2020
2021
2022
68.5%
5.8%
0.862
0.798
0.781
0.072
0.059
0.043
1.9%
0.033
0.016
0.009
6.9%
14.5%
1.5%
0.083
0.167
0.017
0.101
0.143
0.018
0.024
0.124
0.011
Balance Sheet ($ billions)
ASSETS
Current assets
Cash and marketable securities
Accounts receivable
Other current assets
Inventory
Total current assets
$5.100
Gross PPE
Accumulated depreciation
Net PPE
Other assets
$19.78
2.353
0.850
$1.503
$19.89
Total assets
$24.120
$25.022
$24.328
$7.616
LIABILITIES AND EQUITY
Current liabilities
Accounts payable & Accured Exps
Other current liabilities
Short-term debt
Total current liabilities
$1.358
$3.221
1.173
$5.752
$1.913
$3.689
0.805
$6.407
$2.045
$4.610
0.684
$7.339
$2.704
$5.874
1.497
$4.201
(1.644)
$2.557
1.514
Other liabilities
Long-term debt (PLUG)
Total liabilities
$15.07
9.203
$14.81
9.333
$24.27
$24.14
$14.87
9.380
$24.247
Shareholders’ equity
Paid-in capital
Retained earnings
Total shareholders’ equity
(8.776)
9.206
$0.430
(8.891)
10.305
$1.414
(11.774)
12.342
$0.568
(11.774)
16.833
$5.059
$24.701
$25.553
$24.815
$7.616
Total liabilities and shareholders’ equity
17.2% 0.2272 0.1698059 0.1183748
12.2%
26.4%
6.7%
0.128
0.305
0.111
0.138
0.266
0.058
0.098
0.222
0.033
Marriot International
Pro forma financial statements
2020
2021
2022
2023
Assumed
Actual
Actual
Actual
Proforma
% of Sales
31.09%
5.93%
0.00%
3.87%
49.91%
24.41%
0.00%
3.75%
30.00%
15.17%
0.00%
3.88%
$27.005
21.968
2.025
Assumptions
Sales growth rate
Tax rate
Dividend payout rate
Interest rate
0.00%
4.03%
Income Statement ($ billions)
Sales
Cost of goods sold
SG&A expense
Other operating expenses
Depreciation expense
EBIT
$10.571
9.112
0.762
0.346
$0.351
$13.857
11.056
0.823
0.220
$1.758
$20.773
16.215
0.891
0.193
$3.474
Other Non operating expenses
Interest expense
Pre-tax income
$0.00
0.418
($0.067)
$0.00
0.392
$1.366
$0.00
0.377
$3.097
4.558
($2.068)
Taxes
Net income
0.199
($0.266)
0.081
$1.285
0.756
$2.341
(0.314)
($1.754)
Allocation of net income:
Dividends
Addition to retained earnings
$0.000
$0.000
$0.000
$0.000
($1.754)
$0.877
1.768
0.180
$2.825
$1.393
1.982
0.251
$3.626
$0.507
2.571
0.235
$3.313
$1.871
3.907
0.418
2.402
0.888
2.459
0.874
$1.585
$19.43
114.771
1.395
$113.376
0.521
$2.491
2020
2021
2022
81.3%
7.5%
0.862
0.798
0.781
0.072
0.059
0.043
1.9%
0.033
0.016
0.009
6.9%
14.5%
1.5%
0.083
0.167
0.017
0.101
0.143
0.018
0.024
0.124
0.011
Balance Sheet ($ billions)
ASSETS
Current assets
Cash and marketable securities
Accounts receivable
Other current assets
Inventory
Total current assets
$6.197
Gross PPE
Accumulated depreciation
Net PPE
Other assets
$19.78
2.353
0.850
$1.503
$19.89
Total assets
$24.120
$25.022
$24.328
$119.572
LIABILITIES AND EQUITY
Current liabilities
Accounts payable & Accured Exps
Other current liabilities
Short-term debt
Total current liabilities
$1.358
$3.221
1.173
$5.752
$1.913
$3.689
0.805
$6.407
$2.045
$4.610
0.684
$7.339
$3.285
$7.137
1.818
$5.103
115.655
$120.759
1.514
Other liabilities
Long-term debt (PLUG)
Total liabilities
$15.07
9.203
$14.81
9.333
$24.27
$24.14
$14.87
9.380
$24.247
Shareholders’ equity
Paid-in capital
Retained earnings
Total shareholders’ equity
(8.776)
9.206
$0.430
(8.891)
10.305
$1.414
(11.774)
12.342
$0.568
(11.774)
10.588
($1.186)
$24.701
$25.553
$24.815
$119.572
Total liabilities and shareholders’ equity
