FIN470-Cases in Financial Management-Present a brief macroeconomic analysis of the regional and UAE economy within which Abu Dhabi Hotels operates.
Unit 1# -Assignment – Margin Analysis
Abu Dhabi Hotels
Spring 2018
LEADING QUESTIONS
1. Present a brief macroeconomic analysis of the regional and UAE economy within which Abu
Dhabi Hotels operates. (You may wish to do an Internet search for this part).
2. Perform a brief industry analysis of the Hospitality (Hotel) Industry (You may wish to do an
Internet search for this part & use the Global Industry Classification Standards uploaded on
the LMS as a guide for industry classification).
3. Perform an initial big picture analysis of AD Hotel’s generic value drivers and render a
general opinion about each value driver, for the period: 2007 – 2012
• Sales Growth
• Profit Margins
• Asset Utilization
4. Perform a margin analysis of AD Hotels using some of the basic analytical tools we discussed
and comment on the trends, including:
• Percentage Change Analysis
• Common-Size Analysis
• Financial Ratio Analysis
• Comparative Industry Analysis (where data is available)
5. Perform a Dupont Analysis on AD Hotels and comment.
6. Could you have predicted the financial distress that AD Hotels suffered? Use the Z- score
method as backup for your position.
7. Based on all the analyses you have performed above, present an ‘Objective Analyst Opinion’
on AD Hotels as the conclusion to your report (*Minimum 1 page).
8. As an addendum to your full report, briefly suggest ways AD Hotel could/should take to
improve key weaknesses you have identified.
