Analysis of the Financial Statements
Jurys Inn is a hospitality company that manages a portfolio of hotels within the United Kingdom and Northern Ireland. As one of the Company Accountant for the UK region, you have been tasked to produce a report for the Chief Executive addressing the following:
1. Calculate suitable ratios for 2019 and 2020 to aid the analysis of the financial information included within the attached financial statements. Discuss the trends seen in these ratios in detail, and draw appropriate conclusions about the profitability, liquidity and gearing of the hotel chain.
2. Discuss why an understanding of ratios and their fluctuations is essential for Hotel management in analysing the information seen in their financial statements.
3. Discuss the benefits and limitations of using ratio analysis to aid decision making within the hotel and tourism industry.