425.0% 0.2272 0.1698059 0.1183748
12.2%
26.4%
6.7%
0.128
0.305
0.111
0.138
0.266
0.058
0.098
0.222
0.033
Marriot International
Pro forma financial statements
2020
2021
2022
2023
Assumed
Actual
Actual
Actual
Proforma
% of Sales
31.09%
5.93%
0.00%
3.87%
49.91%
24.41%
0.00%
3.75%
40.50%
15.17%
0.00%
3.88%
$29.186
23.742
1.696
Assumptions
Sales growth rate
Tax rate
Dividend payout rate
Interest rate
0.00%
4.03%
Income Statement ($ billions)
Sales
Cost of goods sold
SG&A expense
Other operating expenses
Depreciation expense
EBIT
$10.571
9.112
0.762
0.346
$0.351
$13.857
11.056
0.823
0.220
$1.758
$20.773
16.215
0.891
0.193
$3.474
Other Non operating expenses
Interest expense
Pre-tax income
$0.00
0.418
($0.067)
$0.00
0.392
$1.366
$0.00
0.377
$3.097
0.139
$3.046
Taxes
Net income
0.199
($0.266)
0.081
$1.285
0.756
$2.341
0.462
$2.584
Allocation of net income:
Dividends
Addition to retained earnings
$0.000
$0.000
$0.000
$0.000
$2.584
$0.877
1.768
0.180
$2.825
$1.393
1.982
0.251
$3.626
$0.507
2.571
0.235
$3.313
$2.023
4.223
0.452
2.402
0.888
2.459
0.874
$1.585
$19.43
5.014
1.437
$3.577
0.563
$3.184
2020
2021
2022
81.3%
5.8%
0.862
0.798
0.781
0.072
0.059
0.043
1.9%
0.033
0.016
0.009
6.9%
14.5%
1.5%
0.083
0.167
0.017
0.101
0.143
0.018
0.024
0.124
0.011
Balance Sheet ($ billions)
ASSETS
Current assets
Cash and marketable securities
Accounts receivable
Other current assets
Inventory
Total current assets
$6.697
Gross PPE
Accumulated depreciation
Net PPE
Other assets
$19.78
2.353
0.850
$1.503
$19.89
Total assets
$24.120
$25.022
$24.328
$10.274
LIABILITIES AND EQUITY
Current liabilities
Accounts payable & Accured Exps
Other current liabilities
Short-term debt
Total current liabilities
$1.358
$3.221
1.173
$5.752
$1.913
$3.689
0.805
$6.407
$2.045
$4.610
0.684
$7.339
$3.551
$7.713
1.965
$5.516
1.607
$7.122
1.514
Other liabilities
Long-term debt (PLUG)
Total liabilities
$15.07
9.203
$14.81
9.333
$24.27
$24.14
$14.87
9.380
$24.247
Shareholders’ equity
Paid-in capital
Retained earnings
Total shareholders’ equity
(8.776)
9.206
$0.430
(8.891)
10.305
$1.414
(11.774)
12.342
$0.568
(11.774)
14.926
$3.152
$24.701
$25.553
$24.815
$10.274
Total liabilities and shareholders’ equity
17.2% 0.2272 0.1698059 0.1183748
12.2%
26.4%
6.7%
0.128
0.305
0.111
0.138
0.266
0.058
0.098
0.222
0.033
Marriot International
Pro forma financial statements
2020
2021
2022
2023
Assumed
Actual
Actual
Actual
Proforma
% of Sales
31.09%
5.93%
0.00%
3.87%
49.91%
24.41%
0.00%
3.75%
40.50%
15.17%
1408.00%
3.88%
$29.186
23.742
1.696
Assumptions
Sales growth rate
Tax rate
Dividend payout rate
Interest rate
0.00%
4.03%
Income Statement ($ billions)
Sales
Cost of goods sold
SG&A expense
Other operating expenses
Depreciation expense
EBIT
$10.571
9.112
0.762
0.346
$0.351
$13.857
11.056
0.823
0.220
$1.758
$20.773
16.215
0.891
0.193
$3.474
Other Non operating expenses
Interest expense
Pre-tax income
$0.00
0.418
($0.067)
$0.00
0.392
$1.366
$0.00
0.377
$3.097
1.125
$2.059
Taxes
Net income
0.199
($0.266)
0.081
$1.285
0.756
$2.341
0.312
$1.747
Allocation of net income:
Dividends
Addition to retained earnings
$0.000
$0.000
$0.000
$24.591
($22.845)
$0.877
1.768
0.180
$2.825
$1.393
1.982
0.251
$3.626
$0.507
2.571
0.235
$3.313
$2.023
4.223
0.452
2.402
0.888
2.459
0.874
$1.585
$19.43
5.014
1.437
$3.577
