Equity Research Report on Whitbread plc Essay Example | Topics and Well Written Essays - 2500 words

Equity Research Report on Whitbread plc - Essay Example The ratio analysis highlights the fact that the liquidity position of Compass Group Plc is better than that of Whitbread Plc. However, it is deduced that the profitability condition of Whitbread Plc is better than the former. From the ratio analysis and equity valuation method, it can be concluded that Whitbread Plc is a profitable company for the investors since it has increased its net income over the four years period from 2010-2013. It is recommended that Whitbread Plc should increase its asset base by improve the cash and equivalent by decreasing its operating expense. The increase in asset base will assist the company to become one of the strongest players in the industry. Whitbread Plc  is a  coffee shop,  multinational  hotel and restaurant company, which are headquartered in  Dunstable, United Kingdom (UK). It is regarded as the largest division in  Premier Inn. Premier is known to be the largest hotel brand in UK, which encompasses about 650 hotels comprising over 50,000 rooms (Whitbread Plc., 2011). It is as the leading hospitality company in UK. The company employs around 43,000 individuals who devote their hard work for its success (Whitbread Plc., 2011). They are motivated to provide their best services to customers every day. The number of customers visiting their coffee shop, hotels and restaurants is 22 million every month (Whitbread Plc., 2011). The financial statement of Whitbread Plc highlights transactions that have taken place throughout the year. It not only depicts profit or loss of company, but also gives opinion to investors about condition of the company financials. The framework for financial reporting that is applied during preparation of financial statement is International Financial Reporting Standard (IFRS), which is adopted by the European Union. The report is prepared for management of the company and also for investors. The managers have given their views regarding performance of the