Contents

• Financial Statement Analysis of Gulf Hotel Oman 2
• Introduction 2
• Industry Chosen – Hotel Industry 3
• Gulf Hotels Oman 3
• Analysis of Key Financial Items: 3
• Ratio Analysis 4
• Profitability Ratio 5
• Short Term Liquidity Ratio 5
• Capital Structure Ratios 5
• Asset Turnover Ratios 6
• Return Ratios 6
• Comparison with Peers in the Industry - (Muscat Securities Market, 2014) 6
• Conclusion 8
• Recommendation 9
• Bibliography 9
• Appendix 11
• Financial Statements for Ubar Hotels Oman – In Million OMR- (Financial Times, 2014) 11
• Financials for Gulf Hotel Oman - In Million OMR - (Financial Times, 2014) 14
• Financials for Al Buraimi Hotel- In Million OMR - (Financial Times, 2014) 17

Description

All listed companies need to follow the Generally Accepted Accounting Principles while reporting their results to the prime lender Central Bank of Oman and Capital Market Authority, which is the financial regulator in the country, as well as the shareholders. Also all listed companies need to follow the International Finance Reporting Standards issued by the International Accounting Standard Board (IFRS, 2014). The common format set by the IFRS is pertinent so as to enable the investors to compare balance sheet and profit and loss statements of different companies and then be able to take an informed decision. Financial statement analysis is important because companies can determine the strengths and weaknesses in their business and hence enables them to review the financial decisions taken during the fiscal year. As for the stockholders they can find out the efficiency of the management in employing resources available to generate profits and create wealth for shareholders.