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Case 9-5 Comprehensive profitability and solvency analysis Starwood Hotels & Resorts Worldwide Inc. (HOT) and Wyndham Worldwide Corporation (WYN two major owners and managers of

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Case 9-5 Comprehensive profitability and solvency analysis Starwood Hotels & Resorts Worldwide Inc. (HOT) and Wyndham Worldwide Corporation (WYN two major owners and managers of lodging and resort properties in the United States. nancial data (in millions) for a recent year for the two companies are as follows: Starwood Wyndham Income statement data: Interest expense Income before income tax Net income 139 782 633 $ 125 916 612 Balance sheet data: Total assets Total liabilities Total stockholders' equity $8,659 7,134 1,525 $9,716 8,766 950 The average liabilities, stockholders' equity, and total assets were as follows: Average total assets Average total liabilities Average total stockholders' equity Starwood $8,711 6,268 2,443 Wyndham $9,698 8,595 1,103 1. Determine the following ratios for both companies (round to one decimal place after the whole percent): a. Return on total assets b. Return on total stockholders' equity c. Times interest earned d. Debt ratio for the most recent year e. Ratio of liabilities to stockholders' equity for the most recent year. 2. Analyze and compare the two companies, using the information in (1)

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