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?

	Choice Hotels			Marriott International			(2016/2015)-1	(2016/2015)-1
Ratios	2016	2015		2016	2015		Percent Change from 2015 to 2016	Percent Change from 2015 to 2016
							Choice	Marriott
Basic earning power (BEP) ratio = earnings before interest and taxes (EBIT) / total assets	3.5	3.2		0.06	0.23		0.09	2.98
Return on equity (ROE) = net profit / total equity	-0.45	-0.32		0.15	-0.24		0.41	-1.61
Return on assets (ROA) = net income / total assets	0.16	0.18		0.03	0.14		-0.08	-0.77
Profit margin = profit (gross or net) / sales	-0.14	-0.16		0.18	0.15		-0.13	0.41
Operating margin = operating income / revenue	0.26	0.26		0.16	1.57		-0.01	-0.90