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Marriott International, Inc., and Wyndham Worldwide Corporation

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Question;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:x Marriott Wyndham x (in millions) (in millions) Operating profit before other expenses and interest $695 $718 Other income (expenses) 36 12 Interest expense (180) (167) Income before income taxes $551 $563 Income tax expense 93 184 Net income $458 $379 Balance sheet information is as follows:x Marriott Wyndham x (in millions) (in millions) Total liabilities $7,398 $6,499 Total stockholders? equity 1,585 2,917 Total liabilities and stockholders? equity $8,983 $9,416 The average liabilities, stockholders? equity, and total assets were as follows:x Marriott Wyndham x (in millions) (in millions) Average total liabilities $7,095 $6,582 Average total stockholders? equity 1,363 2,802 Average total assets 8,458 9,384 1. Determine the following ratios for both companies (round to one decimal place after the whole percent):a. Rate earned on total assetsb. Rate earned on total stockholders? equityc. Number of times interest charges are earnedd. Ratio of liabilities to stockholders? equity2. Analyze and compare the two companies, using the information in (1).

 

Paper#40857 | Written in 18-Jul-2015

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