An 8min ppt presentation including script distinguishing the difference between two companies.

Focus on 4 main areas

-Balance sheet analysis

-Income statement analysis

-Statement of cash flows analysis

-Market capitalization

financial data included

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0

2.225

0.551

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13.995

Balance sheet analysis

1.From the balance sheet analysis we can know that：

（1）The largest asset of Marriott international is intangible asset, which represents 17.419 billion dollars, and the largest debt is long-term debt, which represents 8.514 billion dollars.

（2）The largest asset of Hilton hotel is also intangible asset, which represents 11.316 billion dollars, and their largest debt is also long-time debt, which represents 7.266 billion dollars.

2.（1）The total asset of Marriott international is 23.696 billion dollars, among which 2.225 billion dollars belongs to the owners, accounting 9.39 percent and 21.471 billion dollars belongs to creditors, accounting for 91.61 percent.

2018/12/31

2017/12/31

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1.372b

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5m

1.907b

1.372b

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1.907b

Profit statement analysis:

1.In accordance with the statement of income, we can draw conclusions from the analysis:

（1）The majority of expenditure of Marriott international lies in the cost of operation, which amounts to 17.31 billion dollars.

（2）The majority of expenditure of Hilton hotel goes to the cost of operation too, which amounts to 6.98 billion dollars.

2. Compared to the data regarding circumstances of 2017, there are normal and discontinued items for both Marriott international and Hilton hotel.

3.Through the comparison of net profits of these two companies in the year of 2017 and 2018, we can know that:

（1）The net profit of Marriott international in the year of 2018 has seen slight growth of 535 million dollars from 1.372 billion dollars in 2017 to 1.907 billion dollars in 2018.

（2）While the net profit of Hilton hotel has dropped from 1.259 billion dollars to 764 million dollars, a quite substantial decrease of profit.

Statement of cash flows
31st December,2018
Unit: m-million, b-billion dollars

Marriott international

Hilton hotel

Net profit

1.907b

0.769b

Depreciation loss and amortization

284m

325,

Deferred tax and investment tax cut

-239m

-14m

Other operating funds

481m

82m

Operation funds

2.433b

1.162b

Special items

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Changes of operating items

-76m

93m

Cash flow of operating

2.537b

1.255b

Asset flow-out

-556m

-159m

Net assets from acquisition

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—

Revenue of fixed assets and sales business

479m

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Net investment sales

35m

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Non-cash item

-10m

28m

Cash flow of investment

-52m

-131m

Cash dividend

-543m

-181m

Changes in capital stock

–2.846b

-1.721b

Issuance/cut net liability

1120m

650m

Other financing funds

-105m

-48m

Financing cash flow

-2.374b

-1.3b

Exchange rate impact

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-10 m

Funds for other items

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Net cash flow

-69m

-186m

Free cash flow

1.801b

1.183b

Statement of cash flows:

1. From the statement of cash flows, we can know that: items that are relevant to cash flows of operation include depreciation loss and amortization, deferred tax and investment tax credit, other funds for operating, cost of operation and changes in working capital. Besides, all transaction activities are fair.

2.Cash flows of operating for both two companies are higher than their net profits, which demonstrates that cash flows of their operating are sufficient and they are both potential in earning much more profits.

3.There are flow-in and flow-out in cash flows of investment for both Marriott international and Hilton hotel:

（1）For Marriott international, there was 556 million dollars of cash flows of investment that was used for capital expenditure, and ten million dollars was used for no cash items. Fixed assets and sales of business have produced cash flows of 479 million dollars. The cash flow brought by investment business was35 million dollars. The total amount of cash flows of investment has seen a deficit of 52 million dollars.

（2）There was 159 million dollars in the cash flow of investment has been used for capital expenditure. Cash flow produced by non-cash items was 28 million dollars. The total amount of cash flow of investment has seen a deficit of 131 million dollars.

4. Both Marriott international and Hilton hotel have seen a flow-in and flow-out of financing cash flow.

（1）543 million dollars of financing cash flow of Marriott international has been issued as cash dividend. 2.846 million dollars of financing cash flow of the company has been put into changes in equity values.105 million dollars of financing cash flow has been used as other financing funds.1.12 billion dollars has been brought about by the issuance of debts. The total amount of financing cash flow has seen a deficit of 2.374 billion dollars in the year of 2018.

（2）181 million dollars of financing cash flow of Hilton hotel has been issued as cash dividend. 1.721 billion dollars of financing cash flow of the company has been put into changes in equity. 48 million dollars of financing cash flow has been used as other financing funds. 650 million dollars of cash flow has been produced by the issuance of debts. The total amount of financing cash flow has seen a deficit of 1.3 billion dollars.

Stock market capitalization:

Stock values reflected from the internet show that：

1. The value of each stock of Marriott international at the present reaches 143.24 dollars.

2. The value of each stock of Hilton hotel in the current reaches 109.57 dollars.

Return on owners equity

· The return on equity for Marriott in 2018 is 85.7%.. In contrast Hilton has a ROE of 1.387. therefore Hilton has a