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Group project 2 : Profitability and stockholder ratios ( E , p 4 0 5 , # 9 - 4 ) Harley - Davidson, inc.

Group project 2: Profitability and stockholder ratios (E, p405, #9-4)
Harley-Davidson, inc. (HOG), is a leading motorcycle manufacturer in the United States. The
company manufactures and sells a number of different types of motorcycles, a complete line of
motorcycle parts, and brand-related accessories, clothing, and collectibles. The following
information is available for three recent years (in millions except per-share amounts):
1. Calculate the following ratios for each year. Round to one decimal place except dollar
amounts, which should be rounded to the nearest cent.
a. Return on total assets
b. Return on stockholders equity
c. Earnings per share
d. Dividend yield
e. Price-earnings ratio using the average price per share of stock.
2. What is the average debt ratio and the ratio of liabilities to stockholders equity for Years 1,2,
and 3?
3. Comment on the results in (1) and (2).
Group project 3: Comprehensive profitability and solvency analysis (E, p406, #9-5)
Starwood Hotels & Resorts Worldwide inc. (HOT) and Marriott international inc. (MAR) are
two major owners and managers of lodging and resort properties in the United States. Financial
data (in millions) for a recent year for the two companies are as follows:
The average liabilities, stockholders equity, and total assets were as follows:
1. Determine the following ratios for both companies (round to one decimal place after the whole
percent):
a. Return on total assets.

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