Write 5 obervations. Marriott Comparison Date Dec 31, 2014 HYATT MARRIOTT STARWO
ID: 2384045 • Letter: W
Question
Write 5 obervations.
Marriott Comparison Date Dec 31, 2014 HYATT MARRIOTT STARWOOD Current Assets $1,709.0M $1,921.0M $2,321.0M Inventory $17.0M $0.0K $236.0M Prepaid Expenses $0.0K $0.0K $0.0K Fixed Assets $6,434.0M $4,944.0M $6,338.0M Total Assets $8,143.0M $6,865.0M $8,659.0M Current Liabilities $730.0M $3,060.0M $2,450.0M Total Debt $1,390.0M $3,457.0M $2,574.0M Total Equity $4,627.0M - $2,200,000.0K $1,525.0M Sales $4,415.0M $13,796.0M $5,983.0M Cost of Sales $1,726.0M $11,830.0M $1,708.0M EBIT $596.0M $1,203.0M $782.0M Interest Expense $71.0M $115.0M $0.0K Net Income $344.0M $753.0M $633.0M Market Price of Common Shares $60.21 $78.03 $81.07 Shares Outstanding 26,564,652 110,958,660 136,132,744 Total Dividends $0.0K $0.0K $0.0K Current Ratio 2.341 0.628 0.947 Quick Ratio 2.318 0.628 0.851 Inventory Turnover 101.529 0.000 7.237 Asset Turnover 0.542 2.010 0.691 Fixed-Asset Turnover 0.686 2.790 0.944 Debt-to-Asset Ratio 0.568 -0.320 0.176 Debt-to-Equity Ratio 0.300 -1.571 1.688 Times Interest Earned 8.394 10.461 0.000 Net Profit Margin 7.79% 5.46% 10.58% Return on Investment (Assets) 4.22% 10.97% 7.31% Return on Investment-DuPont (Assets) 4.22% 10.97% 7.31% Return on Equity 7.43% -34.23% 41.51% Earnings per Share $12.95 $6.79 $4.65 Annual Dividend per Common Share $0.00 $0.00 $0.00 Price-to-Earnings Ratio 4.650 11.498 17.435 Dividend Payout Ratio 0.000 0.000 0.000 Dividend Yield Ratio 0.000 0.000 0.000 Make 5 meaningful observations by comparing the subject company to its competitors. Observation 1 Observation 2 Observation 3 Observation 4 Observation 5Explanation / Answer
Answer:
Observation 1.Current ratio of hyatt is greater than other two .so,it implies Hyatt is generally considered to have good short-term financial strength. and Quick ratio of hyatt is greater than other two . so, it implies Hyatt , The higher the quick ratio, the better the company's liquidity position.
Observation 2:Asset turnover ratio of MARRIOTT is higher than other two.so, it implies the higher the asset turnover ratio, the better the company is performing, since higher ratios imply that the company is generating more revenue per dollar of assets.
Observation 3:Net profit margin of starwood is higher than other two so it implies that Starwood is generating highar profits. so it has more profitable.
Observation 4:EPS of hyatt is higher than other two so that hyatt is generating profit for its shareholder more.so it has more wealth.
Observation 5:ROI of marriott is greater than others so it imples that its investment has greater return and profit.
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