0.563
$3.184
2020
2021
2022
81.3%
5.8%
0.862
0.798
0.781
0.072
0.059
0.043
1.9%
0.033
0.016
0.009
6.9%
14.5%
1.5%
0.083
0.167
0.017
0.101
0.143
0.018
0.024
0.124
0.011
Balance Sheet ($ billions)
ASSETS
Current assets
Cash and marketable securities
Accounts receivable
Other current assets
Inventory
Total current assets
$6.697
Gross PPE
Accumulated depreciation
Net PPE
Other assets
$19.78
2.353
0.850
$1.503
$19.89
Total assets
$24.120
$25.022
$24.328
$10.274
LIABILITIES AND EQUITY
Current liabilities
Accounts payable & Accured Exps
Other current liabilities
Short-term debt
Total current liabilities
$1.358
$3.221
1.173
$5.752
$1.913
$3.689
0.805
$6.407
$2.045
$4.610
0.684
$7.339
$3.551
$7.713
1.965
$5.516
27.035
$32.551
1.514
Other liabilities
Long-term debt (PLUG)
Total liabilities
$15.07
9.203
$14.81
9.333
$24.27
$24.14
$14.87
9.380
$24.247
Shareholders’ equity
Paid-in capital
Retained earnings
Total shareholders’ equity
(8.776)
9.206
$0.430
(8.891)
10.305
$1.414
(11.774)
12.342
$0.568
(11.774)
(10.503)
($22.277)
$24.701
$25.553
$24.815
$10.274
Total liabilities and shareholders’ equity
17.2% 0.2272 0.1698059 0.1183748
12.2%
26.4%
6.7%
0.128
0.305
0.111
0.138
0.266
0.058
0.098
0.222
0.033
Marriot International
Pro forma financial statements
2020
2021
2022
2023
Assumed
Actual
Actual
Actual
Proforma
% of Sales
31.09%
5.93%
0.00%
3.87%
49.91%
24.41%
0.00%
3.75%
40.50%
15.17%
0.00%
3.88%
$29.186
23.742
1.696
Assumptions
Sales growth rate
Tax rate
Dividend payout rate
Interest rate
0.00%
4.03%
Income Statement ($ billions)
Sales
Cost of goods sold
SG&A expense
Other operating expenses
Depreciation expense
EBIT
$10.571
9.112
0.762
0.346
$0.351
$13.857
11.056
0.823
0.220
$1.758
$20.773
16.215
0.891
0.193
$3.474
Other Non operating expenses
Interest expense
Pre-tax income
$0.00
0.418
($0.067)
$0.00
0.392
$1.366
$0.00
0.377
$3.097
3.924
($0.740)
Taxes
Net income
0.199
($0.266)
0.081
$1.285
0.756
$2.341
(0.112)
($0.628)
Allocation of net income:
Dividends
Addition to retained earnings
$0.000
$0.000
$0.000
$0.000
($0.628)
$0.877
1.768
0.180
$2.825
$1.393
1.982
0.251
$3.626
$0.507
2.571
0.235
$3.313
$2.023
4.223
0.452
2.402
0.888
2.459
0.874
$1.585
$19.43
99.365
1.437
$97.927
0.563
$3.184
2020
2021
2022
81.3%
5.8%
0.862
0.798
0.781
0.072
0.059
0.043
1.9%
0.033
0.016
0.009
6.9%
14.5%
1.5%
0.083
0.167
0.017
0.101
0.143
0.018
0.024
0.124
0.011
Balance Sheet ($ billions)
ASSETS
Current assets
Cash and marketable securities
Accounts receivable
Other current assets
Inventory
Total current assets
$6.697
Gross PPE
Accumulated depreciation
Net PPE
Other assets
$19.78
2.353
0.850
$1.503
$19.89
Total assets
$24.120
$25.022
$24.328
$104.625
LIABILITIES AND EQUITY
Current liabilities
Accounts payable & Accured Exps
Other current liabilities
Short-term debt
Total current liabilities
$1.358
$3.221
1.173
$5.752
$1.913
$3.689
0.805
$6.407
$2.045
$4.610
0.684
$7.339
$3.551
$7.713
1.965
$5.516
99.169
$104.684
1.514
Other liabilities
Long-term debt (PLUG)
Total liabilities
$15.07
9.203
$14.81
9.333
$24.27
$24.14
$14.87
9.380
$24.247
Shareholders’ equity
Paid-in capital
Retained earnings
Total shareholders’ equity
(8.776)
9.206
$0.430
(8.891)
10.305
$1.414
(11.774)
12.342
$0.568
(11.774)
11.714
($0.060)
$24.701
$25.553
$24.815
$104.625
Total liabilities and shareholders’ equity
