financial analaysis

PAKISTAN Hotels Developer

Limited

Financial Analysis

Group Members

Aftab

SairaShahana

Abid

The presentation is based on the financial data analysis of a Pakistani listed company engaged in the business of hotel industry, Pakistan Hotel Developer Limited (PHDL)

Three years data has been analyzed in order to reach at a comprehensive conclusion to avoid any usual fluctuation confront the company

Introduction

Objective & Significance

Objective:◦ We will discuss Balance Sheet, Profit &

Loss A/C, Cash Flow Statement and each and every important aspect of the company.

◦ So, that we be in a better position to comments on Hotel industry of our country

Objectives & Significance

Significance:◦ Hotel industry is the back bone of tourism,

and it is an industry of huge dimensions in its own place.

◦ It consumes large amounts of inputs and services, thus creating strong Significance:

◦ economic stimuli for economy of the country.

Data Collection Sources

PRIMARY SOURCES: Annual Reports Interviews

SECONDARY SOURCES: Study Text Articles Internet

DATA COLLECTION TOOLS: Book, Websites, are main tools which have been described above under the heading of data collection sources

Financial Analysis Process

The emulation process will primarily involve the use of ratio

analysis which further be broken in to: GRAPHICAL ANALYSIS:

◦ Use of graph to show comparison of past with current

data, with competitors, using financial statement

absolute figures. VERTICAL ANALYSIS:

◦ Each expense is analyze on the basis of turnover in respect

of income statement whereas balance sheet items are

analyzed over total of assets and equities in respect of

individual asset or equity

HORIZONTAL ANALYSIS:◦To analyze trend of components of financial statement using 2006 as base year

FUTURE PLANNING◦It will broadly include the company’s future plans in terms of increasing financial performance and achieving

Financial Analysis Process

Data Analysis

Financial analysis view the financial or commercial worth of the entity from the perspective of all stakeholders.

Trends and Performance can be represented pictorially in the form of absolute figures

SAIRA

Equities side of Balance Sheet

Assets side of Balance Sheet

Profit & Loss A/c

Cash Flow Statement

Ratio Analysis

NOTE: Rupees in “000”

Ratio Analysis

NOTE: Rupees in “000”

Ratio Analysis

NOTE: Rupees in “000”

Ratio Analysis

NOTE: Rupees in “000”

SHAHANA

Ratio Analysis

NOTE: Rupees in “000”

Ratio Analysis

NOTE: Rupees in “000”

Ratio Analysis

NOTE: Rupees in “000”

Ratio Analysis

NOTE: Rupees in “000”

Ratio Analysis

NOTE: Rupees in “000”

Common Size Analysis (Horizontal)

Equities side of Balance Sheet

Common Size Analysis (Horizontal)

Assets side of Balance Sheet

Common Size Analysis (Horizontal)

Profit & Loss A/c

ABID

Trend Analysis (Vertical)

Equites side of Balance Sheet

Trend Analysis (Vertical)

Assets side of Balance Sheet

Graphical Analysis

Sales & Services

Graphical Analysis

Cost of Sales & Services

Graphical Analysis

Gross Profit

Graphical Analysis

Net Profit Margin

Conclusion / Findings

Graphical analysis of sales revenue, cost of sales and Gross profit reflect sound financial position

Current Gross profit is about 54% of sales while this ratio of Profit & Loss A/c is only about 34%

The Liquidity situation improve over its prior years

Conclusion / Findings

Current resources adequately to generate

profit as compared to Profit & Loss A/CPHDL has sound financial position

indicating that it has good credit rating, it would have no problem if it plans to obtain further loan for expansion but even for the lender would first need to assess the norms of industry

Conclusion / Findings

By interview few personnel in

management, we came to know that PHDL

making further plans for expansion by

setting up a new hotel project in Lahore

city.

However this plan has been deferred for some period

Recommendation

Pakistan is a beautiful country with holiday resorts and hotels like regent plaza.

They should provide better and improved facilities for marketing the world has come to know of this fact

Thank you