Ratio Based Performance Analysis Of Marriot Versus Intercontinental Finance Essay - Free Essay Example

Sample details Pages: 7 Words: 2068 Downloads: 5 Date added: 2017/06/26 Category Finance Essay Type Narrative essay Did you like this example? Marriott International, Inc. is one of a leading worldwide hospitality company with its heritage being traced to a root beer stand opened in Washington, D.C., in 1927 by J. Willard and Alice S. Marriott. Today, Marriott International has about 3,100 lodging properties located in the United States and 67 other countries and territories across 17 lodging and vacation resort ownership brands.This group was established in the year 1927 .This is basically a public limited company . InterContinental Hotels Group is a global hotel group whose brands include Inter-Continental Hotels and Resorts, Crowne Plaza Hotels and Resorts, Holiday Inn, Holiday Inn Express and Staybridge Suites.The intercontinental brand was founded in 1946 by pan American airlines,and currently owned by Philp Charles naughton . IHG is primarily engaged in managing hotels owned by other parties and inÂÂ  franchisingÂÂ  its hotel brands. That is, it sells its expertise in hotel management, systems, and marketing, while leaving investment in real property, which is far more capital intensive, requires different skills, and has a different risk profile, primarily to its partners. ÂÂ  As of 2007 it franchises over 3,200 hotels, manages over 510 and owns only 18.The owned hotels do however include many of the key properties of companys flagship InterContinental brand. This group basically runs by partnership Don’t waste time! Our writers will create an original "Ratio Based Performance Analysis Of Marriot Versus Intercontinental Finance Essay" essay for you Create order Comparative ratio based Performance analysis of Marriot vs Intercontinental group We as group strived hard to compare all the important ratios of both the hotel groups. The ratios that were focussed were profitability, liquidity, efficiency, investors and gearing ratios. The ratios of two years, 2007 and 2008 were calculated to come to a point where we could determine the situation of both the companies. Below I have summarised and interpreted the ratios that we have strived to calculate, which gives us a financial picture of both the companies. Profitability ratio assessment. Profitability ratio means, how much the firm is capable to generate profit. Under the calculation of profitability ratio The gross profit margin ratio determines the profit a company from its cost of sales. Gross profit margin for Marriott is went down from 7.09% to 6.37% , because there total income went down from 150811m to 149482m . In other case with IHG there Revenue increased as a result even the gross profit has increased. The net profit margin ratio is calculated by finding the net profit as a percentage of the revenue. Low profit margin shows a low margin of safety The revenue of Marriott group has gone down but their percentage of net profit is increasing as they have controlled their expenses on the other hand the revenue of IHG is increased but the ratio has gone down because their is greater increase in their expenses. Source: group analysis notes Liquidity ratio is concerned with the ability of the company or groups to meet short-term obligations. Current ratio says how fast the assets are turned into cash against the liabilities. The ideal current ratio is 2:1.Acid test ratio is better tool to identify exact liquidity as it reduces stock from the current assets the ideal ratio is 1:1.Considering analyzing both the groups rapidly on liquidity ratio Marriotts is doing better than IHG as it has more assets than liabilities looking at both the years even though we detected the stock from the current assets in acid test ratio .Marriott group is in the better position for the investor shareholders to invest for both the years 2007 and 2008 . Even though there was recession period both the groups showed the significant figures in liquidity .this shows that both the groups are well established universally. Source: group analysis notes Effeciency ratio This ratio measures, how efficiently the company is utilizing its assets .In this we can see that Inventory :The inventory turnover ratio for IHG in 2007 was 4 DAYS as compared to the year 2008 which was 3 days. Generally a low number of days inventory is held are a sign of efficient management. The faster the inventory the less cash that is tide up in the inventory. However this is important that inventory is not too low because this would indicate under stocking of inventory. In 2008 the number of days inventory was tied up was less which shows that IHG had improved on selling its inventories, quicker than in the year 2007 Receivable collection period: we can see here that in the year 2007 ,the receivable collection period was 19 days for the Marriot ,which was improved to 14 days in 2008.This shows that Marriot has a good receivable collection period ,which seemed to have improved more in the year 2008.On the other hand The receivable period is not appreciable ,when compared to the