FACULTY OF TECHNOLOGY MANAGEMENT AND BUSINESS

SEMESTER 1 (SESSION 2021/2022)

BPE 23402
REAL ESTATE FINANCE
(SECTION 2)

LECTURER:
DR. KHADIJAH BINTI MD ARIFFIN

GROUP ASSIGNMENT

ORGANISED BY:
NAME MATRIC NUMBER

MUHAMMAD HARIS FARHAN BIN HARIZAN AP200026

NUR ATHIRAH BINTI MASHUD AP200033

NUR SABRINA BINTI SAMSUDIN AP200243

NURUL AQILAH BINTI ABD MANAP AP200074

NURUL SYAFIQA BINTI MOHD AZMI AP200044

FATINI IZZATI BINTI MOHD HASBU AP200061

1.0 INTRODUCTION

This assignment is conducted by us as a group to accomplish the group assignment of

BPE23402 Real Estate Finance. In this assignment, we are using 3 different hotel
company which is Genting Malaysia, Accor Hotel and also Mandarin Oriental Hotel.
The purpose of this assignment is to compare 3 company that stated before in their
annual financial record and decide which company is the best in financial part. There
are some indicators that we use to calculate and evaluate to hand up this particular
assignment.

One of the considered matters is liquidity ratio. Liquidity ratios calculate indicators
including the current ratio, quick ratio, and operating cash flow ratio to determine a
company's capacity to meet debt obligations and its margin of safety. The short-term
financial commitments of a corporation that are due within a year or during the
operating normal cycle are examined as current liabilities. Liquidity ratios are used by
bankruptcy analysts and mortgage originators to examine going concern difficulties, as
they show cash flow positioning.

Under the liquidity ratio, the indicators being used to accomplish the report is as stated
below;

Current ratio - Liquidity ratio that assesses a company's capacity to meet both short-
and long-term obligations within a year. It demonstrates how a corporation can use
current assets to satisfy current debt and other payables on its financial statement. The
current ratio compares a company's current total assets (both liquid and illiquid) to its
current total liabilities to determine this ability. We may simply divide the company's
current assets by its current liabilities to find the ratio's value. If the current ratio is
greater than one, the corporation has more assets than liabilities to pay.

Quick ratio - Measure of a company's capacity to satisfy short-term obligations with its
most liquid assets and is an indicative of its short-term liquidity. The quick ratio
compares the quantity of liquid assets a company has to the amount of current liabilities
it has. Liquid assets may be swiftly turned into cash, whereas current liabilities are debt
that must be paid within a year. As a metric for assessing a firm's liquidity condition,
this ratio is thought to be significantly better and more dependable. It can be determined
by subtracting inventory from current assets and dividing by current liabilities.

Inventory turnover - Standard metric for determining how active or liquid a company's
inventory is. It's computed by dividing the cost of products sold by the average
inventory. The activity ratio indicates how many days of inventory a company keeps
on hand. By dividing inventory turnover by 365, the average age of goods may be
simply calculated.

Average collection period - In examining credit and collection strategies, the average
collection duration, often known as the average age of accounts receivable, is useful.
The average daily sales are divided by the accounts receivable balance to arrive at this
figure.

Average payment period - The average payment period is the time it takes to pay
accounts payable on average. To get the average purchases per day, divide the cost of
items sold by 365 days, then divide the average purchases per day by the accounts
payable, and you'll get the number of days right away.

Total asset turnover - Total asset turnover shows the efficiency with which the company
uses its assets to produce sales.

Debt ratio – The debt ratio measures the proportion of total assets financed by the firm’s
creditors. Based on the information above, It is a measure of a company's financial risk,
or the possibility that its total assets will not be sufficient to pay off its debts and interest.
Because failure to pay debts and interest payments can lead to a company's closure,
debt ratio is an important measure of a company's long-term financial viability.

Debt to equity ratio – The debt-to-equity ratio measures the relative proportion of total
liabilities and common stock equity used to finance the firm’s total assets. Lower debt-
to-equity ratios are better and indicate less risk. The larger debt-to-equity ratio is
unfavourable since it indicates that the company is more reliant on external lenders and
hence more vulnerable, particularly at higher interest rates. A debt-to-equity ratio of
1.00 suggests that debt funds half of a company's assets and shareholder equity funds
the other half. A score greater than 1.00 indicates that more assets are financed by debt
than by shareholder money, and vice versa.

Gross profit margin – Gross profit margin ratio measures the percentage of each sales
that remain after the company has paid for its good.
Operating profit margin – Operating Profit Margin is a profitability or efficiency ratio
that represents the amount of profit a company produces from its operations before
taxes and interest charges are deducted.

Return on asset (ROA) – The entire efficacy of management in creating profits is

measured by this ratio. This ratio is used to determine how successfully a corporation
uses its assets to create earnings before contractual obligations must be met.

Return on equity (ROE) - The return on equity (ROE) ratio is used to calculate the profit
earned by common stockholders on their investment in the company. Net income is
expressed as a proportion of shareholder equity.
2.0 GENTING HOTEL FINANCIAL RATIO

INTRODUCTION

The Companies Act 1965 was used to form Resorts World Sdn Bhd, a private company
limited by shares, on 7 May 1980. Its name was changed to Resorts World Bhd (1989–
2009) and then Genting Malaysia Berhad ("Genting Malaysia"), Registration No.
198001004236, once it was converted into a public corporation in 1989. Genting
Berhad and Genting Malaysia conducted a reorganisation exercise in 1989, with
Genting Malaysia obtaining all of Genting Berhad's gaming, hotel, and resort-related
activities, as well as goodwill and other relevant assets, from Genting Berhad. Since its
initial public offering on December 22, 1989, Genting Malaysia shares have been traded
on the Bursa Malaysia Main Market.

Resorts World Genting ("RWG") is Malaysia's flagship integrated resort destination,

with over 10,500 rooms spread across seven different hotels. Gaming, theme park and
amusement attractions, restaurants and retail shops, as well as international shows and
business conference facilities, are all part of the resort's leisure and entertainment
offerings. The mid-hill Genting Highlands Premium Outlets (a joint venture between
Genting Plantations Berhad and Simon Property Group) adds to the variety of RWG
attractions. Upon completed, the new outdoor theme park will complement RWG's
comprehensive entertainment options. Resorts World Kijal in Terengganu and Resorts
World Langkawi on Langkawi Island are two of Genting Malaysia's gorgeous
beachfront complexes. For more than 50 years, Genting Malaysia has been primarily
engaged in the leisure and hospitality industry, including theme parks, gaming, hotels,
coastal resorts, and entertainment.
FINANCIAL RATIO CALCULATION

Ratio 2017 2018 2019

Current ratio = 4577.4 6523.2 6390.7
1912.1 2152.8 3512.1
𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐴𝑠𝑠𝑒𝑡𝑠
𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐿𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠 2.39 : 1 3.03 : 1 1.82 : 1

The current ratio of Genting Hotel increases from

2017 to 2018 which is 2.39 to 3.03 and decrease from
2018 to 2019 which is 1.87. It means in 2017 to 2018
they are capable of paying their short-term obligations.
The higher the ratio, the more capable the company.
But 2018 to 2019, the capability slightly decreases
because of the lower the ratio, the lower the capability
of the company to pay their obligation.
Acid test ratio = 4577.4 − 54.7 6523.2 − 52.7 6390.7 − 65.4
1912.1 2152.8 3512.1
𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐴𝑠𝑠𝑒𝑡 − 𝐼𝑛𝑣𝑒𝑛𝑡𝑜𝑟𝑦
𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐿𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠 2.37 : 1 3.01 : 1 1.80 : 1
The acid test ratio of Genting Hotel increases from
2017 to 2018 increases which is 2.37 to 3.01 but
decreases from 2018 to 2019 which is 1.80. Since all
the acid test ratio shows that it greater than 1, means
that the company have enough quick assets to pay for
it current liabilities
Inventory turnover = 4076.3 4491.0 5113.5
54.7 52.7 65.4
𝐶𝑜𝑠𝑡 𝑜𝑓 𝐺𝑜𝑜𝑑𝑠 𝑆𝑜𝑙𝑑
𝐴𝑣𝑒𝑟𝑎𝑔𝑒 𝐼𝑛𝑣𝑒𝑛𝑡𝑜𝑟𝑦 = 74.5 85.2 = 78.2

The inventory turnover of Genting Hotel in 2017 was

74.5 days. This means that the company get the cash
faster after their good sold until they get increase in
value with 85.2 days in 2018. The increasement is
about 12.56%. However, in 2019 the number of days
decrease into 78.2 days. This shows that the company
manage to get cash again in a shorter period compare
to 2018.
Average collection period = 388.0 442.1 378.7
5711.5/365 6477.9/365 7008.1/365
𝐴𝑐𝑐𝑜𝑢𝑛𝑡𝑠 𝑅𝑒𝑐𝑒𝑖𝑣𝑎𝑏𝑙𝑒
𝐴𝑛𝑛𝑢𝑎𝑙 𝑠𝑎𝑙𝑒𝑠/365 = 24.79 = 24.91 = 19.72
= 25 days = 25 days = 20 days
The average collection period remains constant from
2017 to 2018 which is 25 days but slightly decrease in
2019 which 20 days. It shows all the average
 collection period is less than 30 days, that is
favourable. So, all the average collection period are
acceptable but in 2019, it indicates the organization
collects payments faster because it was showing the
low average.
Total asset turnover = 5711.5 6477.9 7008.1
24683.2 27877.2 28,656.9