340.5% 0.2272 0.1698059 0.1183748
12.2%
26.4%
6.7%
0.128
0.305
0.111
0.138
0.266
0.058
0.098
0.222
0.033
Marriot International
Pro forma financial statements
2020
2021
2022
2023
Assumed
Actual
Actual
Actual
Proforma
% of Sales
31.09%
5.93%
0.00%
3.87%
49.91%
24.41%
0.00%
3.75%
40.50%
15.17%
0.00%
3.88%
Assumptions
Sales growth rate
Tax rate
Dividend payout rate
Interest rate
0.00%
4.03%
Income Statement ($ billions)
Sales
Cost of goods sold
SG&A expense
Other operating expenses
Depreciation expense
EBIT
$10.571
9.112
0.762
0.346
$0.351
$13.857
11.056
0.823
0.220
$1.758
$20.773
16.215
0.891
0.193
$3.474
$29.186
23.742
1.696
Other Non operating expenses
Interest expense
Pre-tax income
$0.00
0.418
($0.067)
$0.00
0.392
$1.366
$0.00
0.377
$3.097
$0.00
0.139
$3.046
Taxes
Net income
0.199
($0.266)
0.081
$1.285
0.756
$2.341
0.462
$2.584
Allocation of net income:
Dividends
Addition to retained earnings
$0.000
$0.000
$0.000
$0.000
$2.584
$0.877
1.768
0.180
$2.825
$1.393
1.982
0.251
$3.626
$0.507
2.571
0.235
$3.313
$2.023
4.223
0.452
2.402
0.888
2.459
0.874
$1.585
$19.43
5.014
1.437
$3.577
0.563
$3.184
2020
2021
2022
81.3%
5.8%
0.862
0.798
0.781
0.072
0.059
0.043
1.9%
0.033
0.016
0.009
6.9%
14.5%
1.5%
0.083
0.167
0.017
0.101
0.143
0.018
0.024
0.124
0.011
17.2% 0.2272
0.169806
0.118375
0.138
0.266
0.058
0.098
0.222
0.033
Balance Sheet ($ billions)
ASSETS
Current assets
Cash and marketable securities
Accounts receivable
Other current assets
Inventory
Total current assets
$6.697
Gross PPE
Accumulated depreciation
Net PPE
Other assets
$19.78
2.353
0.850
$1.503
$19.89
Total assets
$24.120
$25.022
$24.328
$10.274
LIABILITIES AND EQUITY
Current liabilities
Accounts payable & Accured Exps
Other current liabilities
Short-term debt
Total current liabilities
$1.358
$3.221
1.173
$5.752
$1.913
$3.689
0.805
$6.407
$2.045
$4.610
0.684
$7.339
$3.551
$7.713
1.965
$5.516
Other liabilities
Long-term debt (PLUG)
Total liabilities
$15.07
9.203
$14.81
9.333
$24.27
$24.14
$14.87
9.380
$24.247
1.607
$7.122
Shareholders’ equity
Paid-in capital
Retained earnings
Total shareholders’ equity
(8.776)
9.206
$0.430
(8.891)
10.305
$1.414
(11.774)
12.342
$0.568
(11.774)
14.926
$3.152
$24.701
$25.553
$24.815
$10.274
0.1
0.934
0.15
1.045
0.2
1.155
0.25
1.265
1.514
Total liabilities and shareholders’ equity
0.05
0.824
1.607
12.2%
26.4%
6.7%
0.3
1.375
Debt Level
1.600
Millions of Dollars
1.400
1.200
1.000
0.800
0.600
0.400
0.200
0.000
0
0.05
0.1
0.15
0.2
Sales/Growth Rate
0.25
0.3
0.35
0.128
0.305
0.111
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Marriott Vacations Worldwide Corp. (NYS: VAC)
Exchange rate used is that of the Year End reported date
Standardized Annual Balance Sheet
Report Date
Currency
Audit Status
12/31/2022
USD
Not Qualified
12/31/2021
USD
Not Qualified
Consolidated
Scale
Cash & Equivalents
Cash & Equivs & ST Investments
Receivables (ST)
Inventories
Current Tax Assets
Other Current Assets
Total Current Assets
Gross Property Plant & Equip
Accumulated Depreciation
Net Property Plant & Equip
Receivables (LT)
Intangible Assets
Other Assets
Total Assets
Accounts Payable & Accrued Exps
Accounts Payable
Accrued Expenses
Other Current Liabilities
Total Current Liabilities
LT Debt & Leases
Deferred LT Liabilities
Minority Interests
