Financial Management For Hotel Industry

This presentation provides an overview of financial management in the hotel industry, including analysis of financial ratios and performance. It discusses the importance of finance in a company and highlights the financial performance of Rangemaster Plc, a manufacturing company in the UK. The presentation also covers various financial ratios related to profitability, efficiency, liquidity, capital structure, and investment. References are provided for further reading.

Financial Management For Hotel
Industry

Table Of Content
 Executive Summary
 Summary of results
 Analysis of each family ratio
 Conclusion
 References

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. 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.

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.
 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.

Analysis of Each Family Ratio
Profitability: Profitability ratios are a category of accounting measures
which are calculated across period to measure the capacity of a
company to produce profits compared to its sales, operational
expenses, balance sheet resources and shareholders' equity, using
information from a particular duration period.
 Return on capital employed
 Assets turnover
 Gross Profit
 Net operating profit

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Efficiency: Generally, the efficiency ratio is used to assess how efficiently an
organization effectively manages its resources and responsibilities.
 Non current assets turnover
 Inventory Turnover
Liquidity: the liquidity ratio is a calculation used to calculate the capacity of a
firm to pay its quick-term liabilities.
 Current ratio
 Acid test
 Creditors days
 Debtors days

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Capital structure: This ratio is the fundamental measure of capital
structure, which is measured mostly during balance sheet portion
of the horizontal examination of the obligations.
Debt to equity
Debt to capital
Interest cover
Investment: The investment benefit ratio is the ratio of the total
equity profits of an insurance firm to the paid bonuses.
Earning per share
Price earnings ratio
Dividend per share
Dividend percentage ratio

Conclusion
As per the above report it has been concluded that in a business conduct
various types of financial activities that manage by the business in
systematic manner. A healthy debt-to - equity ratio is between around
1 and 1.5. The optimal debt-to - equity ratio, nevertheless, can differ
vary by industry, as some businesses use much more debt funding
than others. Capital-intensive industries such as the economic and
industrial sectors often have higher percentages, which may exceed 2.
The company tries to generate more profitability to pay dividend to
shareholders and for this set effective brand image of the company.

References
Alsemgeest, L., 2015. Arguments for and against financial literacy
education: where to go from here?. International Journal of
Consumer Studies. 39(2). pp.155-161.
Das, C. P. and Swain, R. K., 2018. Influence of capital structure
on financial performance. Parikalpana: KIIT Journal of
Management. 14(1). pp.161-171.
Dwiastanti, A., 2015. Financial Literacy as the Foundation for
Individual Financial Behavior. Journal of Education and
Practice. 6(33). pp.99-105.
Dzhandzhugazova, E. A. and et.al, 2015. Chaplyuk, VZ
Methodological aspects of strategic management of financial risks
during construction of hotel business objects. Asian Social
Science. 11(20). pp.229-234.