(PDF) Analysis of Financial Statements

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MARYLAND CREATIVE SOLUTIONS
Project 3: Analyzing Financial Reports
Report to MCS Management
[Student’s Name Here]
[Date Here]
[Faculty Name Here]
MBA 620-[Section Number Here]

Compare Business Performance Using
Financial Statements
On perusal of the Financial Statement i.e. Profit and Loss Account, Balance
Sheet and Cash flow statement of both the companies, it may be inferred
that the net income of Marriot International has seen a very sharp increase
compared to Choice whose net profit has seen a decrease of 18% compared
to past year. However, if one consider the net profit margin, Choice Hotel is
better compared to Marriot which is operating a margin of 5% (approx.) on
sales compared to 10% of Choice Hotels.
From Balance sheet analysis, it can be inferred the total assets of both the
company have undergone a change, the highest is for Choice hotels which is
9% (Positive). On liabilities front, the company whose liability has increased
higher is Marriot Limited compared to Choice Limited. Further, the equity of
both the firm has undergone a change, while the maximum wealth has been
added for Choice Limited as it has gained 32% of equity compared to Marriot
which lost 30%.
Cash Flow Analysis
On operating front Choice Hotels have performed better compared to Marriot
International as they have witnessed a growth of 69% compared to 45% of
Marriot.