Hilton Worldwide Holdings, Inc. (HLT) and Marriott International, Inc. (MAR) are two of the largest hotel operators

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Hilton Worldwide Holdings, Inc. (HLT) and Marriott International, Inc. (MAR) are two of the largest hotel operators in the world. Selected financial information from recent income statements for both companies follows (in millions):

Hilton $1,861 (587) (19) $1,255 (891) $ 364 Marriott Operating income Interest expense Other income (expense) items Inco


a. Compute the times interest earned ratio for each company. Round to one decimal place.
b. Which company appears to better protect creditor interest? Why?

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Corporate Financial Accounting

ISBN: 9781337398169

15th Edition

Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac

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