Financial+analysis

=Financial analysis of Hong Kong Disneyland =

Historical comparison between 2010 and 2009
* All the monetary values are measured in millions
 * **Liquidity**
 * || **2010** || **2009**  || **Change**  ||
 * Current assets || $865 || $577  ||   ||
 * Current liabilities || $1336 || $1009  ||   ||
 * **Current ratio** || 0.65 || 0.57  || <span style="display: block; font-family: Arial,Helvetica,sans-serif; text-align: center;">+14%  ||
 * <span style="font-family: Arial,Helvetica,sans-serif;">Current ratio is still low but shows some improvement
 * <span style="font-family: Arial,Helvetica,sans-serif;">Do not have sufficient liquid funds
 * <span style="font-family: Arial,Helvetica,sans-serif;">May fail to meet its short-term obligations and have to liquidate some of the non-current assets


 * <span style="font-family: Arial,Helvetica,sans-serif;">**Leverage**
 * || <span style="display: block; font-family: Arial,Helvetica,sans-serif; text-align: center;">**2010** || <span style="display: block; font-family: Arial,Helvetica,sans-serif; text-align: center;">**2009**  || <span style="display: block; font-family: Arial,Helvetica,sans-serif; text-align: center;">**Change**  ||
 * <span style="font-family: Arial,Helvetica,sans-serif;">Total assets || <span style="display: block; font-family: Arial,Helvetica,sans-serif; text-align: center;">$14758 || <span style="display: block; font-family: Arial,Helvetica,sans-serif; text-align: center;">$14514  ||   ||
 * <span style="font-family: Arial,Helvetica,sans-serif;">Total liabilities || <span style="display: block; font-family: Arial,Helvetica,sans-serif; text-align: center;">$5008 || <span style="display: block; font-family: Arial,Helvetica,sans-serif; text-align: center;">$5072  ||   ||
 * <span style="font-family: Arial,Helvetica,sans-serif;">**Debt ratio** || <span style="display: block; font-family: Arial,Helvetica,sans-serif; text-align: center;">0.34 || <span style="display: block; font-family: Arial,Helvetica,sans-serif; text-align: center;">0.3  || <span style="display: block; font-family: Arial,Helvetica,sans-serif; text-align: center;">+13%  ||
 * <span style="font-family: Arial,Helvetica,sans-serif;">Debt ratio increases slightly but is still safely levered
 * <span style="font-family: Arial,Helvetica,sans-serif;">Most assets are financed through equity
 * <span style="font-family: Arial,Helvetica,sans-serif;">Able to repay long-term debts with its assets
 * <span style="font-family: Arial,Helvetica,sans-serif;">Possible to obtain further financing from banks or lenders as they are protected from loss in case of liquidation


 * <span style="font-family: Arial,Helvetica,sans-serif;">**Efficiency**
 * || <span style="display: block; font-family: Arial,Helvetica,sans-serif; text-align: center;">**2010** || <span style="display: block; font-family: Arial,Helvetica,sans-serif; text-align: center;">**2009**  || <span style="display: block; font-family: Arial,Helvetica,sans-serif; text-align: center;">**Change**  ||
 * <span style="font-family: Arial,Helvetica,sans-serif;">Revenues || <span style="display: block; font-family: Arial,Helvetica,sans-serif; text-align: center;">$3013 || <span style="display: block; font-family: Arial,Helvetica,sans-serif; text-align: center;">$2541  ||   ||
 * <span style="font-family: Arial,Helvetica,sans-serif;">Average total assets || <span style="display: block; font-family: Arial,Helvetica,sans-serif; text-align: center;">$14636 || <span style="display: block; font-family: Arial,Helvetica,sans-serif; text-align: center;">$14931.5  ||   ||
 * <span style="font-family: Arial,Helvetica,sans-serif;">**Asset turnover** || <span style="display: block; font-family: Arial,Helvetica,sans-serif; text-align: center;">0.21 || <span style="display: block; font-family: Arial,Helvetica,sans-serif; text-align: center;">0.17  || <span style="display: block; font-family: Arial,Helvetica,sans-serif; text-align: center;">+24%  ||
 * <span style="font-family: Arial,Helvetica,sans-serif;">Asset turnover is improved
 * <span style="font-family: Arial,Helvetica,sans-serif;">Able to use its recourses more productively for revenues generation

