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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 statement

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):

1

Marriott

Hyatt

2 Operating profit before other expenses and interest $677.00 $39.00
3 Other income (expenses) 54.00 118.00
4 Interest expense (180.00) (54.00)
5 Income before income taxes $551.00 $103.00
6 Income tax expense 93.00 37.00
7 Net income $458.00 $66.00

Balance sheet information is as follows:

1

Marriott

Hyatt

2 Total liabilities $7,398.00 $2,125.00
3 Total stockholders' equity 1,585.00 5,118.00
4 Total liabilities and stockholders' equity $8,983.00 $7,243.00

The average liabilities, average stockholders' equity, and average total assets are as follows:

Marriott Hyatt
Average total liabilities $7,095 $2,132
Average total stockholders' equity 1,364 5,067
Average total assets 8,458 7,199

1. Determine the following ratios for both companies: Round ratios and percentages to one decimal place.

Marriott Hyatt
A. Return on Total Assets

%

%

B. Return on stockholders' equity

33.6%

1.3%

C. Times interest earned
D. Ratio of liabilities to stockholders' equity 4.7% 0.4%

I need help on calculating the return on total assets, and times interest earned. I keep getting them two wrong.

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