= 0.23 0.23 = 0.25

The total assets turnover remains constant from 2017
to 2018 which is 0.23 but increase in 2019 where the
value is 0.25. The company assets turnover ratio in
2019 is 0.25 which is the highest value. So, it means
the more efficient it is at generating revenue from
assets while a lower asset turnover ratio is 0.23 in 2017
and 2018 indicates that a company is not especially
effective at using its assets to generate revenue.
Debt ratio = 7333.4 10300.1 10,970.1
24683.2 27877.2 28,656.9
𝑇𝑜𝑡𝑎𝑙 𝐿𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠
𝑇𝑜𝑡𝑎𝑙 𝐴𝑠𝑠𝑒𝑡𝑠 = 0.30 = 0.38
= 30% = 0.37 = 38%
= 37%
The debt ratio of Genting Hotel was increases in three
years which is 2017 (0.30), 2018 (0.37) and 2019
(0.38). the higher the ratio, the greater the amount of
people’s money being used to generate the profit.
Means the higher the ratio, the greater the firm’s
degree of indebtedness and the more financial
leverage it has.
Debt to equity ratio = 7333.4 10300.1 10,970.1
1764.5 1764.5 1764.5
𝑇𝑜𝑡𝑎𝑙 𝐿𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠
𝐶𝑜𝑚𝑚𝑜𝑛 𝑆𝑡𝑜𝑐𝑘 𝐸𝑞𝑢𝑖𝑡𝑦 = 4.16 = 6.22
= 416% = 5.84 = 622%
= 584%
The debt to equity of Genting Hotel was increases
from 2017 to 2019 where 4.16%, 5.84%, and 6.22%.
the greater than 1 ratio value indicates that the portion
of assets provided by stockholders is lower than the
portion of assets provided by the creditors. As with
that ratio, the higher the ratio, the greater the firm’s
use of financial leverage
Times interest earn ratio = 1210.1 1542.2 1281.5
90.4 136.4 112.1
𝐸𝑎𝑟𝑛𝑖𝑛𝑔 𝑏𝑒𝑓𝑜𝑟𝑒
𝑖𝑛𝑡𝑒𝑟𝑒𝑠𝑡 𝑎𝑛𝑑 𝑡𝑎𝑥𝑒𝑠 = 11.43
𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡 = 13.39 11.31
The times interest earn ratio of Genting Hotel is
decrease from 2017 (13.39) to 2018 (11.31) and
slightly increases in 2019 (11.43). the best value is in
2019 which is the higher value because the higher the
value, the better able the firm is to fulfil its interest
obligation.
Gross profit margin = 1636.2 1986.9 1894.6
5711.5 6477.9 7008.1
𝑆𝑎𝑙𝑒𝑠 − 𝑔𝑟𝑜𝑠𝑠 𝑝𝑟𝑜𝑓𝑖𝑡
𝑆𝑎𝑙𝑒𝑠 = 0.29 = 0.27
= 29% = 0.31 =27%
= 31%
The gross profit margin ratio of Genting Hotel is
increases from 2017 (0.29) to 2018 (0.31) and slightly
decrease in 2019 (0.27). The best value is on 2018
since the higher the value of gross profit margin, it is
better because that is the lower the relative cost of
merchandise sold.
Operating profit margin = 1668.7 2143.7 1845.1
5711.5 6477.9 7008.1
𝑂𝑝𝑒𝑟𝑎𝑡𝑖𝑛𝑔 𝑃𝑟𝑜𝑓𝑖𝑡
𝑆𝑎𝑙𝑒𝑠 = 0.29 = 0.26
= 29% = 0.33 = 26%
= 33%
The operating profit margin ratio of Genting Hotel is
increases from 2017 (0.29) to 2018 (0.33) and slightly
decrease in 2019 (0.26). High operating profit margin
value is preferred, so the on 2018 which is the highest
is the best value to be indicate.
Net profit margin = 1428.3 1382.3 1115.7
5711.5 6477.9 7008.1
𝐸𝑎𝑟𝑛𝑖𝑛𝑔 𝐴𝑣𝑎𝑖𝑙𝑎𝑏𝑙𝑒 𝑓𝑟𝑜𝑚
𝐶𝑜𝑚𝑚𝑜𝑛 𝑆𝑡𝑜𝑐𝑘ℎ𝑜𝑙𝑑𝑒𝑟𝑠 = 0.25 = 0.16
𝑆𝑎𝑙𝑒𝑠 = 25% = 0.21 = 16%
= 21%
In the company of Genting Hotel, the value of net
profit margin decreases which is 0.25 to 0.21 and
also 0.16. The highest net profit margin of Genting
Hotel is in 2017 which is 0.25%.
 Earnings per share = 1635.2 1382.3 1115.7
1764.5 − 911.3 1764.5 − 999.1 1764.5 − 998.1
𝐸𝑎𝑟𝑛𝑖𝑛𝑔 𝐴𝑣𝑎𝑖𝑙𝑎𝑏𝑙𝑒 𝑓𝑟𝑜𝑚
𝐶𝑜𝑚𝑚𝑜𝑛 𝑆𝑡𝑜𝑐𝑘ℎ𝑜𝑙𝑑𝑒𝑟𝑠 = 1.92 = 1.81 = 4.46
𝑁𝑜. 𝑜𝑓 𝑆𝑜𝑢𝑟𝑐𝑒
The earning per share ratio value of Genting Hotel is
decrease from 2017 (1.92) to 2018 (1.81) and
bombastically increase in 2019 (4.46). The best value
is on 2019 because higher earnings per share indicates
that the company is more profitable and has more
profit to distribute to the shareholders. In theory,
higher earnings per share would suggest that a
company is more valuable.
Financial leverage multiple 24,683.2 27,877.2 28,656.9
= = =
(Total liabilities and stockholders’ equity / 17,349.8 17,577.1 17,686.8
common stock equity)
= 1.42 = 1.59 = 1.62

The lower your leverage ratio is, the easier it will be

for you to secure a loan. The higher your ratio, the
higher financial risk and you are less likely to receive
favourable terms or be overall denied from loans.
Generally, a ratio of 3.0 or higher is desirable,
although this varies from industry to industry. The
Financial leverage multiple are in increasing pattern
which 1.42 on 2017,1.59 on 2018, and 1.62 in 2019
Return on total asset (ROA) 1635.2 1382.3 1115.7
(𝐸𝑎𝑟𝑛𝑖𝑛𝑔𝑠 𝑎𝑣𝑎𝑖𝑙𝑎𝑏𝑙𝑒 𝑓𝑜𝑟 𝑐𝑜𝑚𝑚𝑜𝑛 24683.2 27877.2 28,656.9
𝑠𝑡𝑜𝑐𝑘ℎ𝑜𝑙𝑑𝑒𝑟𝑠)/ (𝑇𝑜𝑡𝑎𝑙 𝑎𝑠𝑠𝑒𝑡𝑠)
= 0.07 = 0.05 = 0.04
= 7% = 5% = 4%
Return on assets of Genting Hotel had the higher in
2017 (0.07) than 2018 (0.05). However, the value
decrease in 2019 (0.04). This shown the company is
not really efficient in generating profit since higher
return on asset shows the more efficient the company
is at generating their profit.
Return on equity (ROE) 0.07 0.07 0.04
= = =
(Return on total assets (ROE) / financial 1.42 1.59 1.62
leverage multiple)
= 0.049 = 0.044 = 0.025
= 4.9% = 4.4% = 2.5%
Return on assets of Genting Hotel had the higher in
2017 (0.07) than 2018 (0.05). However, the value
decrease in 2019 (0.04). This shown the company is
not really efficient in generating profit since higher
return on asset shows the more efficient the company
is at generating their profit.
 YEAR EVALUATION
RATIO FORMULA 2017 2018 2019 INDU CRO TIM OVERAL
STR SS E L
Y SECT SERI
AVE IONA ES
RAG L 2017-
E 2019 2019
2019
LIQUIDITY
Current ratio (𝐶𝑢𝑟𝑟𝑒𝑛𝑡 2.39 3.03 1.82 2.41 OK Good Good
𝑎𝑠𝑠𝑒𝑡𝑠)/(𝐶𝑢𝑟𝑟𝑒𝑛𝑡
𝑙𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠)
Acid test (𝐶𝑢𝑟𝑟𝑒𝑛𝑡 2.37 3.01 1.80 2.39 OK Good Good
ratio 𝑎𝑠𝑠𝑒𝑡𝑠−𝐼𝑛𝑣𝑒𝑛𝑡𝑜𝑟
𝑦)/(𝐶𝑢𝑟𝑟𝑒𝑛𝑡
𝑙𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠)
ACTIVITY
Inventory (𝐶𝑜𝑠𝑡 𝑜𝑓 𝑔𝑜𝑜𝑑𝑠 74.5 85.2 78.2 79.3 Good Good Good
turnover 𝑠𝑜𝑙𝑑)/𝐼𝑛𝑣𝑒𝑛𝑡𝑜𝑟𝑦
Average (𝐴𝑐𝑐𝑜𝑢𝑛𝑡𝑠 25 25 20 23.3 Mode Mode OK /
collection 𝑟𝑒𝑐𝑒𝑖𝑣𝑎𝑏𝑙𝑒)/(𝐴𝑣𝑒 days days days rate rate Moderate
period 𝑟𝑎𝑔𝑒 𝑠𝑎𝑙𝑒𝑠 𝑝𝑒𝑟
𝑑𝑎𝑦)
Total assets 𝑆𝑎𝑙𝑒𝑠/(𝑇𝑜𝑡𝑎𝑙 0.23 0.23 0.25 0.24 Good OK OK
turnover 𝑎𝑠𝑠𝑒𝑡𝑠)
DEBT
Debt ratio (𝑇𝑜𝑡𝑎𝑙 30% 37% 38% 35% Good Good Good
𝑙𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠)/(𝑇𝑜𝑡𝑎
𝑙 𝑎𝑠𝑠𝑒𝑡𝑠)
Debt to (Total liabilities / 416% 584% 622% 541% Not Not OK / Not
equity ratio Common stock Safe Safe Safe
equity)
Times (Earning before 13.39 11.31 11.43 12.04 Good OK Good
interest earn interest and
ratio taxes/interest)
PROFITABILITY
Gross profit (𝐺𝑟𝑜𝑠𝑠 29% 33% 26% 29% Good Good Good
margin 𝑝𝑟𝑜𝑓𝑖𝑡𝑠)/𝑆𝑎𝑙𝑒𝑠
Net profit (Earning available 25% 21% 16% 21% Good Good Good
margin from common
 stockholders/sales
)
Operating (𝑂𝑝𝑒𝑟𝑎𝑡𝑖𝑛𝑔 29% 33% 26% 29% Good Good Good
profit margin 𝑝𝑟𝑜𝑓𝑖𝑡𝑠)/𝑆𝑎𝑙𝑒𝑠

