Question
1. The return on assets ratio tells us the profit generated by each dollar in assets. You will want to compare this ratio to Choice
1. The return on assets ratio tells us the profit generated by each dollar in assets. You will want to compare this ratio to Choice Hotels' historical performance and to Marriott International to understand if it is an acceptable ratio. Is the return on assets ratio acceptable? Why or why not?
2. Which of the above ratios would you use to determine which company, Choice Hotels or Marriott International, is more attractive for an acquisition? Why?
3. Based on the financial statement analysis, earnings per share analysis, budgeting ratios, and the above profitability ratios, which company would you invest in and why?
Inet of allowance for dovbtul of $11,332 and 58,557 recavablke, net of allowance Accounts and notes rocevablke, net Total current assets and equipment, at cost, net Goodwill and intangble assets, net, total$ receivable, net of allowances omployeo bonetit plans, at fair AND SHAREHOLDtns tquITY oxpenses and other cument t portion of long-term debt Liability forauest loyaty proeras Defamed compensation and netiremant plan Liability forauost loyaity prograns Common sock, $0.01 parvalue Class A Common Srock Retained eamings Tressury stock (38,471418 and Accumulared other compeehessveloss 1070,3831 Treasury stock, at cost Accumulared other comesehesve loss Stockholders' equity (dofic attributable 70 Liabilties and equity (deficit), total Total liabilities and shareholders equity $ Income Statement Balance Sheet Cost and Investing ing Inet of allowance for dovbtul of $11,332 and 58,557 recavablke, net of allowance Accounts and notes rocevablke, net Total current assets and equipment, at cost, net Goodwill and intangble assets, net, total$ receivable, net of allowances omployeo bonetit plans, at fair AND SHAREHOLDtns tquITY oxpenses and other cument t portion of long-term debt Liability forauest loyaty proeras Defamed compensation and netiremant plan Liability forauost loyaity prograns Common sock, $0.01 parvalue Class A Common Srock Retained eamings Tressury stock (38,471418 and Accumulared other compeehessveloss 1070,3831 Treasury stock, at cost Accumulared other comesehesve loss Stockholders' equity (dofic attributable 70 Liabilties and equity (deficit), total Total liabilities and shareholders equity $ Income Statement Balance Sheet Cost and Investing ingStep by Step Solution
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