EXHIBIT 12
THE PROMUS COMPANIES INCORPORATED
COMPUTATIONS OF RATIOS
(IN THOUSANDS, EXCEPT RATIO AMOUNTS)
FISCAL YEAR
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1994 1993 1992 1991 1990
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RETURN ON REVENUES-CONTINUING
Income from continuing
operations.................. $ 49,984 $ 74,867 $ 49,577 $ 34,499 $ 30,707
Revenues...................... 1,339,406 1,020,645 894,384 863,385 875,335
Return...................... 3.7% 7.3% 5.5% 4.0% 3.5%
RETURN ON AVERAGE INVESTED
CAPITAL
Income from continuing
operations.................. $ 49,984 $ 74,867 $ 49,577 $ 34,499 $ 30,707
Add: Interest expense after
tax......................... 46,993 43,848 46,543 55,301 52,958
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$ 96,977 $ 118,715 $ 96,120 $ 89,800 $ 83,665
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Average invested capital--
continuing operations....... $1,229,524 $1,060,641 $ 909,011 $ 861,653 $809,733
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Return...................... 7.9% 11.2% 10.6% 10.4% 10.3%
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RETURN ON AVERAGE EQUITY
Income before extraordinary
items and cumulative effect
of change in accounting
policy...................... $ 86,303 $ 91,793 $ 51,418 $ 30,011 $ 23,353
Average equity................ 606,009 474,733 395,212 289,361 231,550
Return...................... 14.2% 19.3% 13.0% 10.4% 10.1%
CURRENT RATIO
Current assets................ $ 171,835 $ 139,842 $ 114,670 $ 91,289 $ 75,257
Current liabilities........... 295,083 188,258 122,935 178,433 161,243
Ratio....................... 0.6 0.7 0.9 0.5 0.5
RATIO OF BOOK EQUITY TO DEBT
Book equity as of December
31.......................... $ 623,437 $ 536,037 $ 427,930 $ 365,494 $213,289
Total debt, including
discontinued operations..... 919,727 841,964 881,325 887,468 956,947
Ratio....................... 0.7 0.6 0.5 0.4 0.2
RATIO OF MARKET EQUITY TO DEBT
Market equity as of December
31.......................... $3,161,681 $4,678,304 $1,867,828 $ 743,369 $399,795
Total debt, including
discontinued operations..... 919,727 841,964 881,325 887,468 956,947
Ratio....................... 3.4 5.6 2.1 0.8 0.4