Financial (Total liabilities 1.42 1.59 1.62 1.54

leverage and stockholders’
multiple equity / common
stock equity)
Return on (𝐸𝑎𝑟𝑛𝑖𝑛𝑔𝑠 7% 5% 4% 5% OK Good Good
total assets 𝑎𝑣𝑎𝑖𝑙𝑎𝑏𝑙𝑒 𝑓𝑜𝑟
(ROA) 𝑐𝑜𝑚𝑚𝑜𝑛
𝑠𝑡𝑜𝑐𝑘ℎ𝑜𝑙𝑑𝑒𝑟𝑠)/
(𝑇𝑜𝑡𝑎𝑙 𝑎𝑠𝑠𝑒𝑡𝑠)
Return on (Return on total 4.9% 4.4% 2.5% 3.8% OK OK OK /
equity (ROE) assets (ROA) / Moderate
financial leverage
multiple)
 DUPONT SYSTEM
2017

Sales
5711.5

Cost of sales Earnings

Available for
1636.2 Administrativ Common
Stockholders
STATEMENTS
(IN MILLION)

e expense Net Profit

Selling and
INCOME

1635.2 Margin
distribution 287.3
0.25
70.9 Sales
Taxes
Finance cost 144.2 5711.5

36.1

Other income
165.0 ROA
0.07
Sales
5711.5 Total Assets
Current Assets Turnover
. 4577.4 0.23
Total Assets
ROE
Non-current 24,683.2
Assets 0.049
BALANCE SHEET

20,105.8
(IN MILLION)

Total
Total Equity Liabilities and
Current 17,349.8 Stockholder’s
Liabilities Equity
Financial
1912.1 Total 24,683.2
Leverage
Liabilities Multiple
Non-current
7,333.4 1.42
Liabilities Common
Stock Equity
5421.3
17,349.8
 DUPONT SYSTEM
2018

Sales
6477.9

Cost of sales Earnings

Available for
1986.9 Administrativ Common
STATEMENTS
(IN MILLION)

e expense Stockholders Net Profit

INCOME

Selling and Margin

286.2 1382.3
distribution
0.21
60.2 Sales
Taxes
Finance cost 182.3 6477.9

73.0

Other income
151.4
ROA
0.05
Sales
6477.9
Current Assets Total Assets
Turnover
. 6523.2
Total Assets 0.23
ROE
Non-current
27,877.2
Assets 0.044
BALANCE SHEET

21,354.0
( IN MILLION)

Total Equity
Total
Current 17,577.1 Liabilities and
Liabilities Stockholder’s
Total Equity Financial
2152.8 Liabilities Leverage
27,877.2 Multiple
Non-current 10.300.1
Liabilities Common 1.59
Stock Equity
8147.3
17,577.1
 DUPONT SYSTEM
2019

Sales
7008.1

Cost of sales Earnings

Available for
1894.6 Administrativ Common
STATEMENTS
(IN MILLION)

e expense Stockholders Net Profit

INCOME

Selling and Margin

310.0 1115.7
distribution
0.16
63.6 Sales
Taxes
Finance cost 96.9 7008.1

148.2

Other income
152.4 ROA
0.04

Sales

Current Assets 7008.1

Total Assets
Turnover
. 6390.7
Total Assets 0.25 ROE
Non-current
28,656.9
Assets 0.025
BALANCE SHEET

22,266.2
(IN MILLION)

Total
Total Equity
Liabilities and
17,686.8 Stockholder’s
Current Equity
Liabilities
Total 28,656.9 Financial
3512.1 Liabilities Leverage
Multiple
Non-current 10.970.1
Liabilities Common 1.62
Stock Equity
7458.0
17,686.8
3.0 ACCOR'S HOTEL FINANCIAL RATIO

INTRODUCTION

Accor's Hotel is a French multinational hospitality company that owns, manages

hotel and accommodation franchises. The company was founded in August 1967, 55
years ago. On that time, Paul Dubrule and Ge’rard Pelisson founded the SIEH
hospitality group and opened the first Novotel hotel outside France. However, in 1974,
Novotel's name was changed to Accor and then it was changed again to AccorHotel in
June 2015. The company is located in 110 countries, where it has over 5,199 hotels
and 300,000 employees from various countries to provide hotel and accommodation
services. The capacity they have is 762,000 rooms. It is a big amount of room they
provide and the facilities they gave also would made customers happy.

Accor's objective is to accelerate hotel development through organic and

acquisition growth. The Accor network continues to grow at a rapid rate.
Geographically, we are concentrating on consolidating our positions in markets where
we are already market leaders (Europe, Americas and Asia Pacific). Accor Hotel are
also concentrating our efforts in emerging areas, particularly in the Middle East,
Southeast Asia, and Sub-Saharan Africa. In the future, we'll focus on luxury, lifestyle,
resorts, and residential construction. Accor personnel are able to provide amazing
experiences to the clients because they are driven by a love for service. Through a
coaching, training, and mentorship programme, the hotel hope to provide each of them
with the tools they need to be self-sufficient and continue learning in order to
continually develop their abilities and be able to quickly adapt to an ever-changing
environment.

Food and beverage is an important part of the hotel hospitality and has always
had an impact on the reputation of our locations. However, the hotel environment has
changed which is new visitors have a growing need for greater simplicity, excellence,
and authenticity, and they are picky about where they stay. The general public has
evolved into true experts, and demanding experts at that. The guests spend a significant
amount of time reading internet reviews and ratings before selecting a location for lunch
or a drink. They are spending less and less time at the table, but they are hungry for
simplicity, quality, and transparency: they are concerned about the origins of the food
they eat and how it affects their health.

FINANCIAL RATIO

CURRENT RATIO
Current Ratio = 𝐶𝑢𝑟𝑟𝑒𝑛𝑡𝑠 𝑎𝑠𝑠𝑒𝑡𝑠
𝐶𝑢𝑟𝑟𝑒𝑛𝑡𝑠 𝑙𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒s

2017(in million) 2018 (in million) 2019 (in million)

$ 2,069.04 $ 4,276.70 $ 3,719.95

= = =
$ 3,536.09 $ 3,467.58 $ 3,248.89

= 0.585 = 1.20 = 1.15

According to the table provided above, that is the current ratio of Accor’s hotel
companies for 2017, 2018 and 2019. In 2017 the company's current ratio was 0.585 and
it showed a significant increased in 2018 of 1.20. However, in 2019 it has going down
for about 0.05 which is 1.15. The difference from 2017 to 2019 was 0.55. Even though
the company experienced in rising the current ratio and they able to cover and manage
the liabilities of their companies.

QUICK RATIO
Quick (acid-test) Ratio = 𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝑎𝑠𝑠𝑒𝑡𝑠−𝐼𝑛𝑣𝑒𝑛𝑡𝑜𝑟𝑦
𝑇𝑜𝑡𝑎𝑙 𝑐𝑢𝑟𝑟𝑒𝑛𝑡𝑠 𝑙𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑦

2017 (in million) 2018 (in million) 2019 (in million)

$ 2,069.04 − $ 9.47 $ 4,276.70 − $ 17.06 $ 3,719.95 − $ 22.22

= = =
$ 7,452.07 $ 7,430.03 $ 7,771.29

= 0.276 = 0.573 = 0.476

Based on the calculations made and attached above, the quick ratio of Accor's Hotel in
2017 was 0.276 and it rises to 0.573 in 2018. Then, it decreases in 2019 at 0.476. The
increase indicated was 0.2 from 2017 to 2019. This means that Accor's Hotel company
can still afford to pay their liabilities.

