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):Please see the attachment for details:1. Determine the following ratios for both companies, rounding ratios and percentages to one decimal place:a. Return on total assetsb. Return on stockholders’ equityc. Times interest earnedd. Ratio of total liabilities to stockholders’ equity2. Based on the information in (1), analyze and compare the two companies’ solvency and profitability. MarriottНyatt$ 39$ 677Operating profit before other expenses and interestOther revenue (expenses)54118(180)Interest expense(54)$ 551$103Income before income taxesIncome tax expense9337$ 458$ 66Net incomeBalance sheet information is as follows:MarriottHyattTotal liabilities$7,398$2,125Total stockholders' equityTotal liabilities and stockholders' equity1,5855,118$8,983$7,243 The average liabilities, average stockholders' equity, and average total assets are as follows:MarriottНyatt$2,132Average total liabilitiesAverage total stockholders' equity$7,0951,3645,067Average total assets8,4587,199

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Answered: Marriott Нyatt $ 39 $ 677 Operating…

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter9: Metric-analysis Of Financial Statements

Section: Chapter Questions

Problem 9.4.9P: Twenty metrics of liquidity, solvency, and profitability The comparative financial statements of...

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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 information for the two companies is as follows for a recent year (in millions):

Please see the attachment for details:

1. Determine the following ratios for both companies, rounding ratios and percentages to one decimal place:
a. Return on total assets
b. Return on stockholders’ equity
c. Times interest earned
d. Ratio of total liabilities to stockholders’ equity
2. Based on the information in (1), analyze and compare the two companies’ solvency and profitability.

Marriott
Нyatt
$ 39
$ 677
Operating profit before other expenses and interest
Other revenue (expenses)
54
118
(180)
Interest expense
(54)
$ 551
$103
Income before income taxes
Income tax expense
93
37
$ 458
$ 66
Net income
Balance sheet information is as follows:
Marriott
Hyatt
Total liabilities
$7,398
$2,125
Total stockholders' equity
Total liabilities and stockholders' equity
1,585
5,118
$8,983
$7,243

The average liabilities, average stockholders' equity, and average total assets are as follows:
Marriott
Нyatt
$2,132
Average total liabilities
Average total stockholders' equity
$7,095
1,364
5,067
Average total assets
8,458
7,199

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