Professional Documents
Culture Documents
Marriot
Marriot
xls
1978
1979
1980
1981
Summary of Operations
Sales
Earnings before interest
expense and income taxes
Interest Expense
Income before income taxes
Income taxes
Income from continuing operations
Net Income
Funds provided from cont. operations
1,174.1
1,426.0
1,633.9
1,905.7
107.1
23.7
83.5
35.4
48.1
54.3
101.2
133.5
27.8
105.6
43.8
61.8
71.0
117.5
150.3
46.8
103.5
40.6
92.9
72.0
125.8
173.3
52.0
121.3
45.2
76.1
86.1
160.8
1,000.3
826.9
309.9
37.5%
418.7
1,080.4
891.9
365.3
41.0%
413.5
1,214.3
977.7
536.6
54.9%
311.5
1,454.9
1,167.5
607.7
52.1%
421.7
0.25
0.29
0.026
2.28
2.43
183.6
13.9%
0.34
0.39
0.034
2.58
3.48
160.5
17.0%
0.45
0.52
0.042
2.49
6.35
125.3
23.8%
0.57
0.64
0.051
3.22
7.18
130.8
23.4%
Lodging:
Sales
1982
1983
1984
1985
1986
$1,091.7
$1,320.5
$1,640.8
$1,898.4
$2,233.1
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297044324.xls
Operating profit
Identifiable assets
Depreciation
Capital expenditures
132.6
909.7
22.7
371.5
139.7
1,264.6
27.4
377.2
161.2
1,786.3
31.3
366.4
185.8
2,108.9
32.4
808.3
215.7
2,236.7
37.1
966.6
Contract Services:
Sales
Operating profit
Identifiable assets
Depreciation
Capital expenditures
819.8
51.0
373.3
22.9
127.7
950.6
71.7
391.6
26.1
43.8
1,111.3
86.8
403.9
28.9
55.6
1,586.3
118.6
624.4
40.2
125.9
2,236.1
154.9
1,070.2
61.1
448.7
Retaurants:
Sales
Operating profit
Identifiable assets
Depreciation
Capital expenditures
547.4
48.5
452.2
25.1
199.6
679.4
63.8
483.0
31.8
65.0
707.0
79.7
496.7
35.5
72.3
757.0
78.2
582.6
34.8
128.4
797.3
79.1
562.3
38.1
64.0
Exhibit 3
MARRIOTT CORPORATION
Aritmetic (a)
Average
Return
Equity (b)
Beta
Market (c)
Leverage
22.40%
1.11
41%
13.30%
0.76
14%
28.80%
1.35
79%
-6.40%
0.89
69%
11.70%
1.36
65%
Hotels:
HILTON HOTELS CORPORATION
(owns, manages, and licenses hotels.
Operates casinos.)
HOLIDAY CORPORATION
(Owns, operates, and licenses hotels and restaurants.
Operates casinos.)
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297044324.xls
Restaurants:
CHURCH'S FRIED CHICKEN
-3.20%
1.45
4%
20.30%
1.45
10%
56.90%
0.57
6%
15.10%
0.76
1%
22.50%
0.94
23%
4.60%
1.32
21%
FRISCH'S RESTAURANTS
(Operates and franchises restaurants.)
LUBY'S CAFETERIAS
(Operates Cafeterias.)
MCDONALD'S
(Operates, franchises, and services restaurants.)
WENDY'S INTERNATIONAL
(Operates, franchises, and services restaurants.)
Arimethic
Average
Years
Standard
Deviation
3.54%
1.01%
3.67%
7.80%
10.32%
6.16%
5.46%
0.94%
0.40%
0.56%
0.83%
0.75%
0.19%
0.22%
4.58%
4.14%
2.39%
7.58%
4.17%
6.45%
Page 3
297044324.xls
1976-80
1981-85
1986
1987
1.95%
17.85%
24.44%
-2.69%
11.15%
14.26%
17.30%
10.28%
5.24%
4.82%
3.05%
2.70%
18.96%
19.85%
-0.27%
6.97%
3.45%
6.04%
10.87%
14.17%
8.19%
9.64%
12.01%
10.90%
11.87%
14.81%
15.49%
18.47%
5.23%
20.55%
27.18%
13.57%
14.60%
13.92%
17.94%
30.50%
Exhibit 5
Arimethic
Average
Years
Standard
Deviation
8.47%
9.89%
8.20%
7.01%
5.17%
12.31%
-0.23%
Page 4
20.60%
27.18%
13.71%
14.60%
14.15%
17.92%
30.61%
297044324.xls
1926-87
1926-50
1951-75
1976-80
1981-85
1986
1987
7.43%
6.76%
9.48%
12.86%
-2.36%
-5.97%
7.92%
20.78%
26.94%
14.35%
15.58%
13.70%
14.76%
35.35%
6.77%
6.06%
8.82%
12.11%
-3.47%
-1.38%
5.50%
20.31%
26.70%
13.15%
15.84%
13.59%
14.72%
34.06%
Professor Richard S. Ruback prepared this case as a basis for class discussion
rather than to illustrate either effective or ineffective handling of an administrative situation
WORKSHEET NAVIGATION
This worksheet contains the data from the following exhibits:
Exhibit 1: Financial History of Marriott Corporation
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297044324.xls
Exhibit 2: Financial Summary of Marriott by Business Segment, 1982-1987
Exhibit 3: Information on Comparable Hotel and Restaurant Companies
Exhibit 4: Exhibit 4 Annual Holding-Period Returns for Selected Securities
and market Indexes, 1926-1987
Exhibit 5: Spreads between S&P 500 Composite Returns and Bond Rates
The first exhibit is located in the A1 position.
To view each succeeding exhibit, use the SCROLL Bar to view the next exhibit
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297044324.xls
1983
1984
1985
1986
1987
2,458.9
2,950.5
3,524.9
4,241.7
5,266.5
6,522.2
205.5
71.8
133.7
50.2
83.5
94.3
203.6
247.9
62.8
185.1
76.7
108.4
115.2
272.7
297.7
61.6
236.1
100.8
135.3
139.8
322.5
371.3
75.6
295.7
128.3
167.4
167.4
372.3
420.5
60.3
360.2
168.5
191.7
191.7
430.3
489.4
90.5
398.9
175.9
223.0
223.0
472.8
2,062.6
1,634.5
889.3
54.4%
516.0
2,501.4
2,007.5
1,071.6
53.4%
628.2
2,904.7
2,330.7
1,115.3
47.9%
675.6
3,663.8
2,861.4
1,192.3
41.7%
848.5
4,579.3
3,561.8
1,662.8
46.7%
991.0
5,370.5
4,247.8
2,498.8
58.8%
810.8
0.61
0.69
0.063
3.89
11.70
132.8
20.0%
0.78
0.83
0.076
4.67
14.25
134.4
20.0%
1.00
1.04
0.093
5.25
14.70
128.8
22.1%
1.24
1.24
0.113
6.48
21.58
131.0
22.1%
1.40
1.40
0.136
7.59
29.75
130.6
20.6%
1.67
1.67
0.170
6.82
30.00
118.8
22.2%
1987
$2,673.3
Page 7
297044324.xls
263.9
2,777.4
43.9
1,241.9
2,969.0
170.6
1,237.7
75.3
112.7
879.9
82.4
567.6
42.1
79.6
1987
Revenues
($ billions)
6.52
0.77
1.66
0.17
0.75
Page 8
297044324.xls
0.39
0.57
0.14
0.23
4.89
1.05
ry least squares
value of equity.
Page 9
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EXHIBITS...
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