ACTIVITY RATIO
Inventory Turnover = 𝐶𝑜𝑠𝑡 𝑜𝑓 𝑔𝑜𝑜𝑑𝑠 sold
𝐼𝑛𝑣𝑒𝑛𝑡𝑜𝑟𝑦

2017 (in million) 2018 (in million) 2019 (in million)

$ 2,192.00 $ 1,650.24 $ 4,582.13

= = =
$ 13,720.87 $ 14,676.42 $ 15,797.86

= 0.1124 = 0.2900
= 0.1598 = 11.24 days = 29.00 days
= 15.98 days

The inventory of Accor’s Hotel in 2017 was 15.98 days. This means that the hotel get
the cash in the longest days that they received their guests and this also shown the worst
situation that the company has been faced. But in 2018 it shows the days they to get the
cash are better than before. The decrease were about 11.24 days. However, in 2019 in
shows the longest days that they received their guest which is 29.00 days compared to
2017. The increase shown it is not good for their hotel. So, its shows the days they
have been faced from shortest to the longest days.

AVERAGE COLLECTION PERIOD

Average Collection Period = 𝐴𝑐𝑐𝑜𝑢𝑛𝑡𝑠 𝑟𝑒𝑐e𝑖𝑣𝑎𝑏𝑙𝑒
𝐴𝑣𝑒𝑟𝑎𝑔𝑒 𝑠𝑎𝑙𝑒𝑠 𝑝𝑒𝑟 𝑑𝑎𝑦
= 𝐴𝑐𝑐𝑜𝑢𝑛𝑡𝑠 𝑟𝑒𝑐e𝑖𝑣𝑎𝑏𝑙𝑒
𝐴𝑛𝑛𝑢𝑎𝑙 𝑆𝑎𝑙𝑒𝑠/356
2017 (in million) 2018 (in million) 2019 (in million)

$ 476.92 $ 701.93 $ 721.11

= = =
$ 727.66/365 1650.24/365 $ 4852.13/365
 = 79.41 = 155.25 = 57.44

Based on the calculation above, the average collection period of Accor’s Hotel in 2017
is 79.41 days. It shows the shortest period for this company to collect an account
receivables. However, in 2018 the average collection period shows the increases to
155.25 days. It shows 75.84 days increasing compared to year 2017. After that, in 2019
they manage to reduced the average collection period again to 57.44 days which it is
the shortest period among this three years to collect the account receivables.

AVERAGE PAYMENT PERIOD

Average Payment Period = 𝐴𝑐𝑐𝑜𝑢𝑛𝑡𝑠 𝑝𝑎𝑦𝑎𝑏𝑙𝑒
𝐴𝑣𝑒𝑟𝑎𝑔𝑒 𝑝𝑢𝑟𝑐ℎ𝑎𝑠𝑒𝑠 𝑝𝑒𝑟 𝑑𝑎𝑦
= 𝐴𝑐𝑐𝑜𝑢𝑛𝑡𝑠 𝑝𝑎𝑦𝑎𝑏𝑙𝑒
∗𝐴𝑛𝑛𝑢𝑎𝑙 𝑝𝑢𝑟𝑐ℎ𝑎𝑠𝑒𝑠/365

2017 (in million) 2018 (in million) 2019 (in million)

$ 471.01 $ 484.64 $ 490.00

= = =
$ 718.31/365 $ 116.04/365 $ 1632.22/365

= 704.76days = 1524.42days = 109.57days

Based on the calculation that we provide above, the average payment period of Accor’s
Hotel is 704.76 days. Thats mean this hotel pay their current liabilities in 704.76 days
on 2017. The average payment period are increases in 2018 which is 1524.42 days. Its
is the longest days they took to pay their current liabilities. However in 2019, they
decrease the days they need to pay their current liabilities which 109.57 days. It is also
the shortest days they took among this three year. The longer is better because we
have cash rather than we need to pay first.
TOTAL ASSETS TURNOVERS
Total Assets Turnovers = 𝑆𝑎𝑙𝑒𝑠
𝑇𝑜𝑡𝑎𝑙 𝐴𝑠𝑠𝑒𝑡

2017 (in million) 2018 (in million) 2019 (in million)

$ 2192.04 $ 1650.24 $ 4582.13

= = =
$7817.75 $ 4299.20 $ 5594.44

= 0.28 = 0.38 = 0.82

The efficiency with which the hotel uses its assets to generate sales is measured by total
asset turnover. The total assets turnover of Accor's Hotel grew from 2017 to 2019. The
percentage increased from 0.28 in 2017 to 0.38 in 2018 and 0.82 in 2019. The higher
the total asset turnover, the better the hotel, and the higher the ratios, the more revenue
per ringgit assets the hotel generates.

DEBT
DEBT RATIOS

Total Liabilities
Debts Ratios =
Total Assets

2017 (in million) 2018 (in million) 2019 (in million)

$ 7,452.07 $ 7,430.03 $ 7,771.29

= = =
$ 13,720.87 $ 14,676.42 $ 15,797.86

= 0.54 = 0.51 = 0.49

= 54 % = 51 % = 49 %

The debt ratio is a measurement of how much of the hotel's total assets are financed by
its creditors. According to the data above, Accor's hotel debt ratio increased from 2017
to 2019. The debt ratio decreases from 54 percent in 2017 to 51 percent in 2018, and it
continued to decreases to 49 percent in 2019. The decreases was about 5 percent from
2017 to 2019.

This debt ratio serves as a measure of a company's financial risk, or the possibility that
the company's total assets may not be sufficient to pay off its debts and interest. Because
a company's inability to pay its debts and interest payments might lead to its closure,
debt ratio is an important predictor of a company's long-term financial viability.

DEBTS TO EQUITY RATIOS

𝑇𝑜𝑡𝑎𝑙 𝐿𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠
Debts to Equity Ratios =
𝐶𝑜𝑚𝑚𝑜𝑛 𝑆𝑡𝑜𝑐𝑘 𝐸𝑞𝑢𝑖𝑡𝑦

2017 (in million) 2018 (in million) 2019 (in million)

$ 7452.07 $ 7430.03 $ 7771.29

= = =
$ 984.55 $ 959.66 $ 920.05

= 7.57 = 7.74 = 8.45

The debt-to-equity ratio is a measurement of the proportion of total liabilities and

common stock equity used to fund a company's total assets. Accor's Hotel's debt-to-
equity ratio went from 7.57 in 2017 to 7.74 in 2018. In 2019, it will be increased by
8.45 percent.

A score greater than 1.00 indicates that more assets are financed by debt than by
shareholder money, and vice versa. As a result, an increasing trend in the debt-to-equity
ratio is concerning because it indicates that the percentage of a company's assets
financed by debts is increasing, and vice versa. As a result, the debt-to-equity ratio of
Accor's Hotel is in terrific shape.

PROFITABILITY
GROSS PROFIT MARGIN
𝐺𝑟𝑜𝑠𝑠 𝑃𝑟𝑜𝑓𝑖𝑡
Gross Profit Margin =
𝑠𝑎𝑙𝑒𝑠

2017 (in million) 2018 (in million) 2019 (in million)

$ 1301.78 $ 1688.28 $ 2225.56

= $ 2192.04 = $ 1650.24 = $ 4582.13

= 0.59 = 1.02 = 0.49

=59% = 102% = 49%

The percentage of each sale that remains after the hotel has paid for its goods is referred
to as the gross profit margin ratio. From 2017 to 2018, Accor's hotel's gross profit
margin grew. The gross profit margin improved by 43 percent from 59 percent in 2017
to 102 percent in 2018. It dropped from 102 percent in 2018 to 49 percent this year.
The gross margin ratio is a metric for determining profitability. Higher values suggest
that more cents per dollar of revenue are earned, which is advantageous because more
profit is available to pay non-production costs.

OPERATING PROFIT MARGIN

𝑂𝑝𝑒𝑟𝑎𝑡𝑖𝑛𝑔 𝑃𝑟𝑜𝑓𝑖𝑡𝑠
Operating Profit Margin =
𝑆𝑎𝑙𝑒𝑠

2017 (in million) 2018 (in million) 2019 (in million)

$ 583.43 $ 572.24 $ 593.33

= = =
$ 2192.04 $ 1650.24 $ 4582.13

= 0.27 = 0.35 = 0.13

From 2017 to 2018, Accor's Hotel operating profit margin improved by a percentage
point. In 2017, the operational profit margin improved by 8% from 27 percent to 35
percent in 2018, before falling to 13 percent in 2019. A higher operating margin ratio
is beneficial since it signifies that the organization is converting more sales into
operational income. Over time, a higher operating margin ratio indicates that
profitability is improving. In general, a company with a larger operating margin ratio
will be more efficient in regulating its overall costs.

RETURN OF ASSETS
𝐸𝑎𝑟𝑛𝑖𝑛𝑔𝑠 𝐴𝑣𝑎𝑖𝑙𝑎𝑏𝑙𝑒 𝑓𝑜𝑟 𝐶𝑜𝑚𝑚𝑜𝑛 𝑆𝑡𝑜𝑐𝑘ℎ𝑜𝑙𝑑𝑒𝑟
Return of Assets (ROA) =
𝑇𝑜𝑡𝑎𝑙 𝐴𝑠𝑠𝑒𝑡𝑠

2017 (in million) 2018 (in million) 2019 (in million)

$ 1029.59 $ 964.73 $ 903.33

= $ 7817.75 = $ 4299.20 = $ 5594.44

= 0.13 = 0.22 = 0.16

According to the table above, Accor's hotel's return on total assets improved from 13
percent in 2017 to 22 percent in 2018. In 2019, however, the return on total assets was
reduced from 22 percent to 16 percent. It demonstrates that the company's management
is careful with its assets, but it still needs to be more diligent to guarantee that the return
on total assets is improving.

