Analyzing the Financial

Performance

JOHN KEELLS HOTELS PLC

VS
AMAYA LEISURE PLC

OUTLINE
INTRODUCTION
RISK ANALYSIS
COMPARATIVE INCOME STATEMENT &
BALANCE SHEET ANALYSIS
CASH FLOW ANALYSIS
CONCLUSION

SHORT TERM LIQUIDITY RISK

OPERATING CASH FLOWS TO CURRENT LIABILITY RATIO
YEAR

JKH

AMAYA LEISURE

2009/10

0.255

0.250

2010/11

0.141

0.321

2011/12

0.716

0.016

2012/13

0.810

0.131

2013/14

0.972

0.072

SHORT TERM LIQUIDITY RISK

WORKING CAPITAL RATIOS
ACCOUNTS RECEIVABLE TURNOVER

RECEIVABLE TURNOVER
DAYS

YEAR

JKH

AMAYA LEISURE

JKH

AMAYA LEISURE

2009/10

6.606

4.948

55

74

2010/11

4.923

4.952

74

74

2011/12

5.798

5.615

63

65

2012/13

9.408

6.266

39

58

2013/14

13.296

6.765

27

54

SHORT TERM LIQUIDITY RISK

WORKING CAPITAL RATIOS
INVENTORY TURNOVER

INVENTORY TURNOVER
DAYS

YEAR

JKH

AMAYA LEISURE

JKH

AMAYA LEISURE

2009/10

14.247

8.281

26

44

2010/11

14.011

9.085

26

40

2011/12

15.937

10.599

23

34

2012/13

17.031

10.234

21

36

2013/14

18.999

16.235

19

22

SHORT TERM LIQUIDITY RISK

WORKING CAPITAL RATIOS
ACCOUNTS PAYABLE TURNOVER

PAYABLES TURNOVER DAYS

YEAR

JKH

AMAYA LEISURE

JKH

AMAYA LEISURE

2009/10

1.730

1.535

211

238

2010/11

1.874

1.606

195

227

2011/12

2.677

1.607

136

227

2012/13

3.028

1.581

121

231

2013/14

3.881

2.736

94

133

SHORT TERM LIQUIDITY RISK

CASH CONVERSION CYCLE
YEAR

JKH

AMAYA LEISURE

2009/10

-130

-120

2010/11

-95

-113

2011/12

-50

-128

2012/13

-60

-137

2013/14

-47

-57

SHORT TERM LIQUIDITY RISK

REVENUE TO CASH RATIO
YEAR

JKH

AMAYA LEISURE

2009/10

10.813

50.352

2010/11

12.282

42.078

2011/12

17.151

27.818

2012/13

16.453

34.847

2013/14

16.462

36.090

LONG TERM SOLVENCY RISK

LIABILITIES TO ASSETS RATIO
YEAR

JKH

AMAYA LEISURE

2009/10

0.375

0.197

2010/11

0.920

0.154

2011/12

0.407

0.144

2012/13

0.351

0.159

2013/14

0.313

0.162

LONG TERM SOLVENCY RISK

LIABILITIES TO SHAREHOLDERS EQUITY RATIO
YEAR

JKH

AMAYA LEISURE

2009/10

0.601

0.269

2010/11

0.604

0.183

2011/12

0.843

0.171

2012/13

0.676

0.192

2013/14

0.630

0.195

LONG TERM SOLVENCY RISK

LONG TERM DEBT TO LONG TERM CAPITAL RATIO
YEAR

JKH

AMAYA LEISURE

2009/10

0.226

0.007

2010/11

0.203

0.014

2011/12

0.679

0.033

2012/13

0.298

0.021

2013/14

0.387

0.010

LONG TERM SOLVENCY RISK

LONG TERM DEBT TO SHAREHOLDERS EQUIRT
RATIO
YEAR

JKH

AMAYA LEISURE

2009/10

0.293

0.007

2010/11

0.255

0.014

2011/12

0.515

0.034

2012/13

0.424

0.021

2013/14

0.323

0.010

LONG TERM SOLVENCY RISK

OPERATING CASH FLOWS TO TOTAL
LIABILITIES RATIO
YEAR

JKH

AMAYA LEISURE

2009/10

0.139

0.166

2010/11

0.077

0.206

2011/12

0.316

0.009

2012/13

0.287

0.081

2013/14

0.377

0.051

Comparative Analysis Income Statement

John Keells Hotels PLC

Revenue
cost of
sales
GP

Other
income

Admin.
Expense
Dis.
Expense
Finance
Exp.
Other
Ope. Exp.
PBT
Tax
Expense
Profit

2010 2011 2012 2013 2014

1.42 9.71 29.81
16.79
%
%
%
26%
17%
% Revenue
cost of
5.19 10.76 33.10
17.53 sales
%
%
%
28%
21%
%
4.50 9.26
25.66 15.60 16.60 GP
%
%
28%
%
%
%

11.10
% 363%

19.67
%
8.63
%

-38%

4.04 13.93
%
%

73.59 Other
23% 8.85%
% income

34%

Admin.
11.14
Expense
% 8.69% Distributi
on
16.92 18.72
%
% Finance
Exp.
23.71 13.58
%
%

