Wynn Las Vegas Financial Analysis

Wynn Las Vegas Financial Analysis Las Vegas Operation Wynn Las Vegas is a luxury resort and casino situated in the Las Vegas region in Nevada. It lies in the North Eastern region of Las Vegas.  The project entails an analysis of the company’s financial position and a comparison of the same with other major companies. The analysis of the company’s finances is done on the basis of the major financial ratios. These financial ratios are divided into three major ratios; profitability ratios, leverage ratios and liquidity ratios (Palmer 2007). The competitors considered in this document include Aria, Bellagio, Venetian, and Palazzo. The paper analyzes the financial ratios of Wynn Resorts Ltd in comparison to the financial ratios of its competitors. The financial ratios considered in this paper include gross profit margin, net profit margin, return on assets, return of equity, liquidity ratio, quick ratio, leverage ratio, and debt ratios. Data relevant to the calculation of these ratios was tabulated for the three companies under consideration for the year 2013 financial results. Wynn Las Vegas    Aria    Bellagio    Venetian    Palazzo Gross Profit Margin    38.96%    28.21%    29.92%    32.21%    35.41% From the table, it can be established that Wynn Las Vegas has the highest Gross Profit Margin. This means that the resort has the highest efficiency of operation in comparison to the other four resorts. Wynn Las Vegas    Aria    Bellagio    Venetian    Palazzo Net Profit Margin    17.72%    22.65%    21.45%    16.96%    20.44% From the table, it can be established that Bellagio has the highest Net Profit Margin, and Wynn Lass Vegas has the least. This means Wynn Lass Vegas had the least efficiency, after all, the expenses were considered. Wynn Las Vegas    Aria    Bellagio    Venetian    Palazzo Return on Asset (ROA)    8.7%    0.11%    1.06%    0.02%    0.02% From the table above, Wynn Las Vegas has the largest return on Assets, which implies that the company’s assets have the greatest productivity. Wynn Las Vegas    Aria    Bellagio    Venetian    Palazzo Return on Equity (ROE)    -15.26%    -18.92%    -8.68%    0.51%    -7.85% The table above shows that Wynn Las Vegas has the least Return on Equity. This implies that the hotel and resort’s equity has the least earnings power compared to its competitors. Wynn Las Vegas    Aria    Bellagio    Venetian    Palazzo Liquidity Ratio    2.03    1.43    2.12    1.95    1.1 The table above shows that Bellagio has the highest current ratios, closely followed by Wynn Lass Vegas. The high value of liquidity ratio indicates that the company has greater ability of paying short-term debt than those companies with lower current ratios. Wynn Las Vegas    Aria    Bellagio    Venetian    Palazzo Quick Ratio    2.06    1.82    3.01    2.32    1.94 The Bellagio has the highest short-term liquidity of the five hotels and resorts. The Wynn Las Vegas is third compared to its competitors. This implies that the Bellagio is more capable of handling short-term debts than Wynn Las Vegas. Wynn Las Vegas    Aria    Bellagio    Venetian    Palazzo Leverage Ratio    0.98    1.26    0.25    0.98    0.8 From the table above, it can be established that both Wynn Lass Vegas and Venetian have the same Total Debt to Total Assets Ratio. Aria has the highest Total Debt to Total Assets Ratio. This means that Aria has the highest percentage of assets financed through borrowing. Wynn Las Vegas    Aria    Bellagio    Venetian    Palazzo Debt Ratio    3.28    3.91    5.21    1.81    4.19 The table above shows that the Wynn Las Vegas can be ranked fourth in terms of debt ratio. The Bellagio has the highest leverage for stockholders; investment compared to the other resorts. Macau Operation The major competitors of Wynn Las Vegas that are considered for this analysis are, Four Seasons hotel Macau, Mandarin Oriental Hotel Macau, and Crown Towers. The major financial ratios included for the analysis are; the gross profit margin, net profit margin, the debt ratio, the debt to equity ratio and the returns on assets ratio (ROA). Wynn Las Vegas    Crown Towers    Four Seasons Hotel Macau    Mandarin Oriental Hotel Macau Gross Profit Margin    38.96%    18.86%    46.89%    35.58% Four Seasons Hotel Macau has the highest efficiency of operations with Crown Towers having the least. Wynn Las Vegas    Crown Towers    Four Seasons Hotel Macau    Mandarin Oriental Hotel Macau Net Profit Margin    17.72%    21.19%    24.60%    21.8% Four Seasons hotel Macau has the highest efficiency after all expenses are considered with Wynn Las Vegas having the least. Wynn Las Vegas    Crown Towers    Four Seasons Hotel Macau    Mandarin Oriental Hotel Macau Return on Assets (ROA)    10.62%    9.98%    16.05%    13.4% Four Seasons Hotel Macau has the highest productivity of assets followed by my company then crown towers cones last Wynn Las Vegas    Crown Towers    Four Seasons Hotel Macau    Mandarin Oriental Hotel Macau Return on Equity (ROE)    -15.26%    16.46%    49.74%    61.70% Mandarin Oriental Hotel Macau has the highest earnings power of equity with Wynn Las Vegas having the least. Wynn Las Vegas    Crown Towers    Four Seasons Hotel Macau    Mandarin Oriental Hotel Macau Liquidity Ratio    2.03    0.8    1.91    2.2 Mandarin Oriental Hotel Macau has the highest ability to pay short-run debts. Wynn Las Vegas    Crown Towers    Four Seasons Hotel Macau    Mandarin Oriental Hotel Macau Quick Ratio    2.06    0.78    1.9    2.16 Mandarin Oriental Hotel Macau has the highest short-term liquidity Wynn Las Vegas    Crown Towers    Four Seasons Hotel Macau    Mandarin Oriental Hotel Macau Leverage Ratio    0.98    0.65    2.10    2.51 Mandarin Oriental Hotel Macau has the least extent to which shareholders investments are leveraged. Wynn Las Vegas    Crown Towers    Four Seasons Hotel Macau    Mandarin Oriental Hotel Macau Debt Ratio    3.28    0.39    0.68    2.21 On a general comparison basis, Wynn Las Vegas has higher profitability ratios compared to its competitors.  The interpretation is that Wynn Las Vegas has a higher potential to settle most of its long-term and short-term dues. The company is therefore better placed than the rest of the seven competitors in the aspects of profitability and liquidity. References Crown Resort Annual Report (2013) Las Vegas Sands Annual Report (2013) Mandarin Oriental International Limited Annual Report (2013) MGM International Annual Report (2013) Sands China Annual Report (2013) Palmer, J. (2007). Financial ratio analysis. New York, N.Y.: American Institute of Certified Public Accountants. Wynn Las Vegas Annual Report (2013) PLACE THIS ORDER OR A SIMILAR ORDER WITH US TODAY AND GET AN AMAZING DISCOUNT :)