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Income Statement
(In Millions)	Marriott	Hyatt
Operating Profit before other expenses and interest	$677	$39
Other income (expenses)	$54	118
Interest expense	-180	-54
Income before income taxes	551	103
Income tax expense	-93	-37
Net income	$458	$66
Balance Sheet	Marriott	Hyatt
Total liabilities	$7,398	$2,125
Total stockholders equity	1,585	5,118
Total liabilities and stockholders equity	$8,983	$7,243
The average liabilities, average stockholders equity, and average total assets	Marriott	Hyatt
Average total liabilities	$7,095	$2,132
Average total stockholders equity	1,364	5,067
Average total assets	$8,458	$7,199

1. Determine the following ratios for both companies (round to one decimal place after the whole percent for example 8.3%). Show all calculations along with your final answers.

a. Rate earned on total assets

b. Rate earned on stockholders equity

c. Number of times interest charges are earned

d. Ratio of liabilities to stockholders equity

Marriott Hyatt a. Rate earned on total assets Net income/ Average Total Assests $458/$8,983= 0.05098 x 100 $66/$7,199= 0.0091 x 100 5.1% 0.9% b. Rate earned on stockholders equity Net Income/ Stockholder's Equity $458 / $1,364 x 100 $66/$5,067 x 100 33.6% 1.3% c. Number of times interest charges are earned Income before interest and income taxes/ Interest expense ($677 + $54) / 180 ($39 + $118) / $54 4.1% 2.9% d. Ratio of liabilities to stockholders equity Total liailities / Stockholders' equity $7,398 / $1,585 $2,125 / $5,118 4.7% 0.4%

Write up a brief analysis comparing the two companies using the ratios calculated in part 1.

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