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:

Marriott (in millions) Hyatt (in millions)

Operating profit before other expenses and interest $ 677 $ 39 Other income (expenses) 54 118 Interest expense (180) (54) Income before income taxes $ 551 $103 Income tax expense 93 37 Net income $ 458 $ 66

Balance sheet information is as follows:

Marriott (in millions) Hyatt (in millions)

Total liabilities $7,398 vs $2,125

Total stockholders equity 1,585 vs 5,118

Total liabilities and stockholders equity $8,983 vs $7,243

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

Marriott (in millions) Hyatt (in millions)

Average total liabilities $7,095 vs $2,132

Average total stockholders equity 1,364 vs 5,067

Average total assets 8,458 vs 7,199

1. Determine the following ratios for both companies (round to one decimal place after the whole percent): a. Rate earned on total assets b. Rate earned on stockholders equity c. Number of times interest charges are earned d. Ratio of liabilities to stockholders equity

2. Analyze and compare the two companies, using the information in (1).