Financial Management for the Hotel Industry

Financial Management in
Hotel Industry

Contents
EXECUTIVE SUMMARY.........................................................................................................................4
MAIN BODY..............................................................................................................................................4
Summary of results..................................................................................................................................4
Analysis of each of the families of ratios.................................................................................................5
CONCLUSION...........................................................................................................................................9
REFERENCES..........................................................................................................................................11
APPENDICES...........................................................................................................................................12

EXECUTIVE SUMMARY
Finance represents the lifeline of any company. Finance, indeed, is still limited and so are
most other tools. Financial management is first component of the economic reporting
presentation. It is critical for any company that the finances it acquires are expended in such a
way that perhaps the profits from the expenditure are greater than financing costs. Financial
management is the method of business administration dedicated to a selective need for wealth
and an appropriate examination of the revenue source to encourage an expenditure department to
follow the path of achieving the objectives (Alsemgeest, 2015). This report based on
Rangemaster Plc which is a manufacturing company that produce and supply of catering
machine to hotel, restaurants and public services in United Kingdom. In this report analysis the
financial performance of company and identify the changes that are coming in 2019 as compare
of 2018. Along with focus on the financial ratio that accurately define the problem of the
business.
MAIN BODY
Summary of results
Summarized income statement: The main purpose is preparing of this statement to know net
profit in particular accounting period. The company prepares this statement for the year 2018 and
2019 and analysis the differences in both years. In the year, 2018 sales revenue was 250,000 and
in 2019 increase by 50000 reach on 300,000. The gross profit was 75000 in 2018 but increase in
2019 and calculated 96000 that show the performance 28.0. The operating profit was decreased
in 2019 as compare of 2018 due increase operating cost and notifies performance -21.8. After
deduction all the expenses, cost and taxation from the operating profit at the end of year get net
profit of the year which was 24000 in 2018 and 12000 in 2019. It denotes huge differences -
12000, and performance was -50.
Summarized statement of financial position: The main aim is preparing of this statement to
present actual financial position of company in particular year along with presents total assets
and total liabilities. The non-current assets were 528500 in 2018 that were increasing in 2019 by
84227 and reach on 612727 so identify the performance 15.9. Total assets of the company in