Analyze and compare Hilton and Marriott 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): Operating income Interest expense Other income (expense) items Income before income tax expense Income tax expense Net income Hilton $1,010 (397) (53) Hilton: Marriott: (420) 150) $1,180 (81) $1,099 a. Compute the times interest earned ratio for each company. Round to one decimal place. Marriott $1,750 $560 (153) $407 b. Based on the data provided and your calculations which of the following statements are correct. 1. Marriott's earnings provide its creditors greater protection of their interest charges than Hilton's earnings provide to its creditors. 2. Hilton provide more than adequate protection for creditors' interest coverage. 3. Both companies provide more than adequate protection for creditors' interest coverage. 4. Neither company provide more than adequate protection for creditors' interest coverage.

Analyze and compare Hilton and Marriott Milten Worldwide Holdings, Inc. (HLT) and Marriott International, Inc. (MAR) are two of the largest hotel oporators in the world. Selected finandel infermation from recent income statements for both companies follows (in milions): a. Compute the times interest earned rato for each company. Round to one decimal place. Hition: Marriote: b. Bssed on the dsta provided and your calculations which of the following statements are correct. 1. Marriott's earnings provide its creditors greater protection of their interest charges than Heiton's earnings provide to its credizors. 2. Hiten provide more than adcquate protection for creditors' interest coverage. 3. Both companies provide more than adequate protection for creditors' interest coverage. 4. Neither company provide more than adequate protection for creditors' interest coverage