Hotel Financial Analysis
Waterfront Mactan Casino Hotel, Inc. (WMCHI)
ANALYSIS OF FINANCIAL PERFORMANCE Profitability Analysis
2008 0.084266313 0.046495453 0.009816935 0.027953925 2007 0.115098173 0.042234313 0.018062622 0.054801237
Profitability Analysis Return on sales Return On Assets Return On Equity
WMCHI’s net income for 2008 improved by .004 points, but reflected a 50% decline on its ability to use its assets as a source of revenue. Moreover, because of the company’s heavy reliance on borrowings from financial institutions to support its expansion, the return on their stockholder’s equity also went down by more than 50% of 2007’s figures. We can surmise that the company’s operating profit is not sufficient to give its shareholders a satisfying level of retained earnings. What is noticeable is their consistent effort to include the revaluation of surplus property and equipment as an equalizer to their equity level.
Liquidity Analysis
Liquidity Analysis Current Ratio Acid Ratio Current Assets to Total Assets Ratio of Each Current Cash and Cash equivalents Trade & other Accounts Receivable - net Inventories Prepaid expenses and other current assets - net(Notes 8 and 14) Due from a related party Receivable TurnOver Merchandise Inventory(Or Finished Goods) TurnOver Number Of Days Sales Number of Days Supply Working Capital Turnover Cash Defensive Ratio Current Liability Turnover 2008 117.3370297 0.53553076 0.527128819 0.23881858 0.026967364 0.072648861 0.011373797 0.004315201 0.884694776 9.463685998 13.59827423 38.04014631 26.47394764 -0.976096454 27.45949741 0.456322877 2007 99.48689009 0.529819623 0.521567958 0.253578733 0.038227289 0.106578605 0.010017119 0.00555736 0.839619627 15.82459153 28.32739213 22.74940237 12.7085472 -1.900492145 17.57199055 0.893574113
A closer look at WMCHI’s ability to pay existing financial commitments through its liquid assets reflects a weakness as seen from both 2007 and 2008 computed figures of current ratio and acid test. What is also
ANALYSIS OF FINANCIAL PERFORMANCE Profitability Analysis
2008 0.084266313 0.046495453 0.009816935 0.027953925 2007 0.115098173 0.042234313 0.018062622 0.054801237
Profitability Analysis Return on sales Return On Assets Return On Equity
WMCHI’s net income for 2008 improved by .004 points, but reflected a 50% decline on its ability to use its assets as a source of revenue. Moreover, because of the company’s heavy reliance on borrowings from financial institutions to support its expansion, the return on their stockholder’s equity also went down by more than 50% of 2007’s figures. We can surmise that the company’s operating profit is not sufficient to give its shareholders a satisfying level of retained earnings. What is noticeable is their consistent effort to include the revaluation of surplus property and equipment as an equalizer to their equity level.
Liquidity Analysis
Liquidity Analysis Current Ratio Acid Ratio Current Assets to Total Assets Ratio of Each Current Cash and Cash equivalents Trade & other Accounts Receivable - net Inventories Prepaid expenses and other current assets - net(Notes 8 and 14) Due from a related party Receivable TurnOver Merchandise Inventory(Or Finished Goods) TurnOver Number Of Days Sales Number of Days Supply Working Capital Turnover Cash Defensive Ratio Current Liability Turnover 2008 117.3370297 0.53553076 0.527128819 0.23881858 0.026967364 0.072648861 0.011373797 0.004315201 0.884694776 9.463685998 13.59827423 38.04014631 26.47394764 -0.976096454 27.45949741 0.456322877 2007 99.48689009 0.529819623 0.521567958 0.253578733 0.038227289 0.106578605 0.010017119 0.00555736 0.839619627 15.82459153 28.32739213 22.74940237 12.7085472 -1.900492145 17.57199055 0.893574113
A closer look at WMCHI’s ability to pay existing financial commitments through its liquid assets reflects a weakness as seen from both 2007 and 2008 computed figures of current ratio and acid test. What is also