Marriott International, Inc., and Wyndham Worldwide 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:

Balance sheet information is as follows:

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

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 total 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).

Transcribed Image Text:

Marriott (in millions) n millions) Wyndham $ 695 $718 Operating profit before other expenses and interest Other income (expenses) Interest expense Income before income taxes Income tax expense Net income 36 (180) 551 93 458 12 (167) $ 563 184 $379 Total liabilities Total stockholders' equity Total liabilities and stockholders'equity Marriott (in millions) $7,398 1,585 $8,983 Wyndham (in millions) $6,499 2,917 $9,416 Marriott Wyndham (in millions) $7,095 millions) Average total liabilities Average total stockholders' equity Average total assets 1,363 8,458 $6,582 2,802 9,384