Marriott. The receivable collection period for IHG was 86 days ,which is not good from the part of company ,because their cash is still tied up in the market. Moreover its collection period increased to 72 days in 2008 , which shows a slight improvement in their collection period. Asset turnover ratio : For the Intercontinental in 2007,we can see that they had more assets (1807), but their revenue (883) is less as compared to assets,that means,that they have assets, but their business is less, which shows ,that they might have to sell some assets or take up a new strategy. Whereas in 2008,we can see that ,they worked on a strategy of buying new assets (2123) ,which increased their revenue(1278),but still they are way behind Marriott in this case. For Marriott,we can see that ,their revenue was8 times greater than the assets ,which is appreciable,but in 2008,theirrevenue went down, and also it shows an increase in Marriotts assets in 2008 with a slide in revenue,but still 7:1 is good as it shows 7 time revenue than assets. Investors ratio ÂÂ  commonly used by investors to assess the performance of a business as an investment ROCE ratio for Marriott is fallen as their liabilities are gone up on the other hand there is a bit change in the liabilities for IHG . This ratio is for Investors because higher ratio will trend them to invest more. ratio shows the returns over the investments made by the shareholders we here have calculated Return o Equity for IHG Group and figures give us the brief idea of how well the return on the equity of IHG group are. Since we dont have the details for Marriott Group we conclude that though the percentage is for IHG is low it gives better benefits to its shareholder. Gearing is a measure of financial leverage, demonstrating the degree to which a firms activities are funded by owners funds versus creditors funds. Here we can see that, in 2007 IHG had a gearing ratio of 95.82% his is higher then the 50%, but in 2008 the scenario got worse, as it went up to 107.45%. This means that they had more debt over their capital employed.On the other Marriot had very little debt against their capital employed Which means they invested their money without borrowing from out side. Interest cover: in 2007 the interest cover ratio for the Marriott was 1.8 times which is not very good as they were in weaker position to pay the interest. Whereas in the year 2008 the interest cover ratio increased to 2.3 time which is appreciable. This shows either their profit might have increase or their expenses might have decrease On the other hand IHG had a very better interest cover ratio in 2007 but in 2008 they have decrease by 3.5 times of interest cover, which show either their expenses went up or they might loss profit for business Source: group analysis notes Working capital Positive working capital means that the company is able to pay off its short-term liabilities.ÂÂ  NegativeÂÂ  working capital means that a company currently is unable toÂÂ  meetÂÂ  its short-term liabilities withÂÂ  its current assetsÂÂ  .If a companys current assets do not exceed its current liabilities, then it may run into trouble paying back creditors in the short term. The worst-case scenario is bankruptcy.ÂÂ  A declining working capital ratio over a longer time periodÂÂ  couldÂÂ  also be a red flag that warrants further analysis. For example, it could be that the companys sales volumes are decreasing and, asÂÂ  a result, its accounts receivables number continues to get smaller and smaller. Here we can see that Intercontinental had 135 million gbp in 2007 which increased to 145 million GBP .On the other hand Marriotts working capital is many times more than that of IHG,which shows that it has a strong base of working capital, but we can see that its working capital decreased from 7606 ml gbp to 5153 ml which is a trigger for the Marriot for further analysis into their account,but still when it is compared to Marriot, ,intercontinental has to improve its working capital Source: group analysis notes Conclusion: Comparing all the ratios, It is evident that Marriot is in a healthier position than Interciontinental.Ratio analysis of Marriot showed a balanced state, financially in the year 2007 and 2008 as compared to Intercontinental in the same years. On the whole Marriott is healthier and has driven in an efficient and effective manner during these financial years, However IHG has diverse approach due to their colossal volume of business. As far as the future prediction is concerned, Marriot has to maintain its current state of balance as it showed promising figures in collection period ratio, asset turnover ratio and good working capital. On the other hand Intercontinental has to improve on various aspects as it showed alarming figures under many ratios, such as lengthy debt collection period, less working capital and alarming gearing ratios. Alarming figures pointed to the high ongoing debt of the company, which might still worsen in future years. Based on groups final thought Group work experience The most imperative part of the whole research and analysis was our group effort .We were fortunate enough to have