Over the past three months, shares of Marriott Intl Inc. (NASDAQ:MAR) moved higher by 7.88%. Before having a look at the importance of debt, let's look at how much debt Marriott Intl has.

Marriott Intl Debt

According to the Marriott Intl's most recent financial statement as reported on February 14, 2023, total debt is at $10.06 billion, with $9.38 billion in long-term debt and $684.00 million in current debt. Adjusting for $507.00 million in cash-equivalents, the company has a net debt of $9.56 billion.

Let's define some of the terms we used in the paragraph above. Current debt is the portion of a company's debt which is due within 1 year, while long-term debt is the portion due in more than 1 year. Cash equivalents includes cash and any liquid securities with maturity periods of 90 days or less. Total debt equals current debt plus long-term debt minus cash equivalents.

Why Debt Is Important

Debt is an important factor in the capital structure of a company, and can help it attain growth. Debt usually has a relatively lower financing cost than equity, which makes it an attractive option for executives.

However, interest-payment obligations can have an adverse impact on the cash-flow of the company. Equity owners can keep excess profit, generated from the debt capital, when companies use the debt capital for its business operations.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.