You have been hired as an independent financial analyst to evaluate the performance of a hospitality corporation. Please choose a company from the list provided on page 3 and answer the following questions after analyzing your company’s financial statements.

1.  Use the company’s last 5 years quarterly or annual historical data to calculate the following (for each of the quarters or years):

• Liquidity ratios – Current ratio, quick (acid) ratio, and working capital.

• Turnover ratios – Inventory turnover and asset turnover ratios.

• Solvency ratios – Debt ratio, debt to equity ratio, and times interest earned

• Profitability ratios – Profit margin, return on assets, and return on equity.

• Investor ratios – P/E ratio, dividends payout ratio, and dividend yield.

Highly recommend you use tables, charts, graphs, figures, etc. in Appendices.

Based on the analysis of each ratio category what can you say about the company’s financial performance, and what would be your recommendations for each ratio category?

2. What assets did the company invest in over the last five years? How much was the amount of investment for each of the five years?

3. On the basis of your assessment of these investments and company information, what do you think SHOULD be the future strategy of this company?

4. Please SUMMARIZE your responses to questions 1-3 in no more than 1⁄2 page.

Answer rating: 100% (QA)

1 Based on the company s financial statements the company s liquidity turnover sol ven cy and profitability ratios are all within an acceptable range I recommend that the company continue to monitor t... View the full answer