Financial Strength of Macdonald Hotels Limited: A Ratio Analysis

Running head: REPORT 0
accounting for managers
MARCH 22, 2019
STUDENT DETAILS:

REPORT 1
Executive summary
With the help of three key areas such as liquidity, solvency and profitability, the financial
strength can be assessed in proper manner. There are various areas to be concerned
significantly for improving the financial health of company. In this report, financial
strength of the Macdonald Hotels Limited is evaluated. This report also states the
recommendations for the changes.

REPORT 2
Contents
Executive summary...............................................................................................................................1
Introduction...........................................................................................................................................3
Background of Organization.................................................................................................................3
Financial strength of Macdonald Hotels Limited..................................................................................4
Profitability Ratios.............................................................................................................................4
Liquidity ratios...................................................................................................................................5
Solvency ratios..................................................................................................................................6
Areas of concern....................................................................................................................................7
Recommendation for changes or further investigation.......................................................................7
References...........................................................................................................................................10
Appendix: Ratio analysis.....................................................................................................................12
Financial statements...........................................................................................................................13

REPORT 3
Introduction
To understand the value of a company, it is essential for the investors to consider the
financial health of entity. Providentially, this is not as complex as this sound to conduct
the financial analysis of the corporation by evaluating the financial statements of the
current year and previous year. In the following report, the financial position of
Macdonald Hotels Ltd is analysed. The financial strength of company is discussed and
critically examined with the help of ratio analysis. This report also states the areas for
concern and recommendations for changes or further investigation (Erasmus, et. al,
2016).
Background of Organization
Macdonald Hotels Ltd is the hospitality entity, situated in Bathgate, West Lothian,
Scotland. The major subsidiary of Macdonald Hotels Ltd is Macdonald Hotels and Resorts.
Macdonald Hotels and Resorts run various holiday resorts and hotels in Spain and United
Kingdom. The facilities of this involve restaurants, spa facility, fitness amenities,
functions, resorts, destination wedding, and venue of wedding. It also provides the space
to conduct the business events, meetings, assemblies, and seminars. Macdonald Hotels