<span style="font-family: Arial,Helvetica,sans-serif;">after interest and tax || <span style="color: red; display: block; font-family: Arial,Helvetica,sans-serif; text-align: center;">($718) || <span style="color: red; display: block; font-family: Arial,Helvetica,sans-serif; text-align: center;">($1315)  ||   ||
 * <span style="font-family: Arial,Helvetica,sans-serif;">**Profitability**
 * || <span style="display: block; font-family: Arial,Helvetica,sans-serif; text-align: center;">**2010** || <span style="display: block; font-family: Arial,Helvetica,sans-serif; text-align: center;">**2009**  || <span style="display: block; font-family: Arial,Helvetica,sans-serif; text-align: center;">**Change**  ||
 * <span style="font-family: Arial,Helvetica,sans-serif;">Revenues || <span style="display: block; font-family: Arial,Helvetica,sans-serif; text-align: center;">$3013 || <span style="display: block; font-family: Arial,Helvetica,sans-serif; text-align: center;">$2541  ||   ||
 * <span style="font-family: Arial,Helvetica,sans-serif;">Net loss
 * <span style="font-family: Arial,Helvetica,sans-serif;">Shareholders’ equity || <span style="display: block; font-family: Arial,Helvetica,sans-serif; text-align: center;">$9750 || <span style="display: block; font-family: Arial,Helvetica,sans-serif; text-align: center;">$9442  ||   ||
 * <span style="font-family: Arial,Helvetica,sans-serif;">**Net profit margin** || <span style="color: red; display: block; font-family: Arial,Helvetica,sans-serif; text-align: center;">(24%) || <span style="color: red; display: block; font-family: Arial,Helvetica,sans-serif; text-align: center;">(52%)  || <span style="display: block; font-family: Arial,Helvetica,sans-serif; text-align: center;">+28%  ||
 * <span style="font-family: Arial,Helvetica,sans-serif;">**Return on equity** || <span style="color: red; display: block; font-family: Arial,Helvetica,sans-serif; text-align: center;">(7%) || <span style="color: red; display: block; font-family: Arial,Helvetica,sans-serif; text-align: center;">(14%)  || <span style="display: block; font-family: Arial,Helvetica,sans-serif; text-align: center;">+7%  ||
 * <span style="font-family: Arial,Helvetica,sans-serif;">Significant improvement in profitability but still poor
 * <span style="font-family: Arial,Helvetica,sans-serif;">It can control the costs and expenses to increase the net income
 * <span style="font-family: Arial,Helvetica,sans-serif;">Management is ineffective in providing returns on sales & investment
 * <span style="font-family: Arial,Helvetica,sans-serif;">Affect shareholders’ confidence on the company


 * <span style="font-family: Arial,Helvetica,sans-serif;">**Growth**
 * || <span style="display: block; font-family: Arial,Helvetica,sans-serif; text-align: center;">**2010** || <span style="display: block; font-family: Arial,Helvetica,sans-serif; text-align: center;">**2009**  || <span style="display: block; font-family: Arial,Helvetica,sans-serif; text-align: center;">**Change**  ||
 * <span style="font-family: Arial,Helvetica,sans-serif;">**Revenues** || <span style="display: block; font-family: Arial,Helvetica,sans-serif; text-align: center;">3013 || <span style="display: block; font-family: Arial,Helvetica,sans-serif; text-align: center;">$2541  || <span style="display: block; font-family: Arial,Helvetica,sans-serif; text-align: center;">+18%  ||
 * <span style="font-family: Arial,Helvetica,sans-serif;">**Net loss** || <span style="display: block; font-family: Arial,Helvetica,sans-serif; text-align: center;">($718) || <span style="display: block; font-family: Arial,Helvetica,sans-serif; text-align: center;">($1315)  || <span style="display: block; font-family: Arial,Helvetica,sans-serif; text-align: center;">+45%  ||
 * <span style="font-family: Arial,Helvetica,sans-serif;">The growth is quite obvious
 * <span style="font-family: Arial,Helvetica,sans-serif;">The revenues and net income are improved
 * <span style="font-family: Arial,Helvetica,sans-serif;">Able to achieve a better economic position

