Question

Marriott International, Inc., provides lodging services around the world. The company is organized into the following four segments:
North American—Full Service: Marriott and Renaissance Hotels.
North American—Limited Service: Courtyard, Fairfield, SpringHill Suites, and Residence Hotels.
International: Hotels outside of North America.
Luxury: The Ritz-Carlton, Bulgari, and Edition Hotels.
Financial information for each segment taken from a recent annual report is as follows (in millions):


a. Use the DuPont formula to determine the return on investment for each of the Marriott business divisions. Round profit margin and rate of return on investment to one decimal place and investment turnover to two decimal places.
b. Determine the residual income for each division, assuming a minimum acceptable income of 10% of total assets. Round minimal acceptable return to the nearest million dollars.
c. Interpret yourresults.


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  • CreatedMarch 11, 2014
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