all the members who acted as power players during the whole course.Although every one is from distinctive educational background,it didnot become a hurdle to us as our concepts were very clear,because of the professional and indepth knowledge imparted to us by our course lecturer.This helped us take on different responsibilities pre- presentation and report.To implement this more accurately we maintained a timetable for all our group meetings and a full attendance of all the members in all our group meetings showed the level of commitment everyone was ready to expend.During the course of our meetings ,we would discuss on the responsibilities assigned and would note down their findings in one place,so as to improve more on it before putting it into our final presentation and reports . Overwhelming the weaknesses and identifying the strengths As every project has some weakness to overcome,we also had some weaknesses during the course.As we were very confident in our calculations,we found some difficulties in assessing the and analysing the ratios which was also a very important part of our presentation and report.We overcame this by thourogh reading of our lecture notes and reffering Peter Atrill tet book.This helped us to understand in detail , how to compare and analyse both the companies. Also we got a good assistance from our team leader(Neha) and one of our group member(Hasan) as they are from finance background. They helped us to ease the concept of analysis in more easy and understandable way from a sophisticate one .This helped every one to analyse and compare both the companies in depth.We also got an appreciable helping hand from one of our team member(Simran),who made the work easy for us ,by preparing tentative slides ,at the same when we discussed our findings .Speaking of our strengths ,i would say that ,we as a group were successfull in utilising the best of everyones capability.I would say that we had to utilize our strenghths,for eg:good understanding of accounting terms by Hassan helped us to compare and analyse the companies in a better way. Contribution of our group Contribution of every group member has been immense. Choosing a person, who contributed the least ,would be vey unfair as everyone in the group contributed their best .Most important thing to mention is the amount of enthusiasm every one had to get this task completed .The example of this is the meeting,in which no one would stay absent as everybody were excited to propose their findings and home work during the meeting and fortunately there has been no meeting ,where any person has not putforth his assigned home work .Â

Cry the Beloved Country Major Works Data Sheet Essay example

Major Works Data Sheet Title: Cry, the Beloved CountryAuthor: Alan PatonDate of Publication: 1948Genre: Social Criticism | Relevant Biographical Information About the Author: * White * Born in Pietermaritzburg, South Africa in 1903 * Father was Scottish and mother was South African of English heritage * Worked at a reformatory with black youths | Historical information about the period of publication: * South Africa already colonized by Europeans * Rampant racism * Introduction of apartheid in 1948 | | | Characteristics of the Genre * Show author’s disenchantment with a certain aspect of society * Deals with racism, sexism, homophobia, etc. * Usually a call for action, to get readers to support a cause or†¦show more content†¦| Describe the Author’s Style * Poetic * Descriptive * Sometimes a little bitter * Uses South African colloquialisms and vocabulary | An example from text that denotes author’s style * And now for all the people of Africa, the beloved country. Nkosi Sikelel’ iAfrika, God save Africa. But he would not see that salvation. It lay afar off, because men were afraid of it. Because, to tell the truth, they were afraid of him, and his wife, and Msimangu, and the young demonstrator. And what was there evil in their desires, in their hunger? That man should walk upright in the land where they were born, and be free to use the fruits of the earth, what was there evil in it? . . . They were afraid because they were so few. And such fear could not be cast out, but by love. | Memorable Quotes | Quotation * â€Å"The white man has broken the tribe. And it is my belief—and again I ask your pardon—that it cannot be mended again.†Ã¢â‚¬â€Msimangu * â€Å"I see only one hope for our country, and that is when white men and black men . . . desiring only the good of their country, come together to work for it†--Msimangu * â€Å"Cry for the broken tribe, f or the law and the custom that is gone. Aye, and cry aloud for the man who is dead, for the woman and children bereaved. Cry, the beloved country, these things are not yet at an end.