This website uses cookies to ensure you have the best experience. Learn more

The Financial Analysis Of Ihg

4851 words - 19 pages

Content1. Introduction2. Company Background3. Profitability & Return On Capital3.1 Gross Profit Margin and Net Profit Margin3.2 Return On Equity (ROE) and Return On Capital Employed (ROCE)3.3 Asset Turnover4. Liquidity & Working Capital4.1 Current Ratio4.2 Quick Ratio4.3 Payables Payment Period4.4 Receivables Collecting Period4.5 Inventory Turnover Ratio5. Long- term Solvency5.1 Debt/Equity Ratio5.2 Gearing Ratio5.3 Interest Cover6. Shareholders' Investment6.1 Earning Yield6.2 Price- Earnings Ratio6.3 Dividend Cover6.4 Dividend Yield7. Trend Analysis7.1 Return On Equity (ROE) Ratio7.2 Net Profit Margin7.3 Total Asset8. Post Balance Event9. Group Reflective10.Bibliography11. Appendix1. IntroductionThe purpose of writing this report is to analyse financial performances of InterContinental Hotels Group (IHG) for potential investors. The results are calculated by using ratio model from the Financial Statement, Balance Sheet and Cash Flow of IHG in 2006 and 2007. The significance of the accounting figures can only be established through comparisons with competitors. In this report, Millennium & Copthorine Hotels Plc has been chosen as the competitor for IHG to provide investors information about its performance and financial position. It has been chosen because they are in the same industry and amongst the same size.2. Company BackgroundIHG is a global hotel company and is known as a hotel with the largest number of rooms. The Group has more than 3900 owned, leased, managed and franchised hotels and approximately 585,000 rooms in more than 100 countries around the world. IHG focus on branding, managing and franchising strength and this group will continue to drive return on capital employed and shareholder returns. The strategy is continue to reduce capital by selling the real estate assets of the majority of its hotel portfolio while retaining management or franchise agreement and they return excess funds to shareholders or reinvest in growth opportunities, while maintaining appropriate efficient debt levels.3. Profitability & Return On Capital Profitability & P3.1 Gross Profit Margin & Net Profit Margin20072006Gross Profit Margin53.45%54.83%Net Profir Margin 30.24%28.88%IHG had opened 366 hotels in the year 2007 which resulted in a higher turnover, cost of sales and expenses. In fact, the foremost reason for IHG's turnover to grow was through IHG's global reservation channels which had increased by 19.3 % in 2007. Besides, IHG leading Priority Club Rewards (PCR) loyalty program was awarded the Best Hotel Reward Program in the world with 37 million members. It increased to 16.3 % which contributed $5.2 billion of global system room revenue. IHG offers special bonus points promotion and "Any hotels, Anywhere Reward" which "gives members incredible choices to redeem their points at our more than 3,500 properties in nearly 100 countries…" Said Steve Sickel, Senior Vice President, Priority Club Rewards (Hospitalitynet,...

Find Another Essay On The Financial Analysis of IHG

Analysis of Financial Statements

2370 words - 9 pages Analysis of Financial PAGE \* MERGEFORMAT 1 Running head: ANALYSIS OF FINANCIAL STATEMENTSAnalysis of Financial StatementsYolanda Cannon, Tiffany Nicole Jackson & Karmisha WomackUniversity of PhoenixFinancial Analysis for Managers IFIN/324Robert Fencl10 May 2007Analysis of Financial StatementsFinancial statements or reports are records of a company's financial transactions. They determine the profitability of a company's finances in the

Financial Analysis of Halliburton

1503 words - 6 pages weaknesses. By using this type of comparison, the ratio analysis can provide dimension to the overall financial situation of the company (David 108). Several financial ratios can be considered when looking at a company’s economic performance. However, given all the possibilities it is important to focus on a few key areas that are functionally related. Therefore, for the purpose of analyzing Halliburton’s financial position as well as its

Financial Analysis of Greencore

3309 words - 13 pages over 6 million Christmas cakes a yearGreencore bakes 80 million Pizza bases per year and tops 50 million Pizzas per year, which staked on top of each other would rise to the equivalent height of 170 Mount Everest's.SWOT Analysis on Greencore Group PlcStrengths Weaknesses1. Merger of two divisions into one convenience foods division 1. Slow growth rates in convenience food markets2. Diverse product range and strong market positioning 2. Decreasing

Financial Analysis Of McDonalds

2148 words - 9 pages Most anyone driving with a young child in their car is familiar with McDonalds. Once that child sees those trademark golden arches out the car window, you will likely be stopping in for a happy meal with a toy inside. But does this mean that the company is a good investment for your hard earned money? That is what we will explore in this paper. We will look into the stock and financial statements of McDonalds and their closest competitors to do

