Case 24

------------------------------------------------- Top of Form paradise Hotels Financial Ratios| relentability| 2002| 2003| 2004| 2005| 2006| Operating proceeds Margin| 0.20| 0.25| 0.20| 0.22| 0.27| Re unfreeze on Assets| 0.01| 0.02| 0.03| 0.04| 0.04| Return on stockholder Equity| 0.02| 0.03| 0.06| 0.06| 0.07| Net Profit Margin| 0.11| 0.13| 0.16| 0.18| 0.20| liquidity|  |  |  |  |  | on-line(prenominal) Ratios| 1.28| 1.11| 1.30| 1.18| 1.77| Working Capital|  $         75.00 |  $         36.20 |  $         97.20 |  $         73.70 |  $      272.20 | Leverage| | | | | | Debt to Assets| 44%| 45%| 47%| 44%| 47%| Debt to Equity| 0.78| 0.81| 0.88| 0.79| 0.88| Times Interest suck in| 2.92| 2.93| 2.95| 5.73| 8.41| Profitability Ratios Using the Operating Profit Margin congruity and the Net Profit Margin ratio, we can see that the geltability of the unswerving without regard to interest charges and incom e taxes. The trend of this ratio should be upward. For Shangri-La Hotels, we see that there are positive loot for the long time 2002-2006. The trend is upward excluding year 2004 where operating profit coast fell by 5%. This can be attributed to the gigantic amplification of the alliance during this time.

  The take place key on assets and the slip away on equity ratios show the return on investments. The piteous return on assets figures shows that the firm has not had a practiced return on the total investments. However, given the amount of expansion the company has under-taken, and given the fact that they are in an assiduity that requires bulky amount of capital, this is not surprising. The same concept work for the ! return on stockholders equity numbers.  These numbers are very upset because of the amount of debt the company has taken. It is not a huge deal, however, as long as the company uses its debt wisely and begins to turn large profits and returns for investors in the coming years. Liquidity Ratios To hang at the...If you want to get a full essay, assure it on our website: OrderEssay.net

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