Other Liabilities
Total Liabilities
Common Share Capital
Additional Paid-In Capital
Retained Earnings
Accum Other Comprehensive Income
Treasury Stock
Other Equity
Total Equity
Total Liabilities & Equity
Yes
Thousands
524000
524000
256000
660000
36000
330000
1806000
1765000
626000
1139000
2198000
4028000
468000
9639000
976000
356000
620000
158000
1134000
5026000
675000
2000
306000
7143000
1000
3941000
593000
15000
2054000
0
2496000
9639000
Yes
Thousands
342000
342000
279000
719000
461000
1801000
1724000
588000
1136000
2045000
4143000
488000
9613000
811000
265000
546000
160000
971000
4487000
803000
10000
366000
6637000
1000
4072000
275000
-16000
1356000
0
2976000
9613000
12/31/2022
USD
Not Qualified
12/31/2021
USD
Not Qualified
Standardized Annual Income Statement
Report Date
Currency
Audit Status
Consolidated
Scale
Sales Revenue
Financing Revenue
Other Revenue
Total Revenue
Direct Costs
Gross Profit
Selling General & Admin
Depreciation & Amortization
Restruct Remediation & Impair
Other Operating Expense
Total Indirect Operating Costs
Operating Income
Interest Income
Other Non-Operating Income
Total Non-Operating Income
Earnings Before Tax
Taxation
Minority Interests
Extraordinary Items
Accounting Changes
Net Income
Preference Dividends & Similar
Net Income to Common
Average Shares Basic
EPS Net Basic
EPS Continuing Basic
Average Shares Diluted
EPS Net Diluted
EPS Continuing Diluted
Shares Outstanding
Yes
Thousands
2445000
293000
1918000
4656000
2113000
2543000
1500000
132000
2000
125000
1759000
784000
-118000
-84000
-202000
582000
191000
0
0
391000
0
391000
40400
9.69
9.69
45200
8.77
8.77
37481.082
Yes
Thousands
2008000
268000
1614000
3890000
1810000
2080000
1365000
146000
3000
116000
1630000
450000
-164000
-159000
-323000
127000
74000
4000
0
0
49000
0
49000
42500
1.15
1.15
43300
1.13
1.13
42283.378
12/31/2020
USD
Not Qualified
Yes
Thousands
524000
524000
276000
759000
468000
2027000
1252000
461000
791000
1840000
3769000
471000
8898000
715000
209000
506000
147000
862000
4268000
762000
31000
324000
6247000
1000
3760000
272000
-48000
1334000
0
2651000
8898000
12/31/2020
USD
Not Qualified
Yes
Thousands
1301000
267000
1318000
2886000
1620000
1266000
1015000
123000
187000
101000
1426000
-160000
-150000
-30000
-180000
-340000
-84000
19000
0
0
-275000
0
-275000
41300
-6.65
-6.65
41300
-6.65
-6.65
41094.248
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Marriott Vacations Worldwide Corp. (NYS: VAC)
Exchange rate used is that of the Year End reported date
Standardized Annual Balance Sheet
Report Date
Currency
Audit Status
12/31/2022
USD
Not Qualified
12/31/2021
USD
Not Qualified
Consolidated
Scale
Cash & Equivalents
Cash & Equivs & ST Investments
Receivables (ST)
Inventories
Current Tax Assets
Other Current Assets
Total Current Assets
Gross Property Plant & Equip
Accumulated Depreciation
Net Property Plant & Equip
Receivables (LT)
Intangible Assets
Other Assets
Total Assets
Accounts Payable & Accrued Exps
Accounts Payable
Accrued Expenses
Other Current Liabilities
Total Current Liabilities
LT Debt & Leases
Deferred LT Liabilities
Minority Interests
Other Liabilities
Total Liabilities
Common Share Capital
Additional Paid-In Capital
Retained Earnings
Accum Other Comprehensive Income
Treasury Stock
Other Equity
Total Equity