†Ã¢â‚¬â€Arthur Jarvis | Significance * Talks about how the white’s policies have destroyed the oldShow MoreRelatedRevenue Model Analysis of Passenger Traffic and Cargo Traffic in Air India Ltd10535 Words   |  43 PagesCertified that this project report† REVENUE MODEL ANALYSIS OF PASSENGER TRAFFIC AND CARGO TRAFFIC OF AIR INDIA LTD† with respect to the bonafide work of Mr. N.ANANDRAJ, Reg. No. 21107631002, Final year student of Rajalakshmi Engineering College carried out under my supervision. Certified further that, to the best of my knowledge, the work reported herein does not from any part of other project report or dissertation on the basis of a degree or award was concerned on an earlier occasion onRead MoreExploring Corporate Strategy - Case164366 Words   |à ‚  658 Pagescase has been chosen. Where the text and cases are being used as the framework for a strategy programme (as we hope they will), it is essential that students are required to undertake additional reading from other sources and that their ‘practical’ work is supplemented by other material as mentioned above. ââ€"  ââ€"  ECS8C_C01.qxd 22/10/2007 11:54 Page 600 600 Guide to the main focus of cases in the book Introduction to strategy Business environment: general Five forces analysis

Appropriate Change Management

Question: Discuss about the Appropriate Change Management. Answer: Introduction: Change is often prone to resistance from employees which need to be adeptly dealt with using appropriate change management approach (Hayes, 2014). One such enabling modelling that can be used here is the Lewis change management model which can be implemented through the following stages. Unfreeze In this particular stage, emphasis is given on preparing the employees for the intended change. In the given case, it is imperative that the various apprehensions of the SSN Edna should be brought to light and these concerns should be dealt with in a prompt manner. Further, the various advantages of electronic documentation should be explained to her and also the department. These would include greater accuracy in records, standardised formats and quicker retrieval which shall enhance the overall service level and thereby enhance the quality level. Further, with regards to the forms being difficult to read, training could be way out (Cummings and Worley, 2014). Once, the various concerns are addressed and the department led by Edna is willing to change, the next stage begins. Change This is the stage where the change in actually implemented and hence the manual records are converted into electronic forms. The various implementation issues should be promptly addressed backed by two-way communication (Hayes, 2014). Further, training should be accorded to employees to enhance familiarity with usage of electronic records. Refreeze Once the shift to electronic records is complete and people are familiar with electronic records through requisite training, then these become part of the routine. Thus, the formulation of electronic records of patients dealt on home visits becomes the new policy amongst staff (Cummings and Worley, 2014). References Cummings, T. and Worley, C. (2014),Organization development and change (10th edition), New York: Cengage learning. Hayes, J., 2014.The theory and practice of change management (4th edition), London: Palgrave Macmillan

Privilege from being an asian girl

It is generally accepted that Asian countries have low regard to the girl child. As a result of their low perception on girls, most Asians do not take their girls to school as they regard it as a waste of resources. Majority of them believe that girls should not go to school, but remain at home with their mothers to be taught on how to look after the kids and cook.Advertising We will write a custom essay sample on Privilege from being an asian girl specifically for you for only $16.05 $11/page Learn More Lack of education is the reason that has resulted to most of Asian women becoming house wives. As a result of the training they get, most of Asian women are caring and responsible. They have great respects to their parents and the elderly. They usually devote most of their time in looking after their children. They are very welcoming and speak very politely to everyone. Thus they are regarded as a model woman for many men. Moreover they are known to be v ery understanding and patient and stay to their husbands and support them despite occasionally being let down by them. Some people link their great patience and understanding to the training that they receive while still very young, while others associate it with their inadequate education that makes them helpless and vulnerable (Tsui 20). China is becoming the world’s biggest market, and thus more companies from the west are expanding their business operations to this new niche. In addition, many companies are more than willing to expand to China due to the low cost of production associated with it as a result of the presence of cheap labor. Expansion of these companies to China means more job opportunities for the Chinese. Due to the inadequate education of many Chinese girls, most of them are employed as casual laborers. Therefore, being among the few Chinese girls that are educated and well conversant in both written and spoken Chinese and English language gives me an upp er hand than most of my fellow Chinese girls to get a very reputable job with these multinational companies. My parents both of them having being educated ensured that I received proper and quality education. They did not become