RETURN ON EQUITY

𝐸𝑎𝑟𝑛𝑖𝑛𝑔𝑠 𝐴𝑣𝑎𝑖𝑙𝑎𝑏𝑙𝑒 𝑓𝑜𝑟 𝐶𝑜𝑚𝑚𝑜𝑛 𝑆𝑡𝑜𝑐𝑘ℎ𝑜𝑙𝑑𝑒𝑟

Return on Equity =
𝐶𝑜𝑚𝑚𝑜𝑛 𝑆𝑡𝑜𝑐𝑘 𝐸𝑞𝑢𝑖𝑡𝑦

2017 (in million) 2018 (in million) 2019 (in million)

$ 1029.59 $ 964.73 $ 903.33

= = =
$ 6400.24 $ 7200.23 $ 7581.11

= 0.16 = 0.13 = 0.12

According to the table above, Accor's Hotel's return on equity has been inconsistent
during the last three years. The return on equity fell by 3% in 2018, from 16 percent in
2017 to 13 percent in 2018. The decrease in 2018 was due to the company's income not
being in good shape. In 2019, however, the return on equity was reduced as well, but
by a smaller percentage, from 13 percent to 12 percent. It's because the hotel's
management isn't aware of the need of ensuring that stockholders receive a return on
their investment.
 YEAR EVALUATION
RATIO FORMULA 2017 2018 2019 INDUSTR OVERAL
Y L
AVERAGE
2019

Current ratio (𝐶𝑢𝑟𝑟𝑒𝑛𝑡 2.21108 1.239 1.722 1.7242 OK

𝑎𝑠𝑠𝑒𝑡𝑠)/(𝐶𝑢𝑟𝑟𝑒𝑛𝑡 8 0
𝑙𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠)
Acid test ratio (𝐶𝑢𝑟𝑟𝑒𝑛𝑡 2.2082 1.234 1.715 1.7194 OK
𝑎𝑠𝑠𝑒𝑡𝑠−𝐼𝑛𝑣𝑒𝑛𝑡𝑜𝑟𝑦)/( 9 1
𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝑙𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠)
Inventory (𝐶𝑜𝑠𝑡 𝑜𝑓 𝑔𝑜𝑜𝑑𝑠 209.19 119.9 102.3 143.80 OK
turnover 𝑠𝑜𝑙𝑑)/𝐼𝑛𝑣𝑒𝑛𝑡𝑜𝑟𝑦 0 1
Average (𝐴𝑐𝑐𝑜𝑢𝑛𝑡𝑠 279.41 155.2 57.44 97.37 OK
collection 𝑟𝑒𝑐𝑒𝑖𝑣𝑎𝑏𝑙𝑒)/(𝐴𝑣𝑒 days 5 days days
period 𝑟𝑎𝑔𝑒 𝑠𝑎𝑙𝑒𝑠 𝑝𝑒𝑟
𝑑𝑎𝑦)
Total assets 𝑆𝑎𝑙𝑒𝑠/(𝑇𝑜𝑡𝑎𝑙 0.2084 0.383 0.819 0.4704 GOOD
turnover 𝑎𝑠𝑠𝑒𝑡𝑠) 8 1
Debt ratio (𝑇𝑜𝑡𝑎𝑙 0.95% 1.33% 1.81% 1.36% OK
𝑙𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠)/(𝑇𝑜𝑡𝑎
𝑙 𝑎𝑠𝑠𝑒𝑡𝑠)
Debt to equity (Total liabilities / 7.57% 7.74% 8.45% 7.92% OK
ratio Common stock
equity)
Times interest (Earning before 0.7029 3.129 0.561 1.4644 OK
earn ratio interest and 2 2
taxes/interest)
Gross profit (𝐺𝑟𝑜𝑠𝑠 0.60% 1.02% 0.49% 0.70% OK
margin 𝑝𝑟𝑜𝑓𝑖𝑡𝑠)/𝑆𝑎𝑙𝑒𝑠
Net profit (Earning available 0.47% 0.58% 0.16% 0.40% OK
margin from common
stockholders/sales
)
Operating profit (𝑂𝑝𝑒𝑟𝑎𝑡𝑖𝑛𝑔 0.27% 0.35% 0.13% 0.25% OK
margin 𝑝𝑟𝑜𝑓𝑖𝑡𝑠)/𝑆𝑎𝑙𝑒𝑠
Financial (Total liabilities 13.9362 15.29 17.17 15.4668 GOOD
leverage and stockholders’ 34 07
multiple equity / common
stock equity)
Return on total (𝐸𝑎𝑟𝑛𝑖𝑛𝑔𝑠 0.13% 0.22% 0.16% 0.17% OK
assets (ROA) 𝑎𝑣𝑎𝑖𝑙𝑎𝑏𝑙𝑒 𝑓𝑜𝑟
𝑐𝑜𝑚𝑚𝑜𝑛
𝑠𝑡𝑜𝑐𝑘ℎ𝑜𝑙𝑑𝑒𝑟𝑠)/
(𝑇𝑜𝑡𝑎𝑙 𝑎𝑠𝑠𝑒𝑡𝑠)
Return on equity (Return on total 0.16% 0.13% 0.11% 0.13% OK
(ROE) assets (ROA) /
financial leverage
multiple)
 The DuPont system of analysis with application to Accor Hotel Company (2017)-
IN MILLION

Sales
$2192.04
Earnings
Cost of Goods Available for
Sold Commons
Stockholders
$1981.07
$1029.59
Operating Net Profit
Expenses Margin
STATEMENTS

$718.34 0.47%
Sales
INCOME

Interest $2192.04
Expense ROA
$710.01 0.13%

Preferred
Stock
Dividens
$9.09
Taxes
$57.95

Sales
Current Assets ROE
$2192.04 Total Assets
$2069.04 Turnover 1.81%

Net Fixed 0.28%

Total Assets
Assets
$13720.87
$11651.83
BALANCE SHEET

Total
Liabilities and
Current Stockholder’s
Stockholders’ Equity = Total
Liabilities
Equity Assets
$3536.09 Financial
$1049.70 $13720.87
Leverage
Multiple
Total
Non-current Common
Liabilities 13.94
Liabilities Stock Equity
$7452.07
$37349.50 $984.55
 The DuPont system of analysis with application to Accor Hotel Company (2018)-
IN MILLION

Sales
$1650.24
Earnings
Cost of Goods Available for
Sold Commons
Stockholders
$2045.51
$964.73
Operating Net Profit
STATEMENTS

Expenses Margin
INCOME

$1116.04 0.58.%
Sales
Interest $1650.24
Expense ROA
$807.55 0.22%

Preferred
Stock
Dividens
$4.54
Taxes
$6.82

Current Assets Sales ROE

$4276.70 $1650.24 3.36%

Total Assets
Turnover
Net Fixed
0.38%
Assets Total Assets
$10399.72 $14676.42
BALANCE SHEET

Total
Liabilities and
Stockholders’ Stockholder’s
Current Equity Equity = Total Financial
Liabilities Assets Leverage
$1009.10 Multiple
$3467.58 $14676.42
Total 15.29
Non-current Common
Common
Liabilities
Liabilities Stock Equity
Stock Equity
$7430.03
$3902.88 $959.66
$959.66
 The DuPont system of analysis with application to Accor Hotel Company (2019)-
IN MILLION

Sales
$4582.13
Earnings
Cost of Goods Available for
Sold Commons
Stockholders
$2273.33
$903.33
STATEMENTS

Operating Net Profit

INCOME

Expenses Margin
$1632.22 0.16.%
Sales
Interest $4582.13
Expense ROA
$935.72 0.13%

Preferred
Stock
Dividens
$5.68
Taxes
$13.63

Sales ROE
Current Assets $4582.13 Total Assets 2.23%
Turnover
$3719.95
Total Assets 0.82%
Net Fixed
Assets $15797.86

$12077.91
BALANCE SHEET

Total
Liabilities and
Stockholder’s
Equity = Total
Current Stockholders’
Assets Financial
Liabilities Equity
Leverage
$3248.89 $15797.86
$1252.22 Multiple
17.17
Non-current Total Common
Liabilities Liabilities Stock Equity
$4545.98 $7771.29 $920.05
4.0 MANDARIN ORIENTAL HOTEL
INTRODUCTION

Mandarin Oriental is one of the world's premier luxury hotel companies, with 33 luxury
hotels and seven residences in 23 countries across the world, each representing the
brand's oriental heritage. It has eight standalone hotels, ten hotel and residence projects,
and two residences in the works around the world, all of which are expected to open
within the next five years. It is one of the most well-known and well-managed
hospitality brands in Asia, with over 13,000 workers.

The Mandarin Oriental brand was founded in Hong Kong in 1963 and was established
out of a partnership between The Mandarin in Hong Kong and The Oriental in Bangkok
in 1974. When it first opened, the Mandarin was the island's tallest structure, and it
quickly became a historic monument. The Oriental was also known as one of the most
storied hotels in the world. Both of these hotels were historic icons with a reputation
for good service. In 1985, these two hotels and others in the region were united under
a single company and brand under the name Mandarin Oriental Hotel Group.

