MOHG2 Essay Example | Topics and Well Written Essays - 1250 words

MOHG2 - Essay Example These analysis form an integral part of the financial statement analysis, especially from the investors point of view, who always strive to invest in countries having strengthen and stabilizing financial ratios and representing an upward trend. It is of great significance that the ratios must be benchmarked against a standard in order for them to possess a meaning. Keeping that into account, the comparison is usually conducted between companies portraying same business and financial risks, between industries and between different time periods of the same company. The company under consideration is Mandarin Oriental International Limited and in this report analysis of the financial performance of the company for the financial year 2011 with the financial year 2010 has been conducted in order to draw attention to various financial trends and significant changes over the period. The analysis is divided into three main categorize namely Profitability, Liquidity and Gearing. Profitability ratios identify how efficiently and effectively a company is utilizing its resources and how successful it has been in generating a desired rate of return for its shareholders and investors. Liquidity ratios measure the ability of the company to quickly convert its asset into liquid cash to settle its short term liabilities. Whereas, the Gearing ratios identifies the extent to which the company is financed through debt and to what degree the operations are being conducted from the finance raised through raising equity capital or otherwise. Mandarin Oriental International Limited is regarded as one of the prominent when it comes to luxurious hotels. As quoted from the annual report of Mandarin for the financial year 2011, â€Å"Mandarin Oriental International Limited is an international hotel investment and management group with deluxe and first class hotels, resorts and residences in sought-after destinations around the world. The group now operates, or under