A Comparative Financial Performance Analysis of Insurance and Hospitality Sector of Nepal

A COMPARATIVE FINANCIAL
PERFORMANCE ANALYSIS OF
INSURANCE AND HOSPITALITY SECTOR
OF NEPAL
PRESENTED BY :
GROUP 4 (KATMANDU UNIVERSITY SCHOOL OF MANAGEMENT)
BIJAY CHALISE (17306)
SUNNY DESHAR (17308)
DIPESH RAJ PANDEY (17321)
UTTAM RAI (17324)
TAJSHREE RANA (17326)
BIJAY TIMILSINA (17337)
YEAR - 2017

INTRODUCTION
• Crowne Plaza- Soaltee Hotel and Resorts
• Hyatt Regency
• MetLife Insurance Company
• Himalayan General Insurance Co. Ltd.

RATIO ANALYSIS
• Profitability ratio
• Net Profit Margin
• Assets turnover ratio
• Return on Assets
• Return on Equity

RATIO ANALYSIS
• Liquidity and solvency ratio
• Working Capital
• Current ratio
• Cash flow from operations to current liabilities
• Debt-equity ratio

RATIO ANALYSIS
• Shareholders’ Ratio
• Earning Per share
• Price/earning ratio
• Dividend Payout ratio
• Dividend yield ratio

OBJECTIVES OF THE STUDY
• To analyze the overall performance of insurance companies and
hotels.
• To determine the key financial ratios affecting the financial
health of a company
• To determine other relevant qualitative factors affecting a
company’s operations
• To make a comparative analysis of the companies taken for the
research purpose

ANALYSIS AND INTERPRETATION
2066/67 2067/68 2068/69 2069/70 2070/71 2071/72 2072/73
Himalayan General - - -54.73% 59.79% 59.74% 71.50% 60.81%
MetLife ALICO 11.70% 68.00% 65.31% 86.21% 69.73% - -
Profitability analysis
• Net profit margin
1st Quarter 2017 4th Quarter 2016 3rd Quarter 2016 2nd Quarter 2016 1st Quarter 2016 4th Quarter 2015
Hyatt Regency 28.06% 22.63% 11.91% 16.24% 17.50% 7.69%
Soaltee Hotel 14.46% 14.18% 10.72% 7.05% 6.57% 1.45%

• Profitability analysis
• Assets Turnover Ratio
2066/67 2067/68 2068/69 2069/70 2070/71 2071/72 2072/73
Himalayan
General
- - 14.14% 13.82% 13.49% 11.17% 14.73%
MetLife ALICO 0.77% 1.06% 0.53% 7.45% 1.25% - -
1st Quarter 2017 4th Quarter
2016
3rd Quarter
2016
2nd Quarter
2016
1st Quarter 2016 4th Quarter
2015
Hyatt Regency 3.31 5.09 12.79 2.64 4.01 6.33
Soaltee Hotel 1.72 2.73 6.55 1.67 2.33 3.70

• Return on Assets (ROA)
2066/67 2067/68 2068/69 2069/70 2070/71 2071/72 2072/73
Himalayan
General
- - -7.74% 6.74% 9.72% 7.99% 8.96%
MetLife ALICO 0.09% 0.72% 0.35% 6.42% 0.87% - -
1st Quarter 2017 4th Quarter 2016 3rd Quarter
2016
2nd Quarter
2016
1st Quarter 2016 4th Quarter 2015
Hyatt Regency 8.48% 4.44% 0.93% 6.14% 4.36% 1.22%
Soaltee Hotel 8.44% 5.20% 1.64% 4.25% 2.84% 1.46%

• Return on Equity (ROE)
1st Quarter
2017
4th Quarter
2016
3rd Quarter
2016
2nd Quarter
2016
1st Quarter
2016
4th Quarter
2015
Hyatt Regency 12.56% 6.73% 1.51% 10.30% 7.00% 1.99%
Soaltee Hotel 12.47% 7.90% 2.43% 6.49% 4.32% 2.23%
2066/67 2067/68 2068/69 2069/70 2070/71 2071/72 2072/73
Himalayan
General
- - -54.26% 71.89% 37.34% 52.96% 40.77%
MetLife
ALICO
10.85% 0.65% 0.37% 7.02% 0.94% - -

