situation of listed hotels on Nepal Stock Exchange. It looks back to the period of eight years during 2067 to 2074 employing different financial ratios. To evaluate and describe
COMPARISON OF FINANCIAL PERFORMANCE OF LISTED HOTELS32the financial performance of the listed hotels in NEPSE, ANOVA is used as the tool to examine the likeliness of the proposed hypotheses.Managerial implicationThe financial rations used in the study i.e. ROA and ROE gauge a company's ability to generate earnings from its investments. But they don't exactly represent the same thing. Of all the fundamental ratios that investors look at, one of the most importantis return on equity. It's a basic test of how effectively a company's management uses investors' money. ROE shows whether management is growing the company's value at anacceptable rate. ROA offers a different take on management's effectiveness, reveals how much profit a company earns for every dollar of its assets. Assets include things like cash in the bank, accounts receivable, property, equipment, inventory and furniture. Whereas, NIAT shows what the company earned after all its expenses, charge-offs, depreciation, and taxes have been subtracted. This calculation is usually shown as both a total dollar amount and a per share calculation. NIAT is one of the most analyzed figures on a company’s financial statement. The amount recorded provides an indication of the profitability of a company which determines whether the firm can compensate its investors and shareholders. An increase in profits over multiple periods typically leads to an increase in the business’ stock price. A company with a net income that is negative or below average may be a start-up firm, an aggressively growing firm, or a firm experiencing decline in sales or poor expense management.
COMPARISON OF FINANCIAL PERFORMANCE OF LISTED HOTELS33ConclusionThis study presents the ratio analysis of the three hotel firms listed on the Nepal Stock Exchange (NEPSE) for the fiscal years 2010 - 2017. The financial rations used to compare the financial performance of the hotels were ROA, ROE and NIAT. The data were obtained from various sources, mainly from the Annual reports published by the hotels. The averages of the ratios were calculated for analysis and interpretation. The study identifies financial strengths of the studied hotel companies: a good performance inprofitability and the ability to meet long-term obligations. On the other hand, asset utilization and operating activities should be improved. This will enhance overall profitability and thus the hotel competitiveness.Future direction of the studyThe study overviews the existing frameworks used to identify and measure financial constraints. The future studies can choose from wide range of different measures with perhaps complementary advantages and disadvantages. Thus, it is hard to clearly point a superior approach. The present study can be extended in several directions.