Marriott Corporation (A) Harvard Business School Case 9-394-085 Courseware 9-307-703
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Marriott Corporation Based on No Spin-out of Marriott International Financial Projections Change the highlighted numbers only Annual growth of $ sales through existing units (assuming general inflation of 3% per year)
5.4% Forecast 1982-1989 Average 7.6%
1992 5.0%
1993 5.5%
1994 5.8%
1995 6.0%
Available for sale at Dec. 1991 $ 1,524 $ $
1992 100 $ 0.28 $
1993 120 $ 0.28 $
1994 150 $ 0.28 $
1995 180 0.28
1991 8,331 $ 367 222 145 63 82 6 76 94.5 0.80 $ 1.7
1992 8,781 $ 439 206 233 95 137 17 120 93.6 1.28 $ 2.1
1993 9,255 $ 509 197 312 128 184 17 167 93.6 1.78 $ 2.6
1994 9,755 $ 566 183 383 157 226 17 209 93.6 2.23 $ 3.1
1995 10,282 617 163 454 186 268 17 251 93.6 2.68 3.8
1992
1993
1994
1995
137 $ 270 0 407
184 $ 270 0 454
226 $ 270 0 496
268 270 0 538
EBIT % Sales
Assets Sales ($ millions) Common Dividend Per Share
Sales EBIT Interest (net) Pre-tax profits Tax @ 41% Net income Preferred dividend Net income, common Shares outstanding (millions) Earnings per share Times Interest earned
$
$
Statement of Cash Flows: Cash Flow from Operating Activities Net income Depreciation Change in net working capital Total from Operating Activities Cash Flow from Investing Activities Capital expenditures Sale of assets Total from Investing Activities Cash Flow from Financing Activities Preferred dividend Common dividend Total Cash Available for Debt Repayment Cumulative Debt Repayment
Partial Balance Sheet Interest bearing debt Owner's equity Total Capital Debt as % capital
$
$ $
12/31/1991 3,031 $ 679 3,710 $ 82%
(350) 100 (250)
(350) 120 (230)
(350) 150 (200)
(350) 180 (170)
(17) (26) (43) 114 114
(17) (26) (43) 181 295
(17) (26) (43) 253 547
(17) (26) (43) 325 872
1992 2,917 $ 773 3,690 $
1993 2,736 $ 914 3,650 $
1994 2,484 $ 1,096 3,580 $
79%
75%
69%
1995 2,159 1,321 3,480 62%
