Ratio Analysis
Ratio Analysis Assignment-Danielle Goettl
Using the financial ratios studied in this course, prepare a financial analysis of Marriot's financial results for 2007-2011. Your analysis should address the following:
1. Income Statement:
a. What trends do you see in Total Revenue? The trends that I see are that the total revenue for Marriot has stayed fairly consistent over the last five years. The smallest revenue year was in 2009 and but it wasn’t hugely drastic.
b. How does 2011 net income compare to prior years? What items shown on the income statement show significant changes? In 2009 they had a huge unusual expense. They were also negative in the following categories; operating income, income before taxes, income before taxes and net income. The other year that they had a lower profit was in 2011 when they again had a large expense in the unusual expense column.
2. Balance Sheet:
a. Using ratios introduced in your assigned readings for this course, calculate (show your calculations): i. at least four ratios for 2011. 1. Working Capital. Current Assets-Current Liability. 5910-2558=3352 2. Current Ratio: Current Assets / Current Liability. 5910/2558= 2.31 3. Dept equity: Total Liabilities/ total Stockholders’ Equity: 1. 6691/781=8.58:1 4. Shareholders’ Equity: Total Assets- Total Liabilities. 5910-6691=-781 ii. Calculate the same four ratios selected for 2009 and 2010 1. 2010 Working Capital: 3382-2501=881 2009 Working Capital: 2851-2287=564 2. 2010 Current Ratio: 3382/2501=1.35 2009 Current Ratio: 2851/2287=1.25 3. 2010 Debt Equity: 7398/1585=4.67 2009 Debt Equity: 6791/1142=5.95 4. 2010 Shareholders’ Equity: 8983-7398=1585 2009 Shareholders’ Equity: 7933-6791=1142 iii. For each ratio calculated discuss your observations in comparing 2011 results with the two prior years.
For the working capital I noticed that 2011 was
Using the financial ratios studied in this course, prepare a financial analysis of Marriot's financial results for 2007-2011. Your analysis should address the following:
1. Income Statement:
a. What trends do you see in Total Revenue? The trends that I see are that the total revenue for Marriot has stayed fairly consistent over the last five years. The smallest revenue year was in 2009 and but it wasn’t hugely drastic.
b. How does 2011 net income compare to prior years? What items shown on the income statement show significant changes? In 2009 they had a huge unusual expense. They were also negative in the following categories; operating income, income before taxes, income before taxes and net income. The other year that they had a lower profit was in 2011 when they again had a large expense in the unusual expense column.
2. Balance Sheet:
a. Using ratios introduced in your assigned readings for this course, calculate (show your calculations): i. at least four ratios for 2011. 1. Working Capital. Current Assets-Current Liability. 5910-2558=3352 2. Current Ratio: Current Assets / Current Liability. 5910/2558= 2.31 3. Dept equity: Total Liabilities/ total Stockholders’ Equity: 1. 6691/781=8.58:1 4. Shareholders’ Equity: Total Assets- Total Liabilities. 5910-6691=-781 ii. Calculate the same four ratios selected for 2009 and 2010 1. 2010 Working Capital: 3382-2501=881 2009 Working Capital: 2851-2287=564 2. 2010 Current Ratio: 3382/2501=1.35 2009 Current Ratio: 2851/2287=1.25 3. 2010 Debt Equity: 7398/1585=4.67 2009 Debt Equity: 6791/1142=5.95 4. 2010 Shareholders’ Equity: 8983-7398=1585 2009 Shareholders’ Equity: 7933-6791=1142 iii. For each ratio calculated discuss your observations in comparing 2011 results with the two prior years.
For the working capital I noticed that 2011 was