Mathieu Peruyero
New member
Hello everyone,
I have to do a financial analysis of Intercontinental.
I was surprised to find that this big company has a negative NWC (current ratio of 0.5). It has been the case for several years but it does not seem to trouble the investors. And its cash coverage is pretty good (7.2).
I really don't get it... Does anybody know how to explain this troubling fact?
http://finance.yahoo.com/q/ks?s=IHG+Key+Statistics
Thank you for your answers.
Mathieu
(Intercontinental Hotels Group (NYSE: IHG) is the largest hotel company by number of rooms in the world. The largest part of IHG's business today is the 3,419 hotels it franchises. It also manages 546 hotels and owns 18 hotels.)
I have to do a financial analysis of Intercontinental.
I was surprised to find that this big company has a negative NWC (current ratio of 0.5). It has been the case for several years but it does not seem to trouble the investors. And its cash coverage is pretty good (7.2).
I really don't get it... Does anybody know how to explain this troubling fact?
http://finance.yahoo.com/q/ks?s=IHG+Key+Statistics
Thank you for your answers.
Mathieu
(Intercontinental Hotels Group (NYSE: IHG) is the largest hotel company by number of rooms in the world. The largest part of IHG's business today is the 3,419 hotels it franchises. It also manages 546 hotels and owns 18 hotels.)