Financial Analysis of Oatlands and Wollongong Golf Clubs

Running head: HOTEL FINANCE AND REVENUE
Hotel Finance and Revenue
Name of Student:
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Author’s Note:

1HOTEL FINANCE AND REVENUE
Table of Contents
Introduction......................................................................................................................................2
Oatlands Golf Club..........................................................................................................................3
Ratio Analysis..............................................................................................................................3
Wollongong Golf Club Limited.......................................................................................................5
Ratio Analysis..............................................................................................................................6
Conclusion.......................................................................................................................................8

2HOTEL FINANCE AND REVENUE
Introduction
The report aims to do a financial analysis for Oatland Golf Club and Wollongong Golf
Club. The important financial considerations for the discussion is able to include “Current ratio,
Quick ratio, Accounts receivable turnover, Number of days’ sales in receivables, Debt to Equity
ratio, Number of times interest charges are earned and Return on Assets”. Some of the other
financial consideration is seen to include Return on Equity and Earnings per Share on common
stock.
Oatland Golf Club situated in suburb of Sydney, in the state of New South Wales,
Australia is affluent with the organizing a rewarding game. The Golf course also takes several
initiatives to support the basic elements of golf including, the correct grip and getting along with
the on-course play. The main program of the compansy is seen to commence from “Sunday 4th
February 2018 till Sunday 25th March 2018”. The golf course is also able to include 8-week
programme (8 x 45-minute sessions) which considers various aspects of the game (Oatlands Golf
Club, 2018).
Wollongong Golf Club is situated between magnificent Illawarra Escarpment and
beautiful Pacific Ocean. The golf club was established in 1897, a decade before electricity was
introduced and club shares the honour for being one of the oldest in the country. The club offers
wide range of selection of bars and function spaces. It offers AAA rated accommodation along
with award winning service. The true link of the company enjoys a round to indulge in the
unique experience which is offered in Wollongong. The interpretation of the ratio analysis is
done mainly on three aspects, namely liquidity, solvency and profitability ratio. Under the
liquidity ratio, ratios such as current ratio, quick ratio, asset receivable turnover ratio and number
of days sales in receivables has been calculated. Under solvency ratio total liabilities to total
assets, interest coverage and debt equity ratio is calculated. The profitability ratio has included
the analysis of net margin percentage, redone on assets and return on equity
(Wollongonggolfclub.com.au, 2018).

3HOTEL FINANCE AND REVENUE
Oatlands Golf Club
2014 2015 2016
RATIO ANALYSIS
Liquidity
Current Ratio % 49% 63% 51%
Quick Ratio $0.4 0.57930035
1
0.422362672
Accounts Receivable Turnover (times) 0.92 -0.82
Number of days’ sales in receivables 6.74 6.53 6.47
Solvency
Debt to Equity Ratio % 33% 36% 33%
Interest Cover (times) 0.25 0.15 -0.15
Total Liabilities/Total Assets 25.0% 26.3% 24.7%
Profitability
Net Margin % 1.33% 1.78% -1.95%
ROA % 0.6% 0.9% -1.0%
ROE % 1% 1% -1%
Ratio Analysis
• Current ratio – The report has shown the computation of current ratio by dividing the current
assets with current liabilities. The current ratio percentage of the company is discerned to be 49%
in 2014, 63% in 2015 and 51% in 2016. This shows a reducing trend in the recent year for
computation of current ratio. The decreasing nature of the current ratio shows that the company
has considerable ability to pay short-term and long-term obligations (Andrijasevic & Pasic,
2014).
• Quick ratio- The calculation of legal issues done by subtracting inventories from current
assets and dividing it with current liabilities. The quick ratio is further depicted with a stagnant