• Liquidity and Solvency Analysis
• Working Capital
2066/67 2067/68 2068/69 2069/70 2070/71 2071/72 2072/73
Himalayan
General
- - (62,453,138) 28,277,191 196,724,011 337,221,752 544,503,419
MetLife
ALICO
2,138,967,94
3
2,871,453,693 1,683,102,353 3,615,971,076 6,017,192,000 - -
Hyatt Regency 320137057 169443732 43067697 -8576694 -25977441 -151888714
Soaltee Hotel 388105000 309454000 293296000 276617000 235738000 191749000

• Current Ratio
Hyatt Regency 1.52 1.27 1.06 0.99 0.96 0.78
Soaltee Hotel 1.59 1.46 1.47 1.42 1.37 1.30
2066/67 2067/68 2068/69 2069/70 2070/71 2071/72 2072/73
Himalayan General - - 0.89 1.33 1.00 1.28 1.81
MetLife ALICO 5.53 8.35 4.35 5.28 9.09 - -

• Cash Flow from Operations to Current Liabilities
2066/67 2067/68 2068/69 2069/70 2070/71 2071/72 2072/73
Himalayan
General
- - 0.046 0.169 (0.047) (0.014) (0.125)
MetLife ALICO 0.24 3.35 2.05 1.52 1.82 - -

• Debt-to-Equity Ratio
1st Quarter
2017
4th Quarter
2016
3rd Quarter
2016
2nd Quarter
2016
1st Quarter
2016
4th Quarter 2015
Hyatt Regency 17.52% 18.47% 19.47% 19.63% 20.24% 20.88%
Soltee Hotel 0.50% 0.55% 0.58% 0.62% 0.66% 0.69%
2066/67 2067/68 2068/69 2069/70 2070/71 2071/72 2072/73
Himalayan General - - 3.42 3.29 1.56 2.07 0.96
MetLife ALICO 9.72 0.07 0.07 0.11 0.08 - -

• Shareholder’s Analysis
• Himalayan General Insurance
2068/69 2069/70 2070/71 2071/72 2072/73
EPS (54.26) 71.89 37.34 52.96 40.77
P/E Ratio (3.63) 2.53 15.80 7.14 33.85
DPR (0.0187) 0.0005 0.0055 0.0574 0.0007
DYR 0.0081 0.0002 0.0011 0.0144 0.0001

• Shareholder’s Analysis
Hyatt Regency
Earnings Per
Share
13.3 6.68 0.59 8.6 6.42 1.73
Price Earnings
Ratio
113.5 29.93 401 29.3 32.69 120.76
Soltee Hotel
Earnings Per
Share
3.26 1.96 0.6 1.45 1.25 0.63
Price Earnings
Ratio
109.79 159.94 764.82 244.09 275.4 517.85

CONCLUSION AND RECOMMENDATION
• Among the two Insurance Companies ,
• Himalayan General Insurance has better profitability ratio than
MetLife ALICO
• MetLife ALICO has better liquidity and solvency ratio than
Himalayan General Insurance
• MetLIfe ALICO has not issued public share till date
• Himalayan General Insurance has been able to increase the value
of its share in the market.

CONCLUSION AND RECOMMENDATION
• Among the two hospitality companies,
• Hyatt Regency has better Net Profit Margin and Return on Assets
than Soaltee Hotel
• The return on equity has been quite similar between the
companies
• Soaltee Hotel has been able to maintain better current ratio than
Hyatt Regency
• Hyatt Regency has better liquidity and solvency ratios apart from
current ratio
• Soaltee hotel has more earning per share than Hyatt Regency.

A Comparative Financial Performance Analysis of Insurance and Hospitality Sector of Nepal

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A Comparative Financial Performance Analysis of Insurance and Hospitality Sector of Nepal