Total Liabilities & Equity
Yes
Thousands
524,000.00
524,000.00
256,000.00
660,000.00
36,000.00
330,000.00
1,806,000.00
1,765,000.00
626,000.00
1,139,000.00
2,198,000.00
4,028,000.00
468,000.00
9,639,000.00
976,000.00
356,000.00
620,000.00
158,000.00
1,134,000.00
5,026,000.00
675,000.00
2,000.00
306,000.00
7,143,000.00
1,000.00
3,941,000.00
593,000.00
15,000.00
2,054,000.00
2,496,000.00
9,639,000.00
Yes
Thousands
342,000.00
342,000.00
279,000.00
719,000.00
461,000.00
1,801,000.00
1,724,000.00
588,000.00
1,136,000.00
2,045,000.00
4,143,000.00
488,000.00
9,613,000.00
811,000.00
265,000.00
546,000.00
160,000.00
971,000.00
4,487,000.00
803,000.00
10,000.00
366,000.00
6,637,000.00
1,000.00
4,072,000.00
275,000.00
(16,000.00)
1,356,000.00
2,976,000.00
9,613,000.00
Standardized Annual Income Statement
Report Date
Currency
Audit Status
12/31/2022
USD
Not Qualified
12/31/2021
USD
Not Qualified
Consolidated
Scale
Sales Revenue
Financing Revenue
Other Revenue
Total Revenue
Direct Costs
Gross Profit
Selling General & Admin
Depreciation & Amortization
Restruct Remediation & Impair
Other Operating Expense
Total Indirect Operating Costs
Operating Income
Interest Expense
Other Non-Operating Income
Total Non-Operating Income
Earnings Before Tax
Taxation
Minority Interests
Net Income
Net Income to Common
Average Shares Basic
EPS Net Basic
EPS Continuing Basic
Average Shares Diluted
EPS Net Diluted
EPS Continuing Diluted
Shares Outstanding
Yes
Thousands
2,445,000.00
293,000.00
1,918,000.00
4,656,000.00
2,113,000.00
2,543,000.00
1,500,000.00
132,000.00
2,000.00
125,000.00
1,759,000.00
784,000.00
118,000.00
(84,000.00)
(202,000.00)
582,000.00
191,000.00
391,000.00
391,000.00
40,400.00
9.69
9.69
45,200.00
8.77
8.77
37,481.08
Yes
Thousands
2,008,000.00
268,000.00
1,614,000.00
3,890,000.00
1,810,000.00
2,080,000.00
1,365,000.00
146,000.00
3,000.00
116,000.00
1,630,000.00
450,000.00
164,000.00
(159,000.00)
(323,000.00)
127,000.00
74,000.00
4,000.00
49,000.00
49,000.00
42,500.00
1.15
1.15
43,300.00
1.13
1.13
42,283.38
12/31/2020
USD
Not Qualified
Yes
Thousands
524,000.00
524,000.00
276,000.00
759,000.00
468,000.00
2,027,000.00
1,252,000.00
461,000.00
791,000.00
1,840,000.00
3,769,000.00
471,000.00
8,898,000.00
715,000.00
209,000.00
506,000.00
147,000.00
862,000.00
4,268,000.00
762,000.00
31,000.00
324,000.00
6,247,000.00
1,000.00
3,760,000.00
272,000.00
(48,000.00)
1,334,000.00
2,651,000.00
8,898,000.00
12/31/2020
USD
Not Qualified
Yes
Thousands
1,301,000.00
267,000.00
1,318,000.00
2,886,000.00
1,620,000.00
1,266,000.00
1,015,000.00
123,000.00
187,000.00
101,000.00
1,426,000.00
(160,000.00)
150,000.00
(30,000.00)
(180,000.00)
(340,000.00)
(84,000.00)
19,000.00
(275,000.00)
(275,000.00)
41,300.00
(6.65)
(6.65)
41,300.00
(6.65)
(6.65)
41,094.25
Names:
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Marriott Vacations Worldwide Corp. (NYS: VAC)
Exchange rate used is that of the Year End reported date
Standardized Annual Balance Sheet
Report Date
Currency
Audit Status
12/31/2022
USD
Not Qualified
12/31/2021
USD
Not Qualified
Consolidated
Scale
Cash & Equivalents
Cash & Equivs & ST Investments
Receivables (ST)
Inventories
Current Tax Assets
Other Current Assets
Total Current Assets
Gross Property Plant & Equip
Accumulated Depreciation
Net Property Plant & Equip
