Presentation Slides

MARRIOT INTERNATIONAL 1

MARRIOT INTERNATIONAL 2

Team Paper

Rymario Armstrong

Marina Layvand

MBA515 Accounting for Management Decisions

Park University

20200922

Common size financial statements

The two acquisition targets will be Marriot International and Hyatt Hotels Groups. The common size financial statements will be showing the income statement, balance sheet and cash flow statement.

· Marriot International

Marriot International Income Statement (The Wall Street Journal, 2020)

	31st December 2019	31st December 2018	31st December 2017	31st December 2016	31st December 2015
Sales/revenue	20,972	20,758	20,452	17,072	14,476
Net income	1,273	1907	1,459	780	859
Net Margin	6.07%	9.19%	5.99%	5.67%	5.93%

Marriot International Balance Sheet

	31st December 2019	31st December 2018	31st December 2017	31st December 2016	31st December 2015
Account and note receivable net	9.56%	9.00%	8.31%	7.02%	18.13%
Current Assets	12.48%	11.42%	11.47%	13.96%	22.76%
Intangible Assets	70.61%	73.51%	75.21%	69.88%	39.36%
Noncurrent assets	87.52%	88.58%	88.53%	86.04%	77.24%
Total assets	100.00%	100.00%	100.00%	100.00%	100.00%

Marriot International Cash Flow

	31st Dec 2019	31st Dec 2018	31st Dec 2017	31st Dec 2016	31st Dec 2015
Net Income Growth	-33.35%	30.71%	87.05%	-9.20%	n/a
Net Operating Cash Flow Growth	-28.51%	5.84%	40.77%	10.63%	8.60%
Net Operating Cash Flow/ Sales	8.03%	11.35%	10.89%	9.27%	9.88%

Hyatt Hotels Corp.

Hyatt Hotels Corp Income Statement

	31st Dec 2019	31st Dec 2018	31st Dec 2017	31st Dec2016	31st Dec 2015
Sale/revenue	5,020	4,454	4,462	4,429	4,328
Net Income	766	769	389	204	124
Net Margin	15.26%	17.26%	8.72%	4.61%	2.87%

Hyatt Hotels Corp Balance Sheet

	31st Dec 2019	31st Dec2018	31st Dec 2017	31st Dec2016	31st Dec 2015
Accounts and note receivable	5.00%	5.59%	4.62%	4.16%	3.92%
Current Assets	20.27%	17.60%	17.52%	14.70%	14.81%
Intangible Assets	9.06%	11.92%	6.01%	9.34%	8.91%
Noncurrent assets	79.73%	82.40%	82.48%	85.30%	85.19%
Total assets	100.00%	100.00%	100.00%	100.00%	100.00%

Hyatt Hotels Corp Cash Flow

	31st Dec 2019	31st Dec 2018	31st Dec 2017	31st Dec 2016	31st Dec 2015
Net Income Growth	-0.39%	96.68%	91.67%	64.52%	n/a
Net Operating Cash Flow Growth	26.10%	-41.91%	19.07%	7.17%	69.56%
Net Operating Cash Flow/Sales	8.57%	7.66%	13.16%	11.13%	10.63%

Analysis

Both the revenue of Marriot International and Hyatt Hotel Group has increased gradually since 2015. For the last five years, Marriot International and Hyatt Hotel Group has had a positive net earning with that of Marriot as on 2019 being 6.07% and that of Hyatt Hotel Group being 15.26% as of 2019. In terms of balance sheet, Marriot has experience high and constant noncurrent assets as in average for the last five years as compared to Hyatt Hotel Group which has been reducing with small proportion since 2015 to 2019. More so both organizations have shown a positive cash flow since 2015 to 2019 although in both case they has been slight reduction in 2018 and 2019.

Reference

The Wall Street Journal (2020). MAR | Marriott International Inc. Annual Cash Flow - WSJ. Retrieved September 20, 2020, from https://www.wsj.com/market-data/quotes/MAR/financials/annual/cash-flow/

The Wall Street Journal. (2020). H | Hyatt Hotels Corp. Stock Price & News - WSJ. Retrieved September 20, 2020, from https://www.wsj.com/market-data/quotes/H//