26.17
38%
55%
%
9.20 14.85 12.40 109.64
%
%
%
%
12.10 9.15
29.01
13.61
%
%
18%
%
24%
% PBT
1.28
47.09 34.18 Tax
% 64%
65% -6.47%
%
% Expense
4.94 2590 229.94 38.99 96.63 576.50 Profit
%
%
%
%
%
% After Tax
127.7
39.96 53.00

Amaya Leisure PLC

2010
28.35
%
18.95
%
33.7
%1

2011 2012 2013

2014
32.7 24.36 26.89
0%
%
% 9.99% 24.46%
16.0
2% 4.40% 5.32% 10.53% 11.04%
41.1 32.64 12.07
6%
%
% 9.09% 23.74%

68.77 37.9 34.45

%
5%
%

-41%

-20%

2.25%

1.27 2.60
21.84
%
%
16%
% 11.92% 10.73%
14.09 24.5
%
3%
33%
25% 10.18% 21.36%
8.79 74.5
%
5% 8.63% 9.63% 11.60% -7.18%

33.96 31.38
134.27
108% 564%
%
% 1.94%
%
51.84
99.92
145.94
% 334% 213%
% 30.92%
%
91.66
36.60 27.68
130.05
% 568%
%
% -0.49%
%

Comparative Balance Sheet

John Keells Hotels PLC
2011

2012

2013

2014

Non
ccurrent
Assets
P.P.E
Lease
Assets
Other NonCurrent
assets
Current
Assets

24.46 50.60
%
%
35.82% -1.92% 16.30%
135.51
%
9.07% -7.96% -4.67% 32.98%
0.69% -1.73% 2.75%

Amaya Leisure PLC

-2.36% -0.16%

44.65
%
5.74% 8.45% 12.64%
137.28 30.05
Other
%
%
-29.54% 84.08% 40.44%
Receivable
Total Assets -0.17% 30%
8.15% 4.76% 10.77%
Inventories -8.27%

Total Equity 4.50% 18% 18.38% 11.04% 12.98%

Non-Current 11.04
Liability
%
83% -2.24% -21.00% 12.18%
Current
Liability
-5.28% 2.93% -14.39% 20.85% 1.02%
Total equity
30.52
and Liability -0.17%
%
8.15% 4.76% 43.26%

2011

2012

2013

2014

Non
current
Assets
P.P.E
324% 41.20%
21%
7.25%
Lease
Assets
3.05% -3.05% -3.10% -3.25%
Other
NonCurrent
assets
2.05% 12.55% -11.77%
Current
Assets
Inventorie
s
-0.63% 18.86% 3.76%
Other
Receivable

Total
Assets

Total
Equity
NonCurrent
Liability
Current
Liability
Total
equity
and
Liability

25.36%
-1.58%

0.77%

5.49%

0.05% -40.55% 10.40%

70.23
%
31.04% 19.02%

3.65%

-6.61%

6.09%

31.59%

178% 33.30% 16.90%

5.71%

58.47%

-18% 52.00% -5.59% -11.86%

4.12%

-65%

16.96%

5.16%

6.11%

31.53%

6.96%

62%

70% 31.00% 19.02%

Statement of cash flow?

Cashgenerated and used during the
time intervalthrough;
Operating activities
Investing activities
Financing activities

Cash and cash equivalents at

the end of the year

Cash flows from operating,

investing and financing activities
5,000,000
4,000,000
3,000,000
2,000,000

Cash Flows From Operating

Activities

1,000,000

Cash Flows From Investing

Activities

2010
(1,000,000)
(2,000,000)
(3,000,000)
(4,000,000)

2011

2012

2013

2014

Cash Flows from Financing

Activities

Cash and cash equivalents at the end of the year

Cash flows from operating, investing

and financing activities

Cash Flows from Operating

Activities

Cash Flows from Investing Activities

Cash Flows from Financing

Activities

Free Cash Flow

Free Cash Flow = Cash flow from

operating
activities
Capital expenditures
Cash that a company generates
deducting capital expenditures
Can they finance its capital
expenditures it self??

John Keells Hotels Plc

Amaya Leisure Plc

Operating Cash flow / Sales

Ratio
Operating cash flow / Sales Ratio = (Operating Cash Flows /
Sales Revenue) x 100

Compares the operating cash flows a

company to its sales revenue
Ability of a company to generate cash from
its sales
Higher ratio is better
Good investment opportunities
Good debtors management

John Keells Hotels Plc

Amaya Leisure Plc

CONCLUSION

Risk Analysis
Short-term liquidity Risk
Operating Cash Flow to current liability ratio
Working Capital ratios
I.
Account Receivable Turn over
II.
Inventory turnover
III. Account Payable turnover
Cash Conversion Cycle
Revenue to Cash Ratio
Long term solvency Risk
Liabilities to Asset ratio
Liabilities to Share Holders Equity ratio
Long term Debt to Shareholder Equity Ratio
Long term debt to Long term Capital Ratio

CONCLUSION
Comparative Analysis
Income Statement/Balance
Sheet
Cash Flow Analysis

Operating Activities
Investing Activities
Financing Activities
Free Cash Flow
Operating/Sales ratio

THANK YOU !