The Group opened more hotels in the region during the next 44 years. It opened its San
Francisco in 1987, and its London flagship hotel opened in the mid-1990s. The Group
cemented its position in the US market by opening the 'Mandarin Oriental New York'
in the historic The Landmark Mandarin Oriental, Hong Kong's second premium hotel,
opened in 2005 and featured spacious, modern facilities noted for their magnificent
design. With a property in the ideal position of Rue St. Honoré, the Group entered the
Paris market in 2011 to tremendous acclaim. Its expansion in China continued in 2013,
with the opening of two hotels in Guangzhou and Shanghai. Both hotels got the Hurun
'Hot Hotel' award in its first year of operation, which is one of China's most prestigious
honors.

Mandarin Oriental is the only luxury hotel group in the world with ten Forbes 'Five-
Star' spas spread across its global portfolio, more than any other. This contributed to
the Group's reputation as one of the most elegant and luxury hotel companies in the
region, recognised for providing comfortable and well-appointed accommodations,
great facilities, and some of the region's finest restaurants and bars. This was backed up
by superb service inspired by the hotel's Asian history, making Mandarin Oriental a
favourite among locals and luxury guests alike.
 FINANCIAL RATIO CALCULATION
LIQUIDITY RATIO

𝑐𝑢𝑟𝑟𝑒𝑛𝑡 𝑎𝑠𝑠𝑒𝑡𝑠
Current ratio = 𝑐𝑢𝑟𝑟𝑒𝑛𝑡 𝑙𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠

2017 2018 2019

RM 294,500,000 RM 1,243,000,000 RM 376,000,000

= 1.71 = 1.75 = 1.93
RM 171,800,000 RM 709,000,000 RM 194,600,000

Based on the calculation, it is found that the current ratio of Mandarin Oriental Hotel is
increased from year 2017 to 2019. It increases from 1.71 in 2017 to 1.75 in 2018 and increases
to 1.93 in 2019. 2019 has a greater degree of liquidity because it has the highest current ratio.

𝑐𝑢𝑟𝑟𝑒𝑛𝑡 𝑎𝑠𝑠𝑒𝑡𝑠−𝑖𝑛𝑣𝑒𝑛𝑡𝑜𝑟𝑦
Quick ratio = 𝑡𝑜𝑡𝑎𝑙 𝑐𝑢𝑟𝑟𝑒𝑛𝑡 𝑙𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠

2017 2018 2019

= RM 1,243,000,000 − RM 6,600,000 RM 194,600,000

RM 294,500,000−RM 6,400,000 RM 376,000,000−RM 6,200,000
=
RM 171,800,000
RM 709,000,000
1.68 1.9
= 1.74

Based on the calculation, quick ratio of Mandarin Oriental Hotel in 2017 is 1.68, in 2018 is 1.74 and
in 2019 is 1.9. However, the company ratio is upper than 1, it means company can regard to
maintaining liquidity and not having to depend on selling inventory to pay its liabilities and enough
quick assets to pay for its current liabilities.
ACTIVITY RATIO

𝑐𝑜𝑠𝑡 𝑜𝑓 𝑔𝑜𝑜𝑑𝑠 𝑠𝑜𝑙𝑑

Inventory Turnover = 𝑖𝑛𝑣𝑒𝑛𝑡𝑜𝑟𝑦

2017 2018 2019

𝑅𝑀 389,700,000 𝑅𝑀 389,100,000 𝑅𝑀 364,700,000

= 60.9 = 58.9 = 58.8
𝑅𝑀 6,400,000 𝑅𝑀 6,600,000 𝑅𝑀 6,200,000

Inventory turnover of Mandarin Oriental Hotel in 2017 is 60.9, in 2018 is 58.9 and in 2019
it decreased to 58.8. Mandarin Oriental Hotel’s inventory was sold and replaced over the
most in 2017 because it has the highest ratio.

𝑎𝑐𝑐𝑜𝑢𝑛𝑡𝑠 𝑟𝑒𝑐𝑒𝑖𝑣𝑎𝑏𝑙𝑒
Average collection period= 𝑎𝑣𝑒𝑟𝑎𝑔𝑒 𝑠𝑎𝑙𝑒𝑠 𝑝𝑒𝑟 𝑑𝑎𝑦

2017 2018 2019

RM 100,200,000 RM 95,900,000 RM 97,000,000

RM 610,800,000/365
RM 613,700,000/365 RM 566,500,000/365
= 59.9 days
= 57.0 days = 62.5 days

The average collection period in 2019 is the highest which is 62.5 days, while in 2017 is 59.9
days and in 2018 is 57 days. It shown that 2017 is the fastest to collect invoiced amounts
from customers. This measure is used to determine the effectiveness of a company’s credit
granting policies and collection efforts.
 𝑎𝑐𝑐𝑜𝑢𝑛𝑡𝑠 𝑝𝑎𝑦𝑎𝑏𝑙𝑒
Average Payment Period = 𝑎𝑣𝑒𝑟𝑎𝑔𝑒 𝑝𝑢𝑟𝑐ℎ𝑎𝑠𝑒 𝑝𝑒𝑟 𝑑𝑎𝑦

2017 2018 2019

RM 2,600,000 RM 254,200,000 RM 2,500,000

RM 249,408,000/365
RM272,370,000/365 RM 233,408,000/365
= 3.8 days
= 340.65 days = 3.9 days

The average payment of Mandarin Oriental Hotel is 3.8 days in 2017. Then, it sudden
increased to 340.65 days in 2018. It decreased back to 3.9 days in 2019. It shows here that
the amount of account payable in 2018 is the highest so that is why it took the longest to
make the payment back.

𝑠𝑎𝑙𝑒𝑠
Total Asset Turnover = 𝑡𝑜𝑡𝑎𝑙 𝑎𝑠𝑠𝑒𝑡𝑠

2017 2018 2019

𝑅𝑀 610,800,000 𝑅𝑀 613,700,000 𝑅𝑀 566,500,000

𝑅𝑀 2,019,400,000
𝑅𝑀 2,911,500,000 𝑅𝑀 5,108,700,000
= 0.30
= 0.21 = 0.11

Total turnover asset for Mandarin Oriental Company was decreased from 0.30 in year 2017
to 0.21 in year 2018.and it was decreased back to 0.11 in year 2019. The higher the asset
turnover ratio, the more efficient a company is at generating revenue from its assets.
Conversely, if a company has a low asset turnover ratio, it indicates it is not efficiently using
its assets to generates sales
DEBT RATIO

𝑡𝑜𝑡𝑎𝑙 𝑙𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠
Debt ratio = 𝑡𝑜𝑡𝑎𝑙 𝑎𝑠𝑠𝑒𝑡𝑠

2017 2018 2019

𝑅𝑀 739,300,000 𝑅𝑀 778,300,000 𝑅𝑀 991,200,000

𝑅𝑀 2,019,400,000
𝑅𝑀 2,911,500,000 𝑅𝑀 4,770,000,000
= 0.366 = 36.6%
= 0.27 = 27% = 0.21 = 21%

Mandarin Oriental Hotel’s debt ratio was decreased from 36.6% in 2017 to 27% in year 2018
to 21% in year 2019. A very high debt ratio indicates high risk for both debt-holders and
equity investors. Due to the high risk, the company may not be able to obtain finance at good
terms or may not be able to raise any more money at all.

𝑡𝑜𝑡𝑎𝑙 𝑙𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠
Debt to equity ratio = 𝑐𝑜𝑚𝑚𝑜𝑛 𝑠𝑡𝑜𝑐𝑘 𝑒𝑞𝑢𝑖𝑡𝑦

2017 2018 2019

𝑅𝑀 739,300,000 𝑅𝑀 778,300,000 𝑅𝑀939,600,000

𝑅𝑀 1,280,100,000
𝑅𝑀 1,179,900,000 𝑅𝑀 4,053,400,000
= 0.578 = 57.8%
= 0.67 = 67% = 0.24 = 24%

Debt to equity ratio was increased from 57.8% in year 2017 to 67% in year 2018. But it was
decreased back in year 2019 which is 24%. It shown that 2018 is unfavorable due to its high
value of debt to equity because the business relies more on external lenders thus it is at higher
risk.
 𝑒𝑎𝑟𝑛𝑖𝑛𝑔 𝑏𝑒𝑓𝑜𝑟𝑒 𝑖𝑛𝑡𝑒𝑟𝑒𝑠𝑡 𝑎𝑛𝑑 𝑡𝑎𝑥𝑒𝑠
Times Interest Earned Ratio = 𝑖𝑛𝑡𝑒𝑟𝑒𝑠𝑡

2017 2018 2019

𝑅𝑀 69,500,000 𝑅𝑀 62,500,000 𝑅𝑀 45,400,000

𝑅𝑀 1,300,000
𝑅𝑀 2,200,000 𝑅𝑀 3,400,000
= 53.5%
= 28.4% = 13.4%

Times interest earned ratio for 2017 is 53.5% and decreased to 28.4 in year 2018 and
decreased again to 13.4% in year 2019. The result is a number that shows how many times a
company could cover its interest charges with its earnings.

