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Marriott International, Inc., and Hyatt Hotels Corporation are two major owners and managers of lodging and resort properties in the United States. Abstracted income
Marriott International, Inc., and Hyatt Hotels Corporation 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 expenses and Interest Other revenue 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 $2,366 $332 319 695 (340) (76) $2,345 $951 438 182 $1,907 $769 Marriott Hyatt $21,471 $3,966 2,225 $23,696 3,677 $7,643 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 $20,868 $3,848 2,903 23,771 3,760 7,608 INITIAL POST: For your initial post determine the following ratios for both companies, then based on the information analyze and compare the two companies' solvency and profitability. Ratios: (1) Return on total assets; (2) Return on stockholders' equity; (3) Times interest earned; (4) Ratio of total liabilities to stockholders' equity.
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