Financial analysis is a commonly used tool to analyze the performance of a business and considered the single most important indicator of company success. It is at the basis of strategic decision making, and your ability to read and analyze financial information and use Excel in doing so is essential to a successful career as a hospitality manager at any level. In this case, you work for me as an operations analyst. A venture capital company has hired you to help determine if they should get into the bidding for company (use your project company)(La Quinta)*. You should calculate the ratios yourself on excel(SEE ATTACHMENT). Then use the sources presented at the library to pull comparative ratios on two other competitors for your analysis.
Please calculate the following ten ratios for both years (2016 & 2017):
Debt-to Equity Ratio
Net Profit Margin
Return on Assets
Earnings Per Share
Price –Earnings Ratio
In this process you have to use formulas and show mastery of Excel. You will lose 50% of the grade for the assignment if you do not use formulas wherever possible/needed, regardless of its overall quality or the quality of your analysis.
You will write a single-spaced, professional memo to me (no less than 400 words, not more than 450 words) in which you:
Present your analysis regarding the strength or weakness of these ratios (you are going to want to compare them to 2 other companies *HILTON+IHG*) in other words interpret the results; use any and all ratios you feel necessary to make your point.
What makes XYZ(LA QUINTA)* an attractive or unattractive takeover target?