Marriott International, Inc., and Hyatt Hotels Corporation are two major owners and managers of lodging and resort properties in the United States. Abstracted income statement information for the two companies is as follows for a recent year:

Balance sheet information is as follows:

The average liabilities, average stockholders’ equity, and average total assets were as follows:

1. Determine the following ratios for both companies (round to one decimal place after the whole percent):
a. Rate earned on total assets
b. Rate earned on stockholders’ equity
c. Number of times interest charges are earned
d. Ratio of liabilities to stockholders’ equity
2. Analyze and compare the two companies, using the information in(1).

Transcribed Image Text:

Hyatt in millions 39 118 (54) $103 37 S 66 Marriott (in millions) Operating profit before other expenses and interest 677 Other income (expenses) Interest expense Income before income Income tax expense Net income 54 (180) 551 93 458 Hyatt Total liabilities Total stockholders'equity Total liabilities and stockholders' equity Marriott (in millions) $7,398 1585 $8,983 (in millions) $2,125 5,118 Average total liabilities Average total stockholders' equity Average total assets Marriott (in millions) $7,095 1,364 8,458 Hyatt (in millions) $2,132 5,067 7.199