PORFITABILITY
Gross Profit Margin

𝑔𝑟𝑜𝑠𝑠 𝑝𝑟𝑜𝑓𝑖𝑡𝑠
Gross profit margin = 𝑠𝑎𝑙𝑒𝑠

2017 2018 2019

𝑅𝑀 221,100,000 𝑅𝑀 224,600,000 𝑅𝑀 201,800,000

𝑅𝑀 610,800,000
𝑅𝑀 613,700,000 𝑅𝑀 566,500,000
= 0.362 = 36.2%
= 0.11 = 11% = 0.36 = 36%

Gross profit margin for Mandarin Oriental Hotel in 2017 is 36.2% and it decreased to 11%
in year 2018. But it decreased back in year 2019 which is 36%. It shows that the company’s
sells of its inventory or merchandise are not profitable in year 2018.
 𝑜𝑝𝑒𝑟𝑎𝑡𝑖𝑛𝑔 𝑝𝑟𝑜𝑓𝑖𝑡𝑠
Operating profit margin = 𝑠𝑎𝑙𝑒𝑠

2017 2018 2019

𝑅𝑀 69,000,000 𝑅𝑀 69,600,000 𝑅𝑀 29,000,000

𝑅𝑀 610,800,000
𝑅𝑀 613,700,000 𝑅𝑀 566,500,000
= 0.113 = 11.3%
= 0.113 = 11.3% = 0.051 = 5.1%

Operating profit margin of Mandarin Oriental Hotel in 2017 is 11.3% and it maintained the
value in year 2018. While in 2019, the value decreased to 5.1%. 2017 and 2018 if favorable
because it has the higher value of operating profit margin. A higher value of operating
margin ratio is favorable which indicates that more proportion of revenue is converted to
operating income.

𝑒𝑎𝑟𝑛𝑖𝑛𝑔𝑠 𝑎𝑣𝑎𝑖𝑙𝑎𝑏𝑙𝑒 𝑓𝑜𝑟 𝑐𝑜𝑚𝑚𝑜𝑛 𝑠𝑡𝑜𝑐𝑘ℎ𝑜𝑙𝑑𝑒𝑟𝑠

Net profit margin = 𝑠𝑎𝑙𝑒𝑠

2017 2018 2019

𝑅𝑀 157,100,000 𝑅𝑀 200,000 𝑅𝑀2,918,400,000

𝑅𝑀 610,800,000
𝑅𝑀 613,700,000 𝑅𝑀 566,500,000
= 0.257 = 25.7%
= 0.0003 = 0.03% = 5.2 = 52%

Net profit margin in 2017 was higher than 2018 which is 25.7% and 0.03% respectively. It
increased again in year 2019 which is 52%. The net profit margin illustrates how much of
each dollar in revenue collected by a company translates into profit.
 𝑒𝑎𝑟𝑛𝑖𝑛𝑔𝑠 𝑎𝑣𝑎𝑖𝑙𝑎𝑏𝑙𝑒 𝑓𝑜𝑟 𝑐𝑜𝑚𝑚𝑜𝑛 𝑠𝑡𝑜𝑐𝑘ℎ𝑜𝑙𝑑𝑒𝑟𝑠
Earning per share = 𝑛𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑠ℎ𝑎𝑟𝑒𝑠 𝑜𝑓 𝑐𝑜𝑚𝑚𝑜𝑛 𝑠𝑡𝑜𝑐𝑘 𝑜𝑢𝑡𝑠𝑡𝑎𝑛𝑑𝑖𝑛𝑔

2017 2018 2019

𝑅𝑀 157,100,000 𝑅𝑀 200,000 𝑅𝑀2,918,400,000

1,274,000,000
𝑅𝑀 1,239,200,000 𝑅𝑀 4,113,000,000
=RM 0.12
= RM 0 = RM 0.71

The earning per share of Mandari Oriental Hotel in 2017 is RM 0.12. it decreased in year
2018 which is RM0 and increased again year 2019 which is RM 0.71.

𝑒𝑎𝑟𝑛𝑖𝑛𝑔𝑠 𝑎𝑣𝑎𝑖𝑙𝑎𝑏𝑙𝑒 𝑓𝑜𝑟 𝑐𝑜𝑚𝑚𝑜𝑛 𝑠𝑡𝑜𝑐𝑘ℎ𝑜𝑙𝑑𝑒𝑟𝑠

Return on total asset (ROA)= 𝑡𝑜𝑡𝑎𝑙 𝑎𝑠𝑠𝑒𝑡𝑠

2017 2018 2019

𝑅𝑀 157,100,000 𝑅𝑀 200,000 𝑅𝑀2,918,400,000

𝑅𝑀 2,019,400,000
𝑅𝑀 2,911,500,000 𝑅𝑀 5,108,700,000
=0.078 = 7.8%
= 0.007% = 0.57 = 57%

Based on the calculation, the return of total asset for 2017 is 7.8% and it decreased to 0.007%
in year 2018. But the return of total asset increased again to 57% in year 2019. It shows that
the Mandarin Oriental Hotel can’t manage its assets to produce profits during a period.
 𝑒𝑎𝑟𝑛𝑖𝑛𝑔𝑠 𝑎𝑣𝑎𝑖𝑙𝑎𝑏𝑙𝑒 𝑓𝑜𝑟 𝑐𝑜𝑚𝑚𝑜𝑛 𝑠𝑡𝑜𝑐𝑘ℎ𝑜𝑙𝑑𝑒𝑟𝑠
Return on equity = 𝑐𝑜𝑚𝑚𝑜𝑛 𝑠𝑡𝑜𝑐𝑘 𝑒𝑞𝑢𝑖𝑡𝑦

2017 2018 2019

𝑅𝑀 157,100,000 𝑅𝑀 200,000 𝑅𝑀2,918,400,000

𝑅𝑀 1,217,200,000
𝑅𝑀 1,179,900,000 𝑅𝑀 4,053,400,000
=0.129 = 12.9%
= 0.02% = 0.72 = 72%

Based on calculation, the return on equity in 2017 is 12.9% and it decreased to 0.02% in
2018. It increased again in year 2019 which is 72%. It shows that the Mandarin Oriental
Hotel is not good in generating returns on the investment it received from it shareholders due
to their unbalanced ratio of return on equity.
 Ratio Formula 2017 2018 2019 Industry Overall
average*
Liquidity
Current ratio 𝑐𝑢𝑟𝑟𝑒𝑛𝑡 𝑎𝑠𝑠𝑒𝑡𝑠 1.71 1.75 1.93 1.8 GOOD
𝑐𝑢𝑟𝑟𝑒𝑛𝑡 𝑙𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠

Quick (acid- 𝑐𝑢𝑟𝑟𝑒𝑛𝑡 𝑎𝑠𝑠𝑒𝑡𝑠 − 𝑖𝑛𝑣𝑒𝑛𝑡𝑜𝑟𝑦 1.68 1.74 1.9 1.77 GOOD
test) ratio 𝑡𝑜𝑡𝑎𝑙 𝑐𝑢𝑟𝑟𝑒𝑛𝑡 𝑙𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑦

Activity
Inventory 𝑐𝑜𝑠𝑡 𝑜𝑓 𝑔𝑜𝑜𝑑𝑠 𝑠𝑜𝑙𝑑 60.9 58.9 58.8 59.53 GOOD
turnover 𝑖𝑛𝑣𝑒𝑛𝑡𝑜𝑟𝑦

Average 𝑎𝑐𝑐𝑜𝑢𝑛𝑡𝑠 𝑟𝑒𝑐𝑒𝑖𝑣𝑎𝑏𝑙𝑒𝑠 59.9 57 days 62.5 59.8 OK

collection 𝑎𝑣𝑒𝑟𝑎𝑔𝑒 𝑠𝑎𝑙𝑒𝑠 𝑝𝑒𝑟 𝑑𝑎𝑦 days days days
period

Average 𝑎𝑐𝑐𝑜𝑢𝑛𝑡𝑠 𝑝𝑎𝑦𝑎𝑏𝑙𝑒 3.8 340.65 3.9 116.12 POOR

payment 𝑎𝑣𝑒𝑟𝑎𝑔𝑒 𝑝𝑢𝑟𝑐ℎ𝑎𝑠𝑒𝑠 𝑝𝑒𝑟 𝑑𝑎𝑦 days days days days
period

Total asset 𝑠𝑎𝑙𝑒𝑠 0.3 0.21 0.11 0.21 OK

turnover 𝑡𝑜𝑡𝑎𝑙 𝑎𝑠𝑠𝑒𝑡𝑠

Debt
Debt ratios 𝑡𝑜𝑡𝑎𝑙 𝑙𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠 36.6% 27% 21% 28.2% OK
𝑡𝑜𝑡𝑎𝑙 𝑎𝑠𝑠𝑒𝑠𝑡

Debt to 𝑡𝑜𝑡𝑎𝑙 𝑙𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠 57.8% 67% 24% 49.6% POOR

equity 𝑐𝑜𝑚𝑚𝑜𝑛 𝑠𝑡𝑜𝑐𝑘 𝑒𝑞𝑢𝑖𝑡𝑦

Times 𝑒𝑎𝑟𝑛𝑖𝑛𝑔 𝑏𝑒𝑓𝑜𝑟𝑒 𝑖𝑛𝑡𝑒𝑟𝑒𝑠𝑡 𝑎𝑛𝑑 𝑡𝑎𝑥𝑒𝑠 53.5% 28.4% 13.4% 31.77% POOR
interest 𝑖𝑛𝑡𝑒𝑟𝑒𝑠𝑡
earned ratio