Receivables (LT)
Intangible Assets
Other Assets
Total Assets
Accounts Payable & Accrued Exps
Accounts Payable
Accrued Expenses
Other Current Liabilities
Total Current Liabilities
LT Debt & Leases
Deferred LT Liabilities
Minority Interests
Other Liabilities
Total Liabilities
Common Share Capital
Additional Paid-In Capital
Retained Earnings
Accum Other Comprehensive Income
Treasury Stock
Other Equity
Total Equity
Total Liabilities & Equity
Yes
Thousands
524,000.00
524,000.00
256,000.00
660,000.00
36,000.00
330,000.00
1,806,000.00
1,765,000.00
626,000.00
1,139,000.00
2,198,000.00
4,028,000.00
468,000.00
9,639,000.00
976,000.00
356,000.00
620,000.00
158,000.00
1,134,000.00
5,026,000.00
675,000.00
2,000.00
306,000.00
7,143,000.00
1,000.00
3,941,000.00
593,000.00
15,000.00
2,054,000.00
2,496,000.00
9,639,000.00
Yes
Thousands
342,000.00
342,000.00
279,000.00
719,000.00
461,000.00
1,801,000.00
1,724,000.00
588,000.00
1,136,000.00
2,045,000.00
4,143,000.00
488,000.00
9,613,000.00
811,000.00
265,000.00
546,000.00
160,000.00
971,000.00
4,487,000.00
803,000.00
10,000.00
366,000.00
6,637,000.00
1,000.00
4,072,000.00
275,000.00
(16,000.00)
1,356,000.00
2,976,000.00
9,613,000.00
Standardized Annual Income Statement
Report Date
Currency
Audit Status
12/31/2022
USD
Not Qualified
12/31/2021
USD
Not Qualified
Consolidated
Scale
Sales Revenue
Financing Revenue
Other Revenue
Total Revenue
Direct Costs
Gross Profit
Selling General & Admin
Depreciation & Amortization
Restruct Remediation & Impair
Other Operating Expense
Total Indirect Operating Costs
Operating Income
Interest Expense
Other Non-Operating Income
Total Non-Operating Income
Earnings Before Tax
Taxation
Minority Interests
Net Income
Net Income to Common
Average Shares Basic
EPS Net Basic
EPS Continuing Basic
Average Shares Diluted
EPS Net Diluted
EPS Continuing Diluted
Shares Outstanding
Yes
Thousands
2,445,000.00
293,000.00
1,918,000.00
4,656,000.00
2,113,000.00
2,543,000.00
1,500,000.00
132,000.00
2,000.00
125,000.00
1,759,000.00
784,000.00
118,000.00
(84,000.00)
(202,000.00)
582,000.00
191,000.00
391,000.00
391,000.00
40,400.00
9.69
9.69
45,200.00
8.77
8.77
37,481.08
Yes
Thousands
2,008,000.00
268,000.00
1,614,000.00
3,890,000.00
1,810,000.00
2,080,000.00
1,365,000.00
146,000.00
3,000.00
116,000.00
1,630,000.00
450,000.00
164,000.00
(159,000.00)
(323,000.00)
127,000.00
74,000.00
4,000.00
49,000.00
49,000.00
42,500.00
1.15
1.15
43,300.00
1.13
1.13
42,283.38
15.7%
0.5
3.9
8.4%
1.6%
0.4
3.2
1.3%
Stage 1 Decomposition
Return on Equity (Net Income/Total Equity)
Total Asset Turnover (Sales/Total Assets)
Equity Multiplier (Total Assets/Total Equity)
Profit Margin (Net Income/Sales)
Total Asset turnover
$
0.48
$
0.40
Inventory turnover (Direct Costs/Inventory)
OR Days sales in Inventory (365/IT)
3.2
114.0
2.5
145.0
Accounts Receivable turnover (Credit Sales/Accounts Receiables)
OR Collection Period (365/ART)
Fixed Asset turnover (Sales/NPPE)
$
2.1
172.3
4.09
1.9
191.9
3.42
Equity Mulitpler
Debt to Equity (Total liability/total equity)
Debt to Asset (Total liability/Total Assets)
286%
74.1%
223%
69.0%
6.6
2.7
Times Interest Earned (Operating Income/Interest expense)
$
Liquidity (short term)
Current Ratio (Current Assets/Current Liabilities)
Acid test [(Current Assets – Inventory)/Current liabilities
