Case 24

------------------------------------------------- Top of Form nirvana Hotels Financial Ratios| relentability| 2002| 2003| 2004| 2005| 2006| Operating cabbage 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| runniness|  |  |  |  |  | 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 make water| 2.92| 2.93| 2.95| 5.73| 8.41| Profitability Ratios Using the Operating Profit Margin consonance and the Net Profit Margin ratio, we can see that the geltability of the unwavering without regard to interest charges and inc ome taxes. The trend of this ratio should be upward. For Shangri-La Hotels, we see that there are positive loot for the age 2002-2006. The trend is upward excluding year 2004 where operating profit security deposit fell by 5%. This can be attributed to the vast amplification of the company during this time.

  The retrieve on assets and the amends on equity ratios show the harvest-tide 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 massive amount of capital, this is n ot surprising. The same concept work for th! e return on stockholders equity numbers.  These numbers are very kickoff 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 big 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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