Challenging for Many of the Term Paper

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34 billion = 1.02). The ratio for 2009 was calculated by: dividing $2.851 billion into $1.142 billion ($2.851 billion / $1.142 billion = 2.09). ("Marriot 2009 Annual Report," 2010) The Blackstone Group has a debt ratio for: 2008 of 2.81 and 2009 of 1.50. The number for 2008 was calculated by dividing $9.489 billion into $3.37 billion ($9.489 billion / $3.37 billion = 2.81). The ratio for 2009 was determined by dividing $9.049 billion into $6.017 billion ($9.049 billion / $6.017 billion = 1.50. ("The Blackstone Group 2009 Annual Report," 2010)

When you compare the debt ratio of Marriot with that of the Blackstone Group, they both have a debt ratio above 1.0, indicating that they have more assets than debt. With Marriot this number increased between 2008 and 2009, highlighting that the company has been taking aggressive steps to reduce the underlying amounts of debt. Evidence of this can be seen by looking no further than the ratio rising from 1.02 to 2.09.
While the Blackstone Group, saw their debt ratios decrease between 2008 and 2009. Where, their debt ratio showed a reading of 2.81 for 2008 and 1.50 for 2009. This is significant, because it shows how two different strategies were used, when it came to the different companies. In the case of Marriot, they wanted to reduce their underlying amounts of debt. While Blackstone Group, was continuing to make purchases of other companies, which would cause the overall debt ratio to decline.

Clearly, when looking at the debt ratio of both companies, it highlights how Marriot is the strongest investment from a debt standpoint. This is because they have been reducing their underlying amounts of debt. The Blackstone Group has been increasing the overall amounts of debt. In this case, one could infer that the debt levels rose at the Blackstone Group, because they were seeking to.....

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