Financial Analysis for the Town of Chapel Hill

2640 words - 11 pages in students that the university attracts. The town has seen strong population growth over the past 20 years, growing over 40% with 25% between 1990 and 2000, and 12.4% between 2000 and 2010 (Chapel Hill Community Overview, 2014). The following report is an analysis of the financial condition of the Town of Chapel Hill, and focuses primarily on the General Fund. The analysis draws upon the information given by the 2010-2011, 2011-2012, & 2012

Self-assessment of Financial Management Students to the Financial Analysis Skills

1112 words - 5 pages product of the company. Knowing financial analysis skills are important to those whotook up, taking up and will take up BS Financial Management. It is a requirement to be familiarize on those skills. Majority of the companies are looking for some financial analyst to check for the financial stability of the company. Analysing, spread sheets, checking up or making the recommendation to the manager or president is some of the works of being a financial

Analysis of Financial Statements Simulation

979 words - 4 pages Analysis of Financial PAGE \* MERGEFORMAT 1 Running head: ANALYSIS OF FINANCIAL STATEMENTS SIMULATIONAnalysis of Financial Statements SimulationUniversity of PhoenixAnalysis of Financial Statements SimulationThis paper will answer two questions concerning the Analysis of Financial Statements Simulation. The first answers how the manager of Panorama should decide the relative importance of the five categories of financial ratios when assessing

Analysis of Insurance Financial Statements

1806 words - 7 pages unexpected losses, a firm can free up premium funds for use in other financial operations and increased profitability. In my report, Discover Company had the highest amount of incurred losses (not including LAE), but their Pure Loss Ratio was second highest to Drivers Company. This is because Drivers does a much smaller amount of business compared to Discover Company in earned premiums. Daily Underwriters of America had the lowest Pure Loss Ratio as

Financial Ratio Analysis of Microsoft

889 words - 4 pages long-term investments as to their shareholders' pocket. Microsoft has good financial standing and controls a lot of the computer industry.2.Efficiency RatiosAsset turnover ratio and net income per employee are good measures for a company's efficiency. The former ratio shows management's ability to use assets to produce sales, while the latter indicates the employee's productivity. If either of these two ratios is low, inefficiency may be an

Financial Analysis of Cyberguard Corporation

5559 words - 22 pages ) e) Acquisition of WebWasher AG, net cash acquired: $(8,166) Major Financing Activities in 2004: (In Thousands) a) Proceeds from Stock Option Exercised: $4,819 b) Proceeds from Warrant Conversion: $857 c) Proceeds from Issuance of Common Stock in Stock Purchase Plan: $167 3. a) Financial Leverage Ratio: This ratio measure the relationship between total assets and stockholder's capital that

Financial Analysis Of General Electric

1861 words - 7 pages committed lending arrangements as well as numerous other sources of liquidity. General Electric, a triple-A rated, frequent borrower, is in a stable position with regards to liquidity. Its issuance policy is not based on market outlook but rather on a planned program of issuance to support its ongoing financial businesses and its addition of assets. The next thing to analyze is the way GE is managing its assets. If you look at the numbers GE

Similar Essays

Financial Analysis Of The Coca Cola Company

2302 words - 9 pages also increasing indicating about the cash flow generating capacity of the company and this ratio is far ahead than the industrial standard, next is the market to book ratio which follows the same like price/cash flow ratio. Thus, overall financial performance and health of the company is improving and good. Stock price and EPS analysis: Source: Yahoo finance From the above graph it is clear that the stock of KO is relatively priced

Analysis Of Financial Statement

579 words - 2 pages determine return on investment and the return on equity. Price/Earnings ratio is another way to measure a company’s profitability by dividing the market price of a common share of stock by the earnings per share. The P/E ratio tells us the value of a company’s common stock. Dividend pawet ratio and the dividend yield are some other ways to judge a company’s profitability. Debt, or financial leverage is the last category of ratio analysis used to find the

Financial Analysis Of Project

1336 words - 5 pages MemorandumDate:February 6, 2009To:CEO, Superior Living Inc.CC:CFO, Superior Living Inc.From:XYZSub.:Project EvaluationIntroductionThe Memo is related to the evaluation of the project on the basis of the profitability. The financial pros and cons are included in the analysis, which can occur due to its going public and introducing a new production plant. The company has various options like use of debt source or other source, management's

Financial Analysis Of Amazon

641 words - 3 pages retail business can be successful. Recently there have been observations of whether Amazon is steadily keeping up with the fast pace of the online retail industry, or if they have hit their peak of innovation and will slowly dwindle away. A financial analysis of Amazon can prove that they are steadily keeping up in the fast paced online retail industry and that their long term goals are indicative to their new innovations. Amazon’s long term