Case_24 - S hangr i-La Hotels Financial Ratios P...

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Shangri-La Hotels Financial Ratios Profitability 2002 2003 2004 2005 2006 Operating Profit Margin 0.20 0.25 0.20 0.22 0.27 Return on Assets 0.01 0.02 0.03 0.04 0.04 Return on Stockholder Equity 0.02 0.03 0.06 0.06 0.07 Net Profit Margin 0.11 0.13 0.16 0.18 0.20 Liquidity Current Ratios 1.28 1.11 1.30 1.18 1.77 Working Capital $ 75.00 $ 36.20 $ 97.20 $ 73.70 $ 272.20 Leverage Debt to Assets 44% 45% 47% 44% 47% Debt to Equity 0.78 0.81 0.88 0.79 0.88 Times Interest Earned 2.92 2.93 2.95 5.73 8.41 Profitability Ratios Using the Operating Profit Margin ratio and the Net Profit Margin ratio, we can see that the profitability of the firm without regard to interest charges and income taxes. The trend of this ratio should be upward. For Shangri-La Hotels, we see that there are positive profits for the years 2002-2006. The trend is upward excluding year 2004 where operating profit margin fell by 5%. This can be attributed to the massive expansion of the company during this time. The return on assets and the
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Case_24 - S hangr i-La Hotels Financial Ratios P...

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