victim to the perception held by many people during their days that girls’ education was not important (Importance of girls’/women’s education par.5). An interview with one of my friend who did not have the opportunity to go to school revealed how desperate some Chinese women are. The name of the lady that I interviewed is Terry and she is married to a Chinese Man referred as Tom and they have one kid.Advertising Looking for essay on cultural studies? Let's see if we can help you! Get your first paper with 15% OFF Learn More When I asked her how she was fairing after parting with her for about ten years, when I left China to go to US to advance my studies. This is what she had to say, â€Å"I have realized how important ed ucation is for us women and with the current husbands that are less supportive and abusive.† Thus, the education that I received has helped me get a competitive edge to many Chinese girls that missed this opportunity. Majority of these ladies can only be employed as casual laborers while I stand a better chance to compete with my fellow Chinese men for the white color jobs which are more rewarding. Thus, my failure to get married in my early days like my other friends has greatly helped me advance my education. Most of my fellow friends are current married, but unhappy as noted from Terry’s remark that the current husbands are abusive and unsupportive. In the former days Chinese girls were regarded as being less attractive as they were mostly taken as being boring, conservative and unsexy, but this perception have changed nowadays with the mass education of the Chinese girl child .Currently the Chinese have realized the importance of taking their girls to school. Curren tly there are many Chinese women that are very educated. Others have even gone to further their carriers in the U.S. and U.K. These women stand better opportunity to secure lucrative job both in these countries or back in China. Education has empowered the Chinese women financially even to be ranked among the leading richest women in the globe. Zhang Yin who is a Chinese woman is ranked as the leading richest self made woman in the world. She is the initiator of a giant paper recycling plant in China that is worth billions of dollars. Similarly, among the 20 richest women in the world, 11 are Chinese. Thais illustrates how education can transform individuals and the society at range (Whats On Ningbo par 3-8). The high preference of free and open worldwide economy makes investors shun away from investing in those countries that have high illiteracy or wide gap in education attainment between men and women. This is because the prevalent great advancement in technology has resulted to firms looking for skilled labor rather than unskilled one.Advertising We will write a custom essay sample on Privilege from being an asian girl specifically for you for only $16.05 $11/page Learn More This is as a result of the high automation of most of the tasks in many organizations and corporate to enhance efficiency and production. Therefore, even those countries that did not perceive the girls’ education as being important like china has realized how significant it is and enrolled their girls to school in large numbers up to the highest level. This has greatly helped the Asian countries and especially China to acknowledge the importance of the education of the girl child. The government and relevant organizations are currently extremely campaigning for the education of the girl child to increase the women literacy in China and also bridge the wide education attainment gap that exists between the men and women. This will be a very strategic move for the government to strengthen its vibrant economy (Tsui 20). The education of the Chinese girls has greatly transformed people’s perception about them as being unattractive and conservative. Empowering them academically has enabled the Chinese women to become more independent, assertive and social. In addition, Chinese girls are still very good in executing their family duties such as being good in cooking, looking after their husbands and kids and particularly ensuring they receive appropriate education. For instance, being a Chinese girl that is well educated and having lived in the U.S., have helped me appreciate how the Chinese girl child has transformed such that nowadays many people from all over the world and especially men are very eager to learn more about the Chinese girls and most of them have ended marrying them due to their exceptional characteristics. Works Cited Importance of girls’/women’s education. 2008 Web.https://www.right-to-educatio n.org/node/187 Tsui, Ming. The Only Child and Educational Opportunity for Girls in Urban China. Hong Kong: Mississippi State University, 2010, print. Whats On Ningbo, â€Å"Zhang Yin, CEO of China’s Nine Dragons Paper, is world’s richest woman.† 2010. Web.Advertising Looking for essay on cultural studies? Let's see if we can help you! Get your first paper with 15% OFF Learn More This essay on Privilege from being an asian girl was written and submitted by user Valerie Kent to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.