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.
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.

Transcribed Image Text:

Operating profit before other revenue and interest Other revenue (expense) Interest expense Income before income tax expense Income tax expense Net income Marriott $1,800 193 (394) $1,599 (326) $1,273 Hyatt $ 197 884 (75) $1,006 (240) $ 766