Cash conversion remains highly erratic, highlighted by a negative OCF/NI ratio of 31.00 in 2025Q3 and a massive $527 million working capital outflow during the same period.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 |
|---|
| Cash from Operations | 20M | 28M | 205M | 232M | 522M | 343M | 299M | 382M | 97M | 142M | 140.17M | 109.03M | 291M | 162M | 163M | 321M | 383M | 177M |
| Operating CF Margin % | - | 0.56% | 4.13% | 4.91% | 11.21% | 8.82% | 10.36% | 8.97% | 3.27% | 6.5% | 7.74% | 5.96% | 16.76% | 9.26% | 9.89% | 19.9% | 24.18% | 11.09% |
| Operating CF Growth % | -467.89% | -86.34% | -11.64% | -55.56% | 52.19% | 14.72% | -21.73% | 293.81% | -31.69% | 1.3% | 28.56% | -62.53% | 79.63% | -0.61% | -49.22% | -16.19% | 116.38% | - |
| Net Income | -342M | -308M | 217M | 254M | 391M | 53M | -256M | 142M | 55M | 235M | 137.35M | 122.8M | 81M | 79.73M | 7M | -172M | 67M | -521M |
| Depreciation & Amortization | 225M | 149M | 146M | 135M | 132M | 146M | 123M | 141M | 62M | 21.49M | 21M | 22.22M | 19M | 22.59M | 30M | 33M | 35M | 42M |
| Stock-Based Compensation | 66M | 38M | 33M | 31M | 39M | 51M | 36M | 37M | 35M | 16.29M | 14M | 14.14M | 13.38M | 12M | 12M | 11M | 0 | 0 |
| Deferred Taxes | -88M | -103M | 38M | -64M | 87M | 34M | -38M | 5M | 54M | -66.13M | 30M | 28.16M | 18.88M | 17.88M | -47M | -57M | 0 | 0 |
| Other Non-Cash Items | 995M | 802M | -57M | 275M | -268M | -170M | 450M | -144M | -164M | -155.65M | -80.18M | -6.68M | 62.76M | 95.8M | 91M | 419M | 230M | 726M |
| Working Capital Changes | -984M | -550M | -172M | -399M | 141M | 229M | -16M | 201M | 55M | 91M | 18M | -71.6M | 95.99M | -66M | 70M | 87M | 51M | -70M |
| Change in Receivables | -559M | -40M | -16M | -496M | 0 | 0 | 21M | 69M | -38M | 5.7M | 0 | 0 | 0 | 42M | 0 | 0 | 0 | 0 |
| Change in Inventory | 26M | 27M | -33M | 87M | 104M | 61M | 18M | 65M | 9M | 45M | 4.3M | 72.16M | 82M | 33.95M | 68M | 110M | 0 | 0 |
| Change in Payables | 8M | -5M | 9M | 1M | 112M | 42M | -146M | 17M | 26M | 50.75M | -18.7M | 0 | -11M | -16M | 21M | 48M | 6M | -77M |
| Cash from Investing | -52M | -70M | -115M | -112M | 16M | -213M | -32M | 37M | -1.41B | -38M | 34.18M | -25.07M | 43M | -35.91M | 3M | 9M | 21M | -27M |
| Capital Expenditures | -43M | -57M | 0 | -118M | -65M | -47M | -41M | -46M | -40M | -26M | -34.77M | -35.73M | -15M | -21.98M | -17M | -15M | -24M | -28M |
| CapEx % of Revenue | 0.93% | 1.13% | 1.15% | 2.5% | 1.4% | 1.21% | 1.42% | 1.08% | 1.35% | 1.19% | 1.92% | 1.95% | 0.86% | 1.26% | 1.03% | 0.93% | 1.52% | 1.75% |
| Acquisitions | 53M | 3M | 0 | 16M | 94M | -154M | 15M | 51M | -1.35B | 0 | 68.95M | 20.64M | 82M | 3M | 8M | 19M | 46M | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -62M | -16M | -115M | -10M | -13M | -12M | -6M | 32M | -14M | -12M | 0 | -9.98M | -24M | -16.93M | 12M | 5M | -1M | 1M |
| Cash from Financing | 273M | 241M | -132M | -401M | -486M | -317M | 23M | -331M | 1.43B | 171M | -204.95M | -249.75M | -185M | -28.27M | -172M | -246M | -410M | -144M |
| Debt Issued (Net) | 236M | 445M | 64M | 5M | 291M | -144M | 180M | 249M | 1.63B | 337M | 49.69M | -23.43M | 33.77M | 432K | -180M | -182M | -157M | -28M |
| Equity Issued (Net) | -25M | -61M | -56M | -298M | -724M | -78M | -82M | -465M | -96M | -88M | -217.83M | -201.38M | -203.6M | -30.77M | 0 | 0 | 0 | 0 |
| Dividends Paid | -110M | -110M | -107M | -106M | -99M | -23M | -45M | -81M | -51M | -38M | -34.2M | -23.79M | 0 | 0 | 0 | -64M | -264M | 0 |
| Share Repurchases | -25M | -61M | -56M | -286M | -701M | -78M | -82M | -465M | -96M | -88M | -182M | -201.38M | -203.6M | -25.63M | -4M | 0 | 0 | 0 |
| Other Financing | 172M | -33M | -33M | -2M | 46M | -72M | -30M | -34M | -52M | -40M | -2.62M | -1.15M | -15.17M | 2.07M | 8M | 0 | 11M | -116M |
| Net Change in Cash | 109M | 205M | -46M | -280M | 51M | -189M | 291M | 87M | 123M | 278M | -36M | -169.45M | 147M | 96.6M | -7M | 84M | -6M | 6M |
| Free Cash Flow | -23M | -29M | 148M | 114M | 457M | 296M | 258M | 336M | 57M | 116M | 105.4M | 73.3M | 276M | 140M | 146M | 306M | 359M | 149M |
| FCF Margin % | -0.5% | -0.58% | 2.98% | 2.41% | 9.82% | 7.61% | 8.94% | 7.89% | 1.92% | 5.31% | 5.82% | 4% | 15.9% | 8% | 8.86% | 18.97% | 22.66% | 9.34% |