Accounts Payable turnover (Direct Costs/Accounts Payable)
OR Payables Period (365/APT)
1.6
1.0
5.9
61.5
1.9
1.1
6.8
53.4
Cash Conversion Cycle CCC
Operating cycle =Collection Period + Days Sales in Inventory
CCC = operating cycle – Payables Period
286.3
224.8
336.9
283.4
Overall Performance
With regards to the ROE, Marriot VWW took a major hit in 2020 because of COVID which kept the sales too low for the costs th
company was facing. Therefore, incurring into a negative net income. As of 2021, they showed an upwards trend and managed
back to positive but it’s only in 2022 where you can see a big improvement, with overall revenues increasing more than150% tha
was in 2020 which resulted in the recovery after the major toll that COVID caused.
The Profit Margin went from a -9.5% in 2020 where their income was negative and the sales too low, to a 8.4% in 2022 where th
almost doubled in comparison to 2020. They were able to keep the costs relatively low while increasing the sales revenue expon
The TAT is slightly increasing over time which means that they are trying to effectively using their short term assets to generate
revenue/sales. Something that they could do to improve the asset turnover ratio is to focus on more inventory management and
strategy, reduce any short debts, and increase productivity.
Where Financial Leverage is concern, the Equity Multiplier is also relatively high which means that current shareholders own few
than the current creditors so they may be reluctant to advance further financing to the company. Additionally, EM and ROE have
relationship where an increase in EM will also lead to an increase in ROE. It is interesting to analyze that although they profit ma
improved, they liquidity (short term) has gotten worse which means they’ve been incurring in debt to pay their assets. Therefore,
associates to service costs such as interest and fees might hurt the company if they incurr in an unexpected event that might dr
sales down.
12/31/2020
USD
Not Qualified
Yes
Thousands
524,000.00
524,000.00
276,000.00
759,000.00
468,000.00
2,027,000.00
1,252,000.00
461,000.00
791,000.00
1,840,000.00
3,769,000.00
471,000.00
8,898,000.00
715,000.00
209,000.00
506,000.00
147,000.00
862,000.00
4,268,000.00
762,000.00
31,000.00
324,000.00
6,247,000.00
1,000.00
3,760,000.00
272,000.00
(48,000.00)
1,334,000.00
2,651,000.00
8,898,000.00
12/31/2020
USD
Not Qualified
Yes
Thousands
1,301,000.00
267,000.00
1,318,000.00
2,886,000.00
1,620,000.00
1,266,000.00
1,015,000.00
123,000.00
187,000.00
101,000.00
1,426,000.00
(160,000.00)
150,000.00
(30,000.00)
(180,000.00)
(340,000.00)
(84,000.00)
19,000.00
(275,000.00)
(275,000.00)
41,300.00
(6.65)
(6.65)
41,300.00
(6.65)
(6.65)
41,094.25
-10.4%
0.3
3.4
-9.5%
$
0.32
2.1
171.0
$
1.6
232.7
3.65
236%
70.2%
-1.1
2.4
1.5
7.8
47.1
403.7
356.6
e sales too low for the costs that the
upwards trend and managed to bring it
increasing more than150% than what it
ow, to a 8.4% in 2022 where their revenue
asing the sales revenue exponentially.
short term assets to generate
re inventory management and cost control
t current shareholders own fewer assets
dditionally, EM and ROE have a direct
ze that although they profit margin has
to pay their assets. Therefore, debt
nexpected event that might drive their