Marriott International (MAR) Financials

Marriott International (NASDAQ: MAR) has demonstrated a generally positive financial trend over the last several years based on the analyzed quarterly financial data from 2022 through mid-2025.

Key positives include:

• Consistent growth in Operating Revenue from $5.6 billion in Q1 2023 to $6.74 billion in Q2 2025, reflecting robust business expansion and pricing power.
• Rising Consolidated Net Income from $564 million in Q1 2023 to $763 million in Q2 2025, indicating improved profitability.
• Operating Income has improved over the quarters, with Q2 2025 showing $1.24 billion, up from $876 million in Q1 2023, suggesting improved operational efficiency.
• Positive cash flows from operating activities, growing from $779 million in Q1 2023 to $643 million in Q2 2025, supporting the company’s working capital needs and investments.
• Increasing depreciation expense over time indicates ongoing investments in property and equipment, supporting long-term asset base growth.
• Steady dividend payments with increasing Dividend per Share from $0.40 in Q1 2023 to $0.67 in Q2 2025, appealing for income-focused investors.
• Share repurchases have been significant and consistent, with $749 million in Q2 2025 repurchased, helping to enhance shareholder value and earnings per share.
• Strong gross profit margins maintained around $1.5 billion in recent quarters, supportive of sustainable earnings quality.
• Net Cash Increase in Cash and Equivalents in recent quarters, such as $146 million in Q2 2025, indicating growing liquidity.

Neutral observations:

• Marriott’s total liabilities have steadily increased, reaching approximately $30.3 billion in Q2 2025, reflecting increased debt and deferred revenue but also growth-related obligations.
• Negative total common equity reported, around -$2.96 billion in Q2 2025; however, this stems from large equity adjustments and treasury stock, which requires monitoring but doesn’t necessarily impair operational performance.
• Depreciation and amortization expenses have modestly risen, consistent with asset growth but may weigh on short-term earnings.

Potential concerns or negatives:

• Substantial repayment of debt ($579 million in Q2 2025) and large debt balances ($14.5 billion long-term in Q2 2025) suggest high leverage, which might pose risks should interest rates rise or operating conditions deteriorate.
• Negative net cash from financing activities, around -$354 million in Q2 2025, mostly due to debt repayment and equity repurchases, could limit financial flexibility if sustained.
• Operating costs remain high, consuming a significant portion of revenue (e.g., operating cost of $5.2 billion against revenue of $6.74 billion in Q2 2025), which could pressure margins if costs are not well managed.
• Large negative values in Other Equity Adjustments (about -$26 billion in Q2 2025), which may impact shareholders' equity perception and accounting transparency.

Summary: Marriott International has experienced solid revenue growth, improving profitability, and strong operating cash flows over the last several years, which support continued expansion and shareholder returns. However, investors should keep an eye on the company's leverage levels and the high operating costs as potential risk factors. The company's ongoing share repurchases and dividend increases reflect confidence in its financial health.