Abu Dhabi National Hotels: What Went Wrong?
(5 pages of text)
In 2012, Abu Dhabi National Hotels had been struggling and the performance of the company had significantly declined, especially that of its main hotel business. Net profit had been decreasing since 2009 and, with this shrinking profitability, shareholders were losing confidence in the company. The share price of the company had also deteriorated and was expected to decline further. With the drop in net profit year after year, investors were very concerned about the company’s performance and the direction of its future growth. The company had five business segments — hotels, retail services, catering, transportation and holding — and a deep analysis of the company’s performance areas and plan to improve these were needed.
The case can be used for both undergraduate and postgraduate accounting students. It can also be used for executive development programs, such as accounting for non-accountants or non-finance professionals, to develop skills in financial statement analysis and interpretation. The case aims to help students achieve the following objectives:
- To understand financial ratios with a focus on a company’s profitability, liquidity, efficiency and leverage.
- To understand segment ratio analysis and its importance for a company with different operating segments.
- To analyze and evaluate the financial performance of a company over a period of time with the help of trend analysis, while drawing interpretations.
Accommodation & Food Services
United Arab Emirates, Large, 2014
$5.30 CAD / $5.00 USD Printed Copy
$4.50 CAD / $4.25 USD Permissions
$4.50 CAD / $4.25 USD Digital Download