Be Our Guest, Inc.

Be Our Guest’s balance sheet shows good signs of liquidity. Current Ratios for the past four years have remained above 1 proving that the company can handle its current liabilities. The current ratios are not extremely high (19941.27, 1995- 2.17, 1996- 1.15 and 1997- 1.16), but they can cover the current liabilities. It is important to note that the company is operating on a thin line because the current assets are barely covering the current liabilities. This is particularly unpleasant because we are dealing with a company operating in a seasonal business. It is a concern that the current ratio slightly eroded after 1995, and this is primarily due to Be Our Guest converting the bank line into long term debt in

This company, a retail clothing store with three suburban locations in Atlanta, Georgia, is incorporated, with each of the three Boudoir sisters owning one-third of the outstanding stock. The company is profitable, but rapid growth has put it under severe financial strain. The real estate is all under mortgage to an insurance company, the inventory is being used under a blanket chattel mortgage to secure a bank line of credit, and the accounts receivable are all being factored. With total assets of $7 million, the company now needs an additional $450,000 to finance a building and fixtures for a new outlet.

Why can't a profitable firm like Hampton repay its loan on time and why does it need

they must pay interest payments or risk bankrupting of the firm. It also helps reduce

The Marriott Corporation (MC), had seen a long, successful reign in the hospitality industry until the late 1980s. An economic downturn and the 1990 real estate crash resulted in MC owning newly developed hotel properties with no potential buyers in sight and a mound of debt. During the late 1980s, MC had promised in their annual reports to sell off some of their hotel properties and reduce their burden of debt. However, the company made little progress toward fulfilling that promise. During 1992, MC realized that financial results were only slightly up from the previous year and their ability to raise funds in the capital market was severely limited. MC was left with little choice, as they had to

Jason Terwiliger, a new member of the finance committee at the Windshore Country Club, recently found some problems with the financing of the F&B outlets. His upscale restaurant in the city is extremely successful, and he hopes to bring some helpful ideas to the Windshore Country Club’s F&B operations on the outskirts of the city. One main concern Jason has is all of the differences in the 4 F&B outlets and that they all come out of the same kitchen. He says that the club’s food cost is at 42% while his restaurant is at 28%, which is a huge difference. Steve should respond to this concern by telling Jason that although his restaurant only has one outlet for his kitchen, most clubs have many outlets only run from one kitchen, and while he can’t change that directly, hopefully other solutions will

Why can't a profitable firm like Hampton repay its loan on time and why does it need

Aside from the two aforementioned proposals the company can raise its leverage in other ways. By conducting DuPont analysis and understanding operating leverage we see that purchasing fixed assets and decreasing stockholder’s equity will raise the equity multiplier and the firm’s operating leverage. In this instance we recommend against this approach as the firm already has a large amount of excess cash above what they require to fund new positive NPV projects and purchase new assets. Investors would rather see their capital returned to them in the form of share repurchases and dividends as it is evident by the company’s cash stockpile that they can

Party Kingdom Inc. is a corporation founded in 2013 that deals in the business-to-consumer sector with rental of amusement devices (inflatables, carnival food, interactive games, etc.) for birthday parties, corporate events or just about any other public or private event. The Party Kingdom is registered as a federal corporation in Canada under the Canada Business Corporations Act (https://www.ic.gc.ca/app/scr/cc/CorporationsCanada/fdrlCrpDtls.html?corpId=9570519&V_TOKEN=1478716578451&crpNm=Party%20Kingdom%20Inc&crpNmbr=&bsNmbr=). They are a relatively small company, with only two full time employees and two part-time employees. Even though they have a small workforce, they should be under estimated. They boast a high profile of clients, that include; Nike, McDonald’s, Bell, The Keg and Walmart. Their expansion over the years suggest that even though they are quite small, that they have been managing to expand and grow their network. The company does face a challenging and competitive environment that faces high competition, seasonality and strict regulations. The company must continuingly innovate its services to maintain its share of the marketplace. The Party Kingdom prides themselves on offering the best customer service to their clients and taking the extra step to ensure their clients are satisfied with their order. The Party Kingdoms main source of revenue come from repeat business of satisfied customers and from new customers

The hotel chain, Astor Lodge and Suites, Inc., operates 250 properties in 10 western and Rocky Mountain states. The company’s customer base primarily comprises business travelers. In addition, the locations of the properties surround airports, large regional shopping centers, and major highways close to suburban industrial sites as well as office complexes. Projections of 2005 fiscal year forecast a fifth consecutive year of a gross loss for the firm. The estimates include an anticipated $422.6 million in company lodging revenues but a net loss of $15.7 million for 2005. As a result, Joseph James, president and CEO of Astor Lodge and Suites, Inc., initiated a challenging goal for executive management to devise a strategy achieving net profits in two years and sustaining positive growth in the future.

Be Our Guest is a growing firm specializing in providing high-end equipment and services to catering firms. The company is considering its financial needs and appropriate capital structure to ensure available funding for growth and flexibility as well as to meet the day-to-day needs of its highly seasonal business. This paper attempts to analyze the key success factors of the firm and assess the appropriate funding levels from both the company?s perspective as well as that of the bank.

The company lost money almost every year since its leveraged buyout by Coniston Partners in 1989. The income generated was not sufficient to service the interest expenses of the company which stood at $2.62B in 1996. From Exhibit 1, we can say that interest coverage ratio computed as EBIT / Interest Expense was 1.31 in 1989 and has been decreasing over years and currently stands at 0.59. This raises a question of how the company can meet its interest payments without raising cash or selling assets.

In January 1980, the management of the Marriott Corporation found itself in an interesting dilemma: not only did the corporation have considerable excess debt capacity, but projections of future operations and cash flows indicated that this capacity was on the rise. For Marriott, excess debt capacity was viewed as comparable to unused plant capacity because the existing equity base could support additional productive assets. Management was therefore faced with two problems. First, it needed to determine the amount of funds that would be available if Marriott's full debt capacity were utilized. Second, management needed to decide whether to invest excess funds in new or existing businesses, or to return them to the companies shareholders

The company currently faces serious financial challenges. It was struggling with declining sales and increasing costs. Since 2004, revenues had fallen by more than 40% while costs especially for employees health insurance, maintenance, and utilities climbed. Credits and loans had been borrowed to

targeted those people who would recognize and appreciate quality lodging and not those who were seeking “cheap sleep”.  Inviting potential guests or individuals who might influence visitor hotel selection to launch parties, swim parties, cocktail parties and other planned events.  Targeting supportive hospitality businesses.  Packages that supported local businesses were developed.