Financial Statements for Midterm Exam
Hyatt Hotels Corp
Balance Sheet
Currency in
Millions of US Dollars
As of:
Dec 31
2010
Dec 31
2011
Assets
Cash and Equivalents
1,110.0
534.0
Short-Term Investments
546.0
610.0
TOTAL CASH AND SHORT TERM INVESTMENTS
1,656.0
1,144.0
Accounts Receivable
199.0
225.0
TOTAL RECEIVABLES
199.0
225.0
Inventory
100.0
87.0
Prepaid Expenses
51.0
56.0
Deferred Tax Assets, Current
29.0
23.0
Restricted Cash
106.0
27.0
Other Current Assets
24.0
29.0
TOTAL CURRENT ASSETS
2,165.0
1,591.0
Gross Property Plant and Equipment
5,437.0
6,083.0
Accumulated Depreciation
-1,984.0
-2,040.0
NET PROPERTY PLANT AND EQUIPMENT
3,453.0
4,043.0
Goodwill
102.0
102.0
Long-Term Investments
718.0
774.0
Loans Receivable, Long Term
375.0
360.0
Deferred Tax Assets, Long Term
62.0
197.0
Other Intangibles
280.0
359.0
Other Long-Term Assets
88.0
81.0
TOTAL ASSETS
7,243.0
7,507.0
LIABILITIES & EQUITY
Accounts Payable
145.0
144.0
Accrued Expenses
390.0
419.0
Current Portion of Long-Term Debt/Capital Lease
57.0
4.0
Other Current Liabilities, Total
4.0
1.0
TOTAL CURRENT LIABILITIES
596.0
568.0
Long-Term Debt
714.0
1,221.0
Minority Interest
13.0
10.0
Unearned Revenue, Non-Current
45.0
57.0
Pension & Other Post-Retirement Benefits
27.0
28.0
Deferred Tax Liability Non-Current
20.0
5.0
Other Non-Current Liabilities
710.0
800.0
TOTAL LIABILITIES
2,112.0
2,679.0
Common Stock
2.0
2.0
Additional Paid in Capital
3,751.0
3,380.0
Retained Earnings
1,404.0
1,517.0
Treasury Stock
-1.0
-1.0
Comprehensive Income and Other
-38.0
-80.0
TOTAL COMMON EQUITY
5,118.0
4,818.0
TOTAL EQUITY
5,131.0
4,828.0
TOTAL LIABILITIES AND EQUITY
7,243.0
7,507.0
Hyatt Hotels Corp
Income Statement
Currency in
Millions of US Dollars
As of:
Revenues
2,114.0
2,167.0
Other Revenues
45.0
66.0
TOTAL REVENUES
2,159.0
2,233.0
Cost of Goods Sold
1,540.0
1,498.0
GROSS PROFIT
619.0
735.0
Selling General & Admin Expenses, Total
276.0
283.0
Depreciation & Amortization, Total
279.0
305.0
Other Operating Expenses
0.0
0.0
OTHER OPERATING EXPENSES, TOTAL
555.0
588.0
OPERATING INCOME
64.0
147.0
Interest Expense
-54.0
-57.0
Interest and Investment Income
21.0
23.0
NET INTEREST EXPENSE
-33.0
-34.0
Income (Loss) on Equity Investments
-40.0
4.0
Currency Exchange Gains (Loss)
-3.0
-5.0
Other Non-Operating Income (Expenses)
-1.0
-11.0
EBT, EXCLUDING UNUSUAL ITEMS
-13.0
101.0
Merger & Restructuring Charges
—
-5.0
Gain (Loss) on Sale of Investments
40.0
-11.0
Gain (Loss) on Sale of Assets
26.0
-2.0
Other Unusual Items, Total
35.0
—
Other Unusual Items
35.0
—
EBT, INCLUDING UNUSUAL ITEMS
88.0
83.0
Income Tax Expense
37.0
-28.0
Minority Interest in Earnings
11.0
2.0
Earnings from Continuing Operations
51.0
111.0
EARNINGS FROM DISCOUNTINUED OPERATIONS
4.0
—
NET INCOME
66.0
113.0
NET INCOME TO COMMON INCLUDING EXTRA ITEMS
66.0
113.0
NET INCOME TO COMMON EXCLUDING EXTRA ITEMS
62.0
113.0
1. Using the Balance Sheet and Income Statement above, you are required to calculate (ROUND TO ONE DECIMAL PLACE) the following ratios for 2010 and 2011: (40 points)
- Calculate Current ratio. (4 points)
- Based upon the current ratio, would creditors and owners be pleased with the performance of the hotel? Why? (8 points)
- Calculate Acid test / Quick ratio. (4 points)
- Calculate Debt to asset. (4 points)
- Based on your Debt to asset ratio, would the owners be pleased with the performance of the business? Why? (4 points)
- Calculate Inventory Turnover Ratio (assume inventory was $100,000 for 2008)? (4 points)
- Calculate Return on Assets. (4 points)
- Calculate Profit margin. (4 points)
- Would the three parties; owners, creditors and managers be pleased with the profitability of the business? Why? (4 points)
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