Question

1 Approved Answer

Posted on Sep 28, 2024

Blackboard Remaining Time: 1 hour, 58 minutes, 52 seconds. Question Completion Status: QUESTION 21 35 points Save Answer The tables below display some of the

image text in transcribed

Blackboard Remaining Time: 1 hour, 58 minutes, 52 seconds. Question Completion Status: QUESTION 21 35 points Save Answer The tables below display some of the key financial ratios calculated for Accor Hotels (AC FP) during the last five years. Discuss the ROE Decomposition of the company and evaluate the drivers of its performance during this period. What trends can you identify in the company's performance? What do you believe has been the effect of the COVID-19 crisis on the company's financial statements? Accor Hotels (AC FP) In Millions of USD except Per Share 12 Months Ending FY 2017 FY 2018 12/31/2017 12/31/2018 16.0868.04 0.230.26 FY 2019 12/31/2019 11.46 FY 2020 FY 2021 Last 12M 12/31/2020 12/31/2021 12/31/2021 -122.64 3.86 0.13 FY 2022 Est FY 2023 Est 12/31/2022 12/31/2023 2.80 7.75 Profit Margin Asset Turnover 0.30 0.21 Financial Leverage 2.162.13 2.05 2.24 2.53 Return on Common Equity 7.9937.68 7.05 -35.71 2.05 2.58 8.45 Effective Tax Rate 121.11 22.89 - 105.31 Net Interest Expense 64.9 59.4 105.1067.3 3,133.803,876.5 Revenue 4,532.8 1,850.7 2,606.8 2,606.8 3,426.4 4,125.8 Net Operating Profit after Tax (NOPAT) 484.00-17.0 601.7 -2,031.7 336.5 Working Capital 4,349.60836.0 2,368.2 916.9 504.4 Total Non-Current Assets 6,580.8010,532.4 9,997.2 8,397.4 8,643.1 Net Debt 2,269.801,344.5 1,475.5 1,613.7 2,075.7 1,904.8 1,546.6 Net Assets 6,952.307,378.5 7,832.2 5,086.8 5,179.5 Total Equity 6,952.307,378.5 7,832.2 5,086.8 5,179.5 Working Capital to Sales 1.240.66 0.35 0.88 0.27 3.78 Net Fixed Asset Turnover 4.533.56 3.45 1.82 Accounts Payable Turnover Days 2,130.071,811.81 1,412.75 2,810.88 3,337.14 Days Sales Outstanding - DSO 51.1256.72 57.06 133.55 101.93 Inventory Days 43.5855.23 59.70 153.12 101.39 Cash Ratio 0.370.93 0.80 0.85 0.65 Quick Ratio 0.51.14 1.02 1.03 0.91 Current Ratio 2.211.24 1.72 1.26 1.17 Total Debt to Total Equity 51.5562.38 52.27 91.85 77.51 Net Interest Coverage -184.57 11.37 - Click Save and Submit to save and submit. Click Save All Answers to save all answers. Save and Submit Save All Answers Close Window Blackboard Remaining Time: 1 hour, 58 minutes, 44 seconds. Question Completion Status: Effective Tax Rate 121.11 22.89 Net Interest Expense - 59.4 1,850.7 105.1067.3 3,133.803,876.5 484.00-17.0 Revenue 64.9 4,532.8 601.7 2,368.2 Net Operating Profit after Tax (NOPAT) -2,031.7 Working Capital 4,349.60836.0 916.9 Total Non-Current Assets 6,580.8010,532.4 9,997.2 8,397.4 Net Debt 2,269.801,344.5 1,475.5 1,613.7 Net Assets 6,952.307,378.5 7,832.2 5,086.8 Total Equity 6,952.307,378.5 7,832.2 5,086.8 Working Capital to Sales 1.240.66 0.35 0.88 Net Fixed Asset Turnover 4.533.56 2,130.071,811.81 3.45 1,412.75 57.06 1.82 2,810.88 Accounts Payable Turnover Days Days Sales Outstanding - DSO Inventory Days 51.1256.72 133.55 43.5855.23 59.70 153.12 Cash Ratio 0.370.93 0.80 0.85 Quick Ratio 0.51.14 1.02 1.03 Current Ratio 2.211.24 1.72 1.26 Total Debt to Total Equity 51.5562.38 52.27 91.85 Net Interest Coverage -184.57 11.37 Cash From Operations 670.6 -567.4 1,063.10537.4 -1,397.501,798.9 Cash from Investing Activities 369.4 1,010.4 -1,192.3 -295.7 Cash from Financing Activities Dividends Paid 38.40-347.3 -184.10-361.4 -329.1 -2.3 Capital Expenditures -572.80-3,355.6 -357.1 -199.8 CFO to Sales 33.9213.86 14.79 -30.66 CFO to Total Debt 0.320.11 0.16 -0.13 Gross Margin 97.5897.68 97.36 96.98 Operating Margin 14.352.22 16.67 -100.12 Profit Margin 16.0868.04 11.46 -122.64 Source: Bloomberg For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). Click Save and Submit to save and submit. Click Save All Answers to save all answers. - 105.3 2,606.8 336.5 504.4 8,643.1 2,075.7 5,179.5 5,179.5 0.27 3.78 3,337.14 101.93 101.39 0.65 0.91 1.17 77.51 -318.2 -133.7 -467.2 -1.2 -97.0 -12.21 -0.08 97.55 14.84 3.86 