- The debt-to-equity ratio of 1.27 is relatively high when compared with the industry average, suggesting a need for better debt level management. To add to this, HOT has a quick ratio of 0.64, this demonstrates the lack of ability of the company to cover short-term liquidity needs.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed against the S&P 500 and did not exceed that of the Hotels, Restaurants & Leisure industry. The net income has decreased by 6.7% when compared to the same quarter one year ago, dropping from $30.00 million to $28.00 million.
- STARWOOD HOTELS&RESORTS WRLD's earnings per share declined by 6.3% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, STARWOOD HOTELS&RESORTS WRLD turned its bottom line around by earning $1.63 versus -$0.01 in the prior year. This year, the market expects an improvement in earnings ($1.69 versus $1.63).
- The revenue growth came in higher than the industry average of 2.3%. Since the same quarter one year prior, revenues slightly increased by 9.1%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
Tuesday, May 3, 2011
Posted by Marian at 5/03/2011 04:04:00 PM