To analyze Accor's financial performance, we'll compute various financial ratios using the provided information. Financial ratios help in assessing a company's profitability, efficiency, liquidity, solvency, and market performance. Let's calculate some key ratios step by step:

Profitability Ratios: Gross Profit Margin:

Gross Profit Margin = (Revenue - Operating Expense) / Revenue

GrossProfitMargin= (594859484134)100%=(59481814)100%30.51%

Operating Profit Margin:

Operating Profit Margin = (Operating Profit Before Tax) / Revenue

Operating Profit Margin= (594812)100% 0.20%

Net Profit Margin:

Net Profit Margin = (Profits After Taxes) / Revenue

Net Profit Margin= (5948404)100%6.79%

Liquidity Ratios: Current Ratio:

Current Ratio = Current Assets / Current Liabilities

CurrentRatio=233623100.99

Quick Ratio:

Quick Ratio = (Current Assets - Inventory) / Current Liabilities (Inventory information is not provided, so we cannot compute this ratio.)

Solvency Ratios: Debt-to-Equity Ratio:

Debt-to-Equity Ratio = Total Liabilities / Total Equity

Debt-to-EquityRatio=394986782.20

Efficiency Ratios: Asset Turnover:

Asset Turnover = Revenue / Total Assets

 

Asset Turnover= (86785948)0.69

 

5. Strategic Recommendations [6 Marks] Based on your analysis, propose strategic recommendations to the CEO of Accor regarding the future direction of Accor's strategy. Provide justifications for each recommendation