Problem

Analyze and compare Marriott and Hyatt

Marriott International, Inc. (MAR) and Hyatt Hotels Corporation (H) 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):

Balance sheet information is as follows:

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

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

a. Return on total assets

b. Return on stockholders equity

c. Times interest earned

d. Ratio of liabilities to stockholders equity

2. Based on the information in (1), analyze and compare the two companies solvency and profitability.

\begin{tabular}{lrr} & Marriott & Hyatt \\ \hline Average total liabilities & $22,910 & $4,208 \\ Average total stockholders' equity & 1,464 & 3,822 \\ Average total assets & 24,374 & 8,030 \end{tabular}