Hilton Hotel Financial Performance: A Detailed Ratio Analysis

This report provides a comprehensive financial analysis of Hilton Hotel, focusing on key financial management aspects through ratio analysis. It delves into profitability ratios (gross profit, EBITA margin, operating profit margin, net profit margin, revenue margin, and cash flow margin), efficiency ratios (accounts receivable turnover, inventory turnover, fixed asset turnover, and accounts payable turnover), and liquidity ratios (current ratio, acid test ratio, and working capital ratio). The analysis aims to evaluate Hilton Hotel's financial health and performance. The report concludes with recommendations for Hilton Hotel to improve its cost management system and optimize its payment policies for creditors and debtors to enhance profitability for the upcoming year.

FINANCIAL MANAGEMENT
FOR THE HOTEL INDUSTRY

Table of Contents
Executive summary
Analysis
Breakdown of ratio analysis
Profitability ratio
Efficiency ratio
Liquidity ratio

Executive summary
This project report is based on the analysis of
financial management of Hilton hotel and
different ratio analysis family such as
profitability ratio; efficiency ratio and
liquidity ratio. Report starts with the detail of
hotel and about its operations; after that main
part is start with table of results of ratio
analysis based on its financial statement.

Analysis
In this part different ratio analysis has been
done. Three different types of ratio’s;
Profitability, Efficiency and Liquidity ratio’s
has been discussed.

Profitability Ratio
Profit ratios are measures related to the
money that auditors and financial experts use
to measure and evaluate a Hilton hotel's
ability to make a profit (profit) versus revenue
input, accounting report resources, labor
costs and investor value during a given
period.

Types of Profitability ratio
Gross profit
EBITA Margin
Operating profit margin
Net profit margin
Revenue Margin
Cash flow margin

Efficiency ratio
Efficiency ratios measure a company's ability
to use its benefits and responsibilities to
create a business. A highly productive society
has limited its net interest in resources, and
therefore needs less capital and bonds to stay
in business.

Types
Accounts receivable turnover
Inventory turnover
Fixed asset turnover
Accounts payable turnover

Liquidity Ratio
Liquidity ratios are the ratios that measure
an Hilton hotel's ability to fulfill its mandatory
interim commitments. These allowances
measure an Hilton hotel's ability to take care
of its transition responsibilities when they
expire.

Types
Current Ratio
Acid test ratio
Working capital ratio

Conclusion
On the basis of whole report it can be
concluded that; Hilton Hotel requires cost
management system to control its overall cost
of business to improve its gross profit and net
profit for the upcoming year 2020. It is also
recommended that; it should adopt a policy
under which creditors should paid later and
payment from debtors should received
earlier.

Thank You