Analysis On Mandalay Resort Group Available

15 July 2002

According to Aaron Freeman, President of IFAS, "With the globalization of markets, greater foreign competition, and the reduction of barriers to entry, it becomes all the more important to benchmark a company's financial indicators on a worldwide basis. World stock markets have recently witnessed a return to fundamental financial analysis. " The goal of the reports is to assist consultants, financial managers, strategic planners, and corporate officers in gauging certain indicators of Mandalay Resort Group's financial and human resource structure.

Drawing on the expertise of Professor Philip M. Parker of INSEAD (Fontainbleau, France and Singapore), IFAS has benchmarked Mandalay Resort Group against competing firms in the Hotels and Motels industry worldwide--going beyond traditional methods of company benchmarking. The results are two specialized reports: (1) global financial benchmarks using common-size statement ratios (vertical analysis), and (2) labor productivity and utilization measures collected across borders.

Coverage

Two reports, financial ratios and labor productivity ratios, are available for Mandalay Resort Group. Each report reveals productivity and industry ranks for Mandalay Resort Group in the Hotels and Motels industry. Reports for the following and many other Hotels and Motels companies are available now:

Arlington Hospitality Inc., Boca Resorts Inc., Boyd Gaming Corp., Candelwood Hotel Co. Inc., Choice Hotels International Inc., Choice Hotels Scandinavia Asa, Crestline Capital Corp., Extended Stay America Inc., Four Seasons Hotels Inc., Fujita Kanko Inc., Harrah's Entertainment Inc., Hilton Hotels Corp., Hotel New Hankyu Co. LTD., Isle Of Capri Casino Inc., Janus Hotels and Resorts Inc., Mandarin Oriental International LTD., Marcus Corp., Marriott International Inc., Meristar Hotels & Resorts Inc., Monarch Casino & Resort Inc., Park Place Entertainment Corp., Prime Hospitality Corp., Promociones Eurobuilding S.A., Rica Hotels AS, Sonesta International Hotels Corp., Starwood Hotels & Resorts Worldwide Inc., Station Casinos Inc., Suburban Lodges of America Inc., Vail Resorts Inc., and WestCoast Hospitality Corp.

The vertical analysis deals with questions like: How has Mandalay Resort Group's asset structure varied compared to global benchmarks for the Hotels and Motels industry? Does it generally hold more cash and other short-term assets, or does it tend to concentrate its assets in physical plant and equipment? On the liability side, does Mandalay Resort Group typically have a higher percent of payables compared to the benchmarks, or does it hold a higher concentration of long-term debt? Does Mandalay Resort Group have a relatively higher cost of goods sold, operating costs, or income taxes compared to global benchmarks? Have Mandalay Resort Group's returns on equity been higher or its profit margins greater?

While the labor productivity analysis answers the following: What has been the ratio of short-term and long-term assets to employee? What are typical capital-labor ratios? What are the average sales and net profits per employee compared to global benchmarks?

Freeman notes, "We are intrigued by the wide variations in basic financial and productivity measures between Mandalay Resort Group and other Hotels and Motels companies. The Gross Profit Margin, for example, varied from 92.77 to 2.30. We see this type of variation in the 100 or so ratios that we estimate."

Methodology: Uncovering Gaps

Most vertical analyses merely focus on benchmarking against domestic ratios, often published by government agencies or commercial sources. In contrast, IFAS calculates thousands of industry norms by looking at firms at the global level, pooling statistics on tens of thousands of companies across over 40 countries, and applying a seven-stage methodology: (1) identification of industry classifications, (2) firm-level data collection and aggregation, (3) standardization of raw statistics, (4) filtering outliers, (5) calculation of global norms, (6) projection of deviations and gaps, and (7) projection of ranks and percentiles. For each part of the financial statement, the larger structural differences and gaps between Mandalay Resort Group. and the global benchmarks are provided with summary tables of ranks and percentiles.

Previously available only through booksellers such as Hoovers, Amazon.com, and Barnes and Noble, two studies are now available direct from the publisher at a 50% discount off the cover price. This special offer includes Vertical Analysis and International Financial Benchmarks and Labor Productivity, Utilization and Global Benchmarks at $99.95 each. Contact Ula Tuszewicka for more information.

IFAS assists managers with global benchmarking, gap analysis, and productivity studies. Clients can create their own benchmarks by choosing their competitors from among over 20,000 companies.