2,606.8 3.426.4 1,904.8 -214.9 8.75 2.80 4,125.8 1,546.6 -242.6 14.16 7.75 Save All Answers Close Window Save and Submit Blackboard Remaining Time: 1 hour, 58 minutes, 52 seconds. Question Completion Status: QUESTION 21 35 points Save Answer The tables below display some of the key financial ratios calculated for Accor Hotels (AC FP) during the last five years. Discuss the ROE Decomposition of the company and evaluate the drivers of its performance during this period. What trends can you identify in the company's performance? What do you believe has been the effect of the COVID-19 crisis on the company's financial statements? Accor Hotels (AC FP) In Millions of USD except Per Share 12 Months Ending FY 2017 FY 2018 12/31/2017 12/31/2018 16.0868.04 0.230.26 FY 2019 12/31/2019 11.46 FY 2020 FY 2021 Last 12M 12/31/2020 12/31/2021 12/31/2021 -122.64 3.86 0.13 FY 2022 Est FY 2023 Est 12/31/2022 12/31/2023 2.80 7.75 Profit Margin Asset Turnover 0.30 0.21 Financial Leverage 2.162.13 2.05 2.24 2.53 Return on Common Equity 7.9937.68 7.05 -35.71 2.05 2.58 8.45 Effective Tax Rate 121.11 22.89 - 105.31 Net Interest Expense 64.9 59.4 105.1067.3 3,133.803,876.5 Revenue 4,532.8 1,850.7 2,606.8 2,606.8 3,426.4 4,125.8 Net Operating Profit after Tax (NOPAT) 484.00-17.0 601.7 -2,031.7 336.5 Working Capital 4,349.60836.0 2,368.2 916.9 504.4 Total Non-Current Assets 6,580.8010,532.4 9,997.2 8,397.4 8,643.1 Net Debt 2,269.801,344.5 1,475.5 1,613.7 2,075.7 1,904.8 1,546.6 Net Assets 6,952.307,378.5 7,832.2 5,086.8 5,179.5 Total Equity 6,952.307,378.5 7,832.2 5,086.8 5,179.5 Working Capital to Sales 1.240.66 0.35 0.88 0.27 3.78 Net Fixed Asset Turnover 4.533.56 3.45 1.82 Accounts Payable Turnover Days 2,130.071,811.81 1,412.75 2,810.88 3,337.14 Days Sales Outstanding - DSO 51.1256.72 57.06 133.55 101.93 Inventory Days 43.5855.23 59.70 153.12 101.39 Cash Ratio 0.370.93 0.80 0.85 0.65 Quick Ratio 0.51.14 1.02 1.03 0.91 Current Ratio 2.211.24 1.72 1.26 1.17 Total Debt to Total Equity 51.5562.38 52.27 91.85 77.51 Net Interest Coverage -184.57 11.37 - Click Save and Submit to save and submit. Click Save All Answers to save all answers. Save and Submit Save All Answers Close Window Blackboard Remaining Time: 1 hour, 58 minutes, 44 seconds. Question Completion Status: Effective Tax Rate 121.11 22.89 Net Interest Expense - 59.4 1,850.7 105.1067.3 3,133.803,876.5 484.00-17.0 Revenue 64.9 4,532.8 601.7 2,368.2 Net Operating Profit after Tax (NOPAT) -2,031.7 Working Capital 4,349.60836.0 916.9 Total Non-Current Assets 6,580.8010,532.4 9,997.2 8,397.4 Net Debt 2,269.801,344.5 1,475.5 1,613.7 Net Assets 6,952.307,378.5 7,832.2 5,086.8 Total Equity 6,952.307,378.5 7,832.2 5,086.8 Working Capital to Sales 1.240.66 0.35 0.88 Net Fixed Asset Turnover 4.533.56 2,130.071,811.81 3.45 1,412.75 57.06 1.82 2,810.88 Accounts Payable Turnover Days Days Sales Outstanding - DSO Inventory Days 51.1256.72 133.55 43.5855.23 59.70 153.12 Cash Ratio 0.370.93 0.80 0.85 Quick Ratio 0.51.14 1.02 1.03 Current Ratio 2.211.24 1.72 1.26 Total Debt to Total Equity 51.5562.38 52.27 91.85 Net Interest Coverage -184.57 11.37 Cash From Operations 670.6 -567.4 1,063.10537.4 -1,397.501,798.9 Cash from Investing Activities 369.4 1,010.4 -1,192.3 -295.7 Cash from Financing Activities Dividends Paid 38.40-347.3 -184.10-361.4 -329.1 -2.3 Capital Expenditures -572.80-3,355.6 -357.1 -199.8 CFO to Sales 33.9213.86 14.79 -30.66 CFO to Total Debt 0.320.11 0.16 -0.13 Gross Margin 97.5897.68 97.36 96.98 Operating Margin 14.352.22 16.67 -100.12 Profit Margin 16.0868.04 11.46 -122.64 Source: Bloomberg For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). Click Save and Submit to save and submit. Click Save All Answers to save all answers. - 105.3 2,606.8 336.5 504.4 8,643.1 2,075.7 5,179.5 5,179.5 0.27 3.78 3,337.14 101.93 101.39 0.65 0.91 1.17 77.51 -318.2 -133.7 -467.2 -1.2 -97.0 -12.21 -0.08 97.55 14.84 3.86 2,606.8 3.426.4 1,904.8 -214.9 8.75 2.80 4,125.8 1,546.6 -242.6 14.16 7.75 Save All Answers Close Window Save and Submit