Hospitality Company Financial Analysis

HMGT 618 – Uniform Systems for the Hospitality Industry

SPRING 2020

Team Project:  Assignment B

Hospitality Company Financial Analysis

Each team will:

1. Track the financial performance of their assigned hospitality company over the most recent three years
2. Assess its financial strength

iii.  Discuss the major financial challenges that the company faces and propose strategies for addressing these issues.

Specifically:

1. Obtain financial performance data (from annual and other reports) for the most recent three years.

2. Compute key financial and operating ratios for these three years:
   1. Revenue growth
   2. Earnings growth
   3. Current ratio
   4. Operating Cash Flow to Current Liabilities ratio
   5. Solvency ratio
   6. Debt-Equity ratio
   7. Property and Equipment ratio
   8. Total Asset Turnover ratio
   9. Profit Margin
   10. Return on Equity
   11. Earnings per Share
   12. Price Earnings ratio
   13. Key hospitality-specific ratios

3. Assess the financial strength of the company: Provide a rating (1= very weak, 10 = very strong) with explanations:

• Growth potential (revenue, earnings)
• Liquidity
• Solvency
• Activity
• Profitability
• Investor
• Hospitality-specific ratios
• Overall financial strength

4. Discuss the major financial challenges the company faces and your proposed strategies to address challenges.

Due date:  Thursday April 30, 2020