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

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 total 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).objs. 2, 3

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Operating profit before other expenses and interest Other income (expenses) Interest expense income before income taxes Income tax expense Marriott (in millions) $ 477 318 (99) $ 696 Hilton (in millions) $ 658 (19) (274) $ 365 127 100 $ 596 $ 238 Net income Balance sheet information is as follows: Total liabilities Total stockholders' equity Marriott (in millions) $4,587 4,081 $8,668 Hilton (in millions) $5,674 2,568 $8,242 Total liabilties and stockholders' equity The average liabilities, stockholders' equity, and total assets were as follows: Marriott Hilton Average total liabilities $4,210 $5,809 Average total stockholders' equity 3,960 2,404 Average total assets 8,423 8,213