Analyze and compare Marriott and Hyatt Marriott International, Inc. (MAR), and Hyatt Hotels Corporation (H) 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 (in millions): Operating profit before other revenue and interest Other revenue (expense) Interest expense Income before income tax expense Income tax expense Net income Balance sheet information is as follows: Total liabilities Total stockholders' equity Total liabilities and stockholders' equity Marriott Hyatt $1,368 $299 50 66 (234) (76) $1,184 $289) (404) (85) $780 $204 Marriott Hyatt $18,783 $3,841 5,357 3,908 $24,140 $7,749 The average liabilities, average stockholders' equity, and average total assets are as follows: Average total liabilities Average total stockholders' equity Average total assets Marriott Hyatt $14,228 883 $3,719 3,951 15,111 7,670 1. Calculate the following ratios for each year (Round ratios and percentages to one decimal place.) Marriott Hyatt 1. Calculate the following ratios for each year (Round ratios and percentages to one decimal place.) Marriott a. Return on total assets 8.6 X % Hyatt 2.2 X % b. Return on stockholders' equity 88.3 % 5.2 % c. Times interest earned 6.1 4.8 V d. Ratio of total liabilities to stockholders' equity 3.5 V 1.0 2. Which of the following statements are correct? 1. Marriott has a higher return on total assets and a higher return on stockholders' equity compared to Hyatt. 2. Hyatt's weaker performance relative to Marriott's appears to be due to its weak earnings relative to its debt level. Hyatt has less leverage than Marnott 3. The times interest earned ratio shows that Hyatt covers its interest charges better than Marriott; however, both companies do not have sufficient coverage. 4. Hyatt's weak earnings and low debt levels are affecting the company's ability to earn returns for stockholders. 1, 2 and 4