| FCF Growth % | -114.84% | -119.59% | 29.82% | -75.05% | 54.39% | 14.73% | -23.21% | 489.47% | -50.86% | 10.05% | 43.8% | -73.44% | 97.14% | -4.11% | -52.29% | -14.76% | 140.94% | - |
| FCF per Share | -0.66 | -0.83 | 3.52 | 2.62 | 10.11 | 6.84 | 6.24 | 7.55 | 1.68 | 4.19 | 3.71 | 2.28 | 7.97 | 3.82 | 4.03 | 9.08 | 10.67 | 4.43 |
| FCF Conversion (FCF/Net Income) | 0.07x | -0.09x | 0.94x | 0.91x | 1.34x | 7.00x | -1.09x | 2.77x | 1.76x | 0.60x | 1.02x | 0.89x | 3.60x | 2.03x | 23.29x | -1.80x | 5.72x | -0.34x |
| Interest Paid | 183M | 237M | 247M | 204M | 149M | 184M | 176M | 167M | 55M | 22M | 23M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 139M | 143M | 133M | 141M | 57M | 13M | 32M | 53M | 41M | 49M | 48M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Cyclical Sales Velocity Volatility
According to reported financial statements, the relationship between net income and operating cash flow is highly erratic, evidenced by an OCF/NI ratio that swung from 2.37 in 2023Q4 to a negative 31.00 in 2025Q3, indicating significant non-cash distortions and accrual-based volatility within the business model.
The extreme divergence between accounting profits and cash generation suggests that reported net income is a poor proxy for the company's actual liquidity health. Investors should monitor the recurring impact of non-cash charges, which appear to decouple the firm's operational success from its ability to generate tangible cash inflows.
Based on recent quarterly filings, VAC's free cash flow trajectory has been inconsistent, with margins fluctuating from a positive 6.5% in 2024Q4 to a negative 5.5% in 2025Q2, reflecting the inherent difficulty in maintaining cash self-sufficiency amidst a volatile and capital-intensive sales environment.
The inability to sustain positive free cash flow suggests that the company's core operations may be struggling to cover both maintenance and growth requirements during periods of sales deceleration. This trend warrants further investigation into whether the current cost structure is fundamentally misaligned with the company's cyclical revenue profile.
As reported in recent financial disclosures, working capital movements have frequently acted as a significant drain on cash, highlighted by a massive $527 million outflow in 2025Q3, which suggests that inventory build-up or collection delays are aggressively consuming the company's available operating cash reserves.
The recurring negative working capital changes imply that the company is consistently tying up cash in its operations, likely due to the long-term nature of vacation ownership receivables and inventory development. This persistent cash absorption may limit management's flexibility to navigate cyclical downturns without relying on external financing.
Based on the provided data, Marriott Vacations Worldwide has continued to prioritize shareholder returns, including dividends and buybacks, even as operating cash flow has turned negative in multiple quarters, which may indicate a disconnect between current cash generation capabilities and the company's stated capital allocation strategy.
The decision to maintain dividend payments despite erratic cash flow performance appears to place additional strain on the balance sheet. Investors should monitor whether this commitment to capital returns remains sustainable if the current volatility in operating cash flow persists into future periods.
Quick answers to the most common questions about buying VAC stock.
Marriott Vacations Worldwide Corporation (VAC) generated $28.0M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Marriott Vacations Worldwide Corporation (VAC) reported negative free cash flow of $29.0M in 2025, indicating capital requirements exceeded cash from operations.
Marriott Vacations Worldwide Corporation (VAC) spent $57.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Marriott Vacations Worldwide Corporation (VAC) returned $110.0M to shareholders via cash dividends and spent $61.0M on share repurchases. This shows the company's commitment to returning capital to its equity investors.