To analyze Accor's financial performance, we'll compute various financial ratios using the provided information. Financial ratios help
Question:
To analyze Accor's financial performance, we'll compute various financial ratios using the provided information. Financial ratios help in assessing a company's profitability, efficiency, liquidity, solvency, and market performance. Let's calculate some key ratios step by step:
Profitability Ratios: Gross Profit Margin:
Gross Profit Margin = (Revenue - Operating Expense) / Revenue
GrossProfitMargin= (594859484134)100%=(59481814)100%30.51%
Operating Profit Margin:
Operating Profit Margin = (Operating Profit Before Tax) / Revenue
Operating Profit Margin= (594812)100% 0.20%
Net Profit Margin:
Net Profit Margin = (Profits After Taxes) / Revenue
Net Profit Margin= (5948404)100%6.79%
Liquidity Ratios: Current Ratio:
Current Ratio = Current Assets / Current Liabilities
CurrentRatio=233623100.99
Quick Ratio:
Quick Ratio = (Current Assets - Inventory) / Current Liabilities (Inventory information is not provided, so we cannot compute this ratio.)
Solvency Ratios: Debt-to-Equity Ratio:
Debt-to-Equity Ratio = Total Liabilities / Total Equity
Debt-to-EquityRatio=394986782.20
Efficiency Ratios: Asset Turnover:
Asset Turnover = Revenue / Total Assets
Asset Turnover= (86785948)0.69
5. Strategic Recommendations [6 Marks] Based on your analysis, propose strategic recommendations to the CEO of Accor regarding the future direction of Accor's strategy. Provide justifications for each recommendation