Comprehensive profitability and solvency analysis 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:

Marriott

(in millions)

Hyatt

(in millions)

Operating profit before other expenses and interest $ 677 $ 39 Other income (expenses) 54 118 Interest expense (180) (54)

Income before income taxes $ 551 $103 Income tax expense 93 37 Net income $ 458 $ 66 Balance sheet information is as follows:
Marriott (in millions)
Hyatt (in millions)
Total liabilities $7,398 $2,125 Total stockholders’ equity 1,585 5,118 Total liabilities and stockholders’ equity $8,983 $7,243 The average liabilities, average stockholders’ equity, and average total assets were as follows:
Marriott (in millions)
Hyatt (in millions)
Average total liabilities $7,095 $2,132 Average total stockholders’ equity 1,364 5,067 Average total assets 8,458 7,199 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).