Decision Making With Financial Information
“You have been contracted by the Board of Directors of Hospitality and Tourism Plc. They are looking to expand their company through the acquisition of another and require your assistance in identifying a good target.”
SEMESTER 1 REPORT 2009
Decision Making With Financial Information
“You have been contracted by the Board of Directors of Hospitality and Tourism Plc. They are looking to expand their company through the acquisition of another and require your assistance in identifying a good target.”
Executive Summary
The purpose of this report is to identify an opportunity for investment for Hospitality and Tourism Plc and justify why this is a good choice. In order to do this, the report will look at Millennium Hotels and will assess profitability, liquidity, gearing and efficiency by using ratio analysis, common size analysis, comparative analysis and index and trend analysis. The report will then go on to assess the current economic situation and will offer recommendations as to whether or not to buy the company. The research for the report came from the core class textbook and also the internet, the main limitations were found to be the time scale and word limit. The report is split into two sections: Financial statement analysis and Economic analysis. The financial statement analysis found that the revenue of Millennium Hotels is increasing, however, due to increasing expenses, the profitability is decreasing. The gearing of the company was found to be extremely low which is an advantage in the current economic climate. The company was found to be in a good position with regards to liquidity as the assets are sufficient to cover the liabilities. Finally, the efficiency of the company could be
Decision Making With Financial Information | 11/30/2009
improved as the creditor payment period is quite high. The economic analysis gives a background to the recession and how it came about and also looks at the... [continues]
“You have been contracted by the Board of Directors of Hospitality and Tourism Plc. They are looking to expand their company through the acquisition of another and require your assistance in identifying a good target.”
SEMESTER 1 REPORT 2009
Decision Making With Financial Information
“You have been contracted by the Board of Directors of Hospitality and Tourism Plc. They are looking to expand their company through the acquisition of another and require your assistance in identifying a good target.”
Executive Summary
The purpose of this report is to identify an opportunity for investment for Hospitality and Tourism Plc and justify why this is a good choice. In order to do this, the report will look at Millennium Hotels and will assess profitability, liquidity, gearing and efficiency by using ratio analysis, common size analysis, comparative analysis and index and trend analysis. The report will then go on to assess the current economic situation and will offer recommendations as to whether or not to buy the company. The research for the report came from the core class textbook and also the internet, the main limitations were found to be the time scale and word limit. The report is split into two sections: Financial statement analysis and Economic analysis. The financial statement analysis found that the revenue of Millennium Hotels is increasing, however, due to increasing expenses, the profitability is decreasing. The gearing of the company was found to be extremely low which is an advantage in the current economic climate. The company was found to be in a good position with regards to liquidity as the assets are sufficient to cover the liabilities. Finally, the efficiency of the company could be
Decision Making With Financial Information | 11/30/2009
improved as the creditor payment period is quite high. The economic analysis gives a background to the recession and how it came about and also looks at the... [continues]
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