Marriott International (MAR) Financials

Marriott International (NASDAQ:MAR) has demonstrated solid financial performance and operational trends over the last four years, with data through Q2 2025. Here is a detailed summary of key financial observations from the income statements, cash flow statements, and balance sheets:

• Revenue Growth: Operating revenue has generally increased year-over-year from approximately $5.62 billion in Q1 2023 to about $6.74 billion by Q2 2025, indicating steady top-line growth.
• Increasing Net Income: Net income attributable to common shareholders grew substantially from around $564 million in Q1 2023 to $763 million in Q2 2025, reflecting improved profitability.
• Strong Operating Cash Flow: Net cash from continuing operating activities consistently remained robust around $650 million to $880 million each quarter, supporting operations and investments.
• Investment in Property, Plant & Equipment (PP&E): Marriott has maintained steady investments in PP&E, with quarterly purchases generally ranging between $90 million to $180 million, showing commitment to expanding and upgrading assets.
• Stable Dividend Payments: The company has steadily increased dividends per share from $0.40 in Q1 2023 to $0.67 by Q2 2025, signaling confidence in its cash flow generation and returning value to shareholders.
• Negative Total Common Equity: The balance sheet shows negative total common equity in recent quarters, around -$3 billion as of Q2 2025, driven by significant equity adjustments and treasury stock. This is important for investors to monitor but is not uncommon for companies with share buybacks.
• High Leverage Levels: Marriott carries significant long-term debt, increasing from approximately $10.3 billion in early 2023 to $14.5 billion by Q2 2025. While leverage increased, the company is actively managing debt with regular repayments.
• Goodwill and Intangible Assets: Considerable goodwill ($8.8-$9.0 billion) and intangible assets ($8.7-$9.8 billion) on the balance sheet suggest past acquisitions, which require ongoing assessment for impairment risks.
• Declining Total Equity and Shareholder’s Equity: Total equity remained negative with a worsening trend, reaching nearly -$3 billion by Q2 2025, caused by large other equity adjustments and persistent repurchases of common equity, which may concern some investors regarding book value.
• Consistent Share Repurchases: The company has spent significant cash on repurchasing common equity routinely, with quarterly outlays often exceeding $700 million. While this can support stock price, it also reduces liquidity and may affect financial flexibility.

Summary: Marriott International has shown consistent revenue and earnings growth supported by strong operating cash flow and steady investment in its business. The company rewards shareholders via dividends and buybacks, though its equity position remains negative due to treasury stock and equity adjustments. Leverage is high but actively managed through debt repayments. Investors should watch the equity position and debt levels alongside Marriott’s operational performance.