Analyzing Financial Performance of The Star Gold Coast: A Comparative Study

Running head: TOURISM AND HOTEL MANAGEMENT
Tourism and Hotel Management
Name of the Student
Name of the University
Authors Note

1TOURISM AND HOTEL MANAGEMENT
Executive Summary
The study has included different types of the comparison which are recognised to be done as
per preparing a comparative and analytical case study for investment and potential in the
common stock in the last three years of The Star Gold Coast. The time period considered for
all the evaluation is considered with 2015-2017. Analytical and comparative study of Current
Assets have shown the total current asset of the company is depicted with a decreasing trend.
Analytical and comparative study of Non-Current Assets has further recognised it to be
increasing over the last three years. In terms of the gross profit and cost of sales the company
is seen to be performing relatively well in compared to the contemporaries. These inference
shows that The Star Gold Coast has much more potential for the investors to perform well in
the market in compared to other hospitality services available in Australia. The operating data
had revealed that increase in occupancy rate from 90% in 2015 and 2016 to 94% in 2017.

2TOURISM AND HOTEL MANAGEMENT
Table of Contents
Introduction................................................................................................................................3
Analytical and comparative study of The Star Gold Coast........................................................3
Analytical and comparative study of Current Assets.............................................................3
Analytical and comparative study of Non-Current Assets.....................................................4
Analytical and comparative study of Total Assets.................................................................4
Analytical and comparative study of Total Current Liabilities..............................................4
Analytical and comparative study of Owner’s Equity...........................................................5
Analytical and comparative study of Profit & Loss Statement..............................................5
Operating Data...........................................................................................................................5
Conclusion................................................................................................................................13
References................................................................................................................................14

3TOURISM AND HOTEL MANAGEMENT
Introduction
The Star Gold Coast previous known as Jupiters Hotel and Casino is situated in the
suburb of Bradbeach in the Gold Coast. The casino was seen to be identified as the first
casino of Queensland situated in Narang River and operations was seen to be handled by Star
Entertainment Group. There are seven complexes included in the hotel ranging from gym,
seven restaurants, eight bars, theatre and ballroom. The Star Gold Coast is depicted to offer
wide range of services which are associated to the availability of Lush landscaped gardens,
five-star comfort, suitable location and newly renovated facility (The Star Gold Coast, 2015).
The main aspects of the report have stated on the different types of the comparison
which are recognised to be done as per preparing a comparative and analytical case study for
investment and potential in the common stock in the last three years. In order to do this the
study has compared the financial performance for the last three years of The Star Gold Coast.
The financial evaluation of the company is identified in terms of conducting horizontal
analysis and financial ratios. These are observed in terms of the computation of the ratios
which are seen with the calculation of Current ratio, Quick ratio, Accounts receivable
turnover, Number of days’ sales in receivables, Inventory turnover, Number of days’ sales in
inventory, Debt to Assets ratio, Debt to Equity ratio, Number of times interest charges are
earned, ROA, ROE and Profit Margin ratio. The time period considered for all the evaluation
is considered with 2015-2017.
Analytical and comparative study of The Star Gold Coast
Analytical and comparative study of Current Assets
The current assets of The Star Gold Coast are identified with Cash and cash
equivalents, Restricted cash, Accounts receivable, Inventories, Other Assets and Derivative
Financial Instruments. The total current asset of the company is depicted with a decreasing