Profitability
Gross profit 𝑔𝑟𝑜𝑠𝑠 𝑝𝑟𝑜𝑓𝑖𝑡𝑠 36.2% 11% 36% 27.73% POOR
margin 𝑠𝑎𝑙𝑒𝑠
Operating 𝑜𝑝𝑒𝑟𝑎𝑡𝑖𝑛𝑔 𝑝𝑟𝑜𝑓𝑖𝑡𝑠 11.3% 11.3% 5.1% 9.23 OK
profit 𝑠𝑎𝑙𝑒𝑠
margin

Net profit 𝑒𝑎𝑟𝑛𝑖𝑛𝑔 𝑎𝑣𝑎𝑖𝑙𝑎𝑏𝑙𝑒 𝑓𝑜𝑟 𝑐𝑜𝑚𝑚𝑜𝑛 𝑠𝑡𝑜𝑐𝑘ℎ𝑜𝑙𝑑𝑒𝑟𝑠 25.7% 0.03% 52% 25.91% POOR
margin 𝑠𝑎𝑙𝑒𝑠

Earning per 𝑒𝑎𝑟𝑛𝑖𝑛𝑔 𝑎𝑣𝑎𝑖𝑙𝑎𝑏𝑙𝑒 𝑓𝑜𝑟 𝑐𝑜𝑚𝑚𝑜𝑛 𝑠𝑡𝑜𝑐𝑘ℎ𝑜𝑙𝑑𝑒𝑟 RM RM0 RM RM 0.28 GOOD
share 𝑛𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑠ℎ𝑎𝑟𝑒𝑠 𝑜𝑓 𝑐𝑜𝑚𝑚𝑜𝑛 𝑠𝑡𝑜𝑐𝑘 𝑜𝑢𝑡𝑠𝑡𝑎𝑛𝑑𝑖𝑛𝑔 0.12 0.71

Return on 𝑒𝑎𝑟𝑛𝑖𝑛𝑔 𝑎𝑣𝑎𝑖𝑙𝑎𝑏𝑙𝑒 𝑓𝑜𝑟 𝑐𝑜𝑚𝑚𝑜𝑛 𝑠𝑡𝑜𝑐𝑘ℎ𝑜𝑙𝑑𝑒𝑟𝑠 7.8% 0.007% 57% 21.6% POOR
total assets 𝑡𝑜𝑡𝑎𝑙 𝑎𝑠𝑠𝑒𝑡𝑠
(ROA)

Return on 𝑒𝑎𝑟𝑛𝑖𝑛𝑔 𝑎𝑣𝑎𝑖𝑙𝑎𝑏𝑙𝑒 𝑓𝑜𝑟 𝑐𝑜𝑚𝑚𝑜𝑛 𝑠𝑡𝑜𝑐𝑘ℎ𝑜𝑙𝑑𝑒𝑟𝑠 12.9% 0.02% 72% 28.31% POOR
equity 𝑐𝑜𝑚𝑚𝑜𝑛 𝑠𝑡𝑜𝑐𝑘 𝑒𝑞𝑢𝑖𝑡𝑦
(ROE)
The DuPont system of Mandarin Oriental (2017)- IN MILLION

Sales
RM610,8
00,000
Earning
available for
Cost of common
goods stockholders
sold RM79,300,0
RM389,7 00 Net profit
00,000 margin
Operating
13%
expense Sales
RM69,00 RM610,8
0,000 00,000

Interest
expense
RM1,300,0
00

Return on
Interest
total asset
expense
RM1,300,0
(ROA)
00 19%

Preferred
stock
dividends
RM56,500,00
0

Current assets Return on

Sales
RM294,500,0
00 RM610,8 common
00,000 Total equity
asset (ROE)
Net fixed turnover
29%
assets Total 1.46
RM122,700,0
00
assets
RM417,2
Total liabilities
00,000
and
Current
liabilities
Total stockholders’
RM171,800,0 liabilities equity=total
00 RM679,9 assets
00,000 RM1,953,900,00
Long-term 0
Financial
debt Stockhold
RM508,100,0 Common leverage
ers’ stock equity
00 multiplier
equity RM1,280,1
RM1,274, 00,000 1.53
000,000
The DuPont system of Mandarin Oriental (2018)- IN MILLION

NET PROFIT
SALES EARNING MARGIN
AVAILABLE
RM 613,700,000 25.4%
RM 155,900,000

COST OF
GOODS SALES
SALES
RM 389,100,000 RETURN ON
RM 613,700,000 EQUITY (ROE)

OPERATING 42.0 %
EXPENSE
RM9,600,000

RETURN ON
INTEREST
ASSETS (ROA)
EXPENSE
66.0%
RM 2,200,000

TAXES
RM 19,100,000

PREFERRED
STOCK
DIVIDENS
RM37,800,000

CURRENT TOTAL ASSETS

ASSETS TOTAL ASSETS
RM 1,599,200,000
RM 1,243,000,000 TURNOVER
2.6
NET FIXED SALES
ASSETS
RM 613,700,000
RM 356,200,000 TOTAL
LIABILITIES AND
TOTAL STOCK HOLDERS
LIABILITIES FINANCIAL
CURRENT EQUITY = TOTAL
LEVERAGE
LIABILITIES RM 716,300,000 ASSETS
MULTIPLIER
RM 709,000,000 RM1,955,500,000
1.7
STOCKHOLDER
EQUITY
COMMON
LONG TERM
RM 1,239,200,000 STOCK
DEBT
RM 1,179,900,000
RM7,300,000
The DuPont system of Mandarin Oriental (2019)- IN MILLION
5.0 COMPARISON BETWEEN THE COMPANIES

5.1 GENTING MALAYSIA HOTEL

Genting Malaysia shows that this particular company not in the un-great condition but remain
their good achievement and also still in effort to achieve more as hugh as possible to be in line
with others company. The net profit margin for Genting Malaysia among the three years did
not record a very significant change which is it’s only 0.04 to 0.05 in difference with average
of 0.21. This means that they still manage to gain profits even in a least amount of value. The
return on total assets (ROA) also recorded not a very significant change in depreciation which
is in 2017 is 0.07 turn to 0.05 in 2018 and continue decrease to 0.04 in 2019. They should post
mortem and re-evaluate whether they can produce more profits from the current assets or they
may face the loss. Lastly, the return on equity (ROE) shows that in 2017, their return on equity
is 0.049. followed by 0.044 in 2018 and also 0.025 in 2019 with average for 3 years is 0.038.
This is also a wonderful result for them, but they must ensure that their shareholders will
continue to invest in the future

5.2 ACCOR HOTEL

Accor's Hotel is not a corporation that is in bad shape. They continue to strive for greater
success on par with comparable hotels. The net profit margin for Accor's hotels differs
significantly from that of the other two hotels. Due to the epidemic, there will be a decline in
2019. Typically, guests will book the hotel during the school holidays in December. In addition,
the ROA only differs by around 0.09. They should reassess if they can make more money with
their current assets or if they will lose money in the future. The company's return on equity
(ROE) in 2018 was 3.36 percent, which is an excellent result. This is also a wonderful result
for them, but they must ensure that their shareholders will continue to invest in the future.
5.3 MANDARIN ORIENTAL HOTEL

Mandarin oriental hotel show that this company is very good when they faced a certain problem
and situation within their business. They know how to tackle their problem and solve it so they
won't repeat it for the upcoming year. Even though they have their own problems to solve but
they still have a good achievement and have a lot of effort to achieve more to be on line with
other company. From what has been conclude, we can see the effort from their yearly profit.
For example their net profit margin, among the three years it shows a very huge changes over
the year. In 2017 the percentage is only 25.7% and then dropped dramatically in 2018 with
0.03% but they rise and had 52% in 2019. Besides that, we can look on their return on total
assets (ROA). In 2017 the had 7.8% only. They also have a small percentage in 2018 which is
0.0007% but they rise and manage to increase their percentage which is 57%. Lastly the return
on equity (ROE) shows that in 2017 the manage to get 12.9% but the data plunged in 2018 with
0.02% and the success to increase the percentage in 2019 with 72%. This show how the
company manage to control the problem they had and overcome it. They should take note the
cause of the problem and what would they do if the same problems arise again and find a
solution for other problems too.

6.0 CONCLUSION

Overall, based on the comparison, Genting Malaysia Hotel is the best company among the three
company in managing their assets and finances. Even though, the profit of Genting Malaysia
Hotel is not as much as Mandarin Oriental Hotel Company in 2019, but they manage to
maintained the amount of earning received by stockholders in every year. There is not much
difference of ROE between years and the company never had a big loss because they know
how to generate returns on the investment it received from its shareholders. It shows that
Genting Malaysia Hotel always trying their best to improve and maintain their profit. In
conclusion, Genting Malaysia Hotel controlled their finances very well so that is why it is the
best company.
7.0 REFERENCES

Annual Reports. (n.d.). GENTING MALAYSIA. Retrieved November 12, 2021, from

https://www.gentingmalaysia.com/investor_relations/annual_reports/

Accor - Annual and half yearly information. (n.d.). ACCOR HOTEL. Retrieved November

12, 2021, from https://group.accor.com/en/finance/events-and-announcements/annual-

and-half-yearly-information

Financial Reports | Mandarin Oriental Hotel Group. (n.d.). Mandarin Oriental The Hotel

Group. Retrieved November 12, 2021, from

https://www.mandarinoriental.com/investors/financial-information/reports

8.0 LINK VIDEO

https://drive.google.com/file/d/1Htq-
j4LZeCCs3QBRkZuVSk9k5DPF3Kt8/view?usp=sharing
(PERSONAL EMAIL)