<span style="font-family: Arial,Helvetica,sans-serif;">Competitive Comparison Between Disneyland and Ocean Park
<span style="font-family: Arial,Helvetica,sans-serif;">**Current ratio** || <span style="display: block; font-family: Arial,Helvetica,sans-serif; text-align: center;">0.65 || <span style="display: block; font-family: Arial,Helvetica,sans-serif; text-align: center;">** 4.89 ** || <span style="font-family: Arial,Helvetica,sans-serif;">**Debt ratio** || <span style="display: block; font-family: Arial,Helvetica,sans-serif; text-align: center;">0.34 || <span style="color: black; display: block; font-family: Arial,Helvetica,sans-serif; text-align: center;">0.69 || <span style="font-family: Arial,Helvetica,sans-serif;">**Asset turnover** || <span style="display: block; font-family: Arial,Helvetica,sans-serif; text-align: center;">**0.21** || <span style="color: black; display: block; font-family: Arial,Helvetica,sans-serif; text-align: center;">0.15 || <span style="font-family: Arial,Helvetica,sans-serif;">**Net profit margin** <span style="font-family: Arial,Helvetica,sans-serif;">**Return on equity** || <span style="color: #ff0000; font-family: Arial,Helvetica,sans-serif;">(24%) <span style="color: red; display: block; font-family: Arial,Helvetica,sans-serif; text-align: center;">(7%)  || <span style="display: block; font-family: Arial,Helvetica,sans-serif; text-align: center;">** 7% ** <span style="display: block; font-family: Arial,Helvetica,sans-serif; text-align: center;">** 9% **  || <span style="font-family: Arial,Helvetica,sans-serif;">**Revenues** <span style="font-family: Arial,Helvetica,sans-serif;">**Net Income** || <span style="font-family: Arial,Helvetica,sans-serif;">**18%** <span style="display: block; font-family: Arial,Helvetica,sans-serif; text-align: center;">**45%**  || <span style="font-family: Arial,Helvetica,sans-serif;">10% <span style="color: red; display: block; font-family: Arial,Helvetica,sans-serif; text-align: center;">(4%)  ||
 * || <span style="display: block; font-family: Arial,Helvetica,sans-serif; text-align: center;">**Disneyland** || <span style="display: block; font-family: Arial,Helvetica,sans-serif; text-align: center;">**Ocean Park**  ||
 * * <span style="font-family: Arial,Helvetica,sans-serif;">**Liquidity**
 * * <span style="font-family: Arial,Helvetica,sans-serif;">**Leverage**
 * * <span style="font-family: Arial,Helvetica,sans-serif;">**Efficiency**
 * * <span style="font-family: Arial,Helvetica,sans-serif;">**Profitability**
 * * <span style="font-family: Arial,Helvetica,sans-serif;">**Growth**

<span style="font-family: Arial,Helvetica,sans-serif;">The current ratio of Disneyland is much lower than that of Ocean Park. It shows that the liquidity of Disneyland is poorer. The debt ratio of Disneyland is lower. It means that the debt financing of Ocean Park is more. The higher asset turnover of Disneyland represents better efficiency in resources utilization. The profit margins and return on equity of Disneyland are lower too. Ocean Park has a higher profitability. In term of growth, the increases in revenues and net income of Disneyland are much higher than those of Ocean Park.

<span style="font-family: Arial,Helvetica,sans-serif;">In conclusion, although Disneyland has bad liquidity, the lower leverage of Disneyland represents low interest burden and long-term liabilities. Disneyland can generate returns with resources more efficiently. Ocean Park has many current assets that are remain idle. The profitability of Disneyland is low now, but the higher growth rate indicates that it will be able to earn positive net income in the next few years.

<span style="font-family: Arial,Helvetica,sans-serif;">Suggestions

 * <span style="font-family: Arial,Helvetica,sans-serif;">Obtain further financing from long-term liabilities to increase current assets and strengthen its liquidity
 * <span style="font-family: Arial,Helvetica,sans-serif;">Keep controlling the costs while utilize its resources to generate revenues efficiently

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