Second part (c.) and the third part ( d. and e.

)
c. Financials ratios
Year ROA ROE Debt to equity
2005 9.25 19.43 1.10
2006 1.44 0.51 1.84
2007 2.33 0.67 2.47
2008 16.85 5.34 2.15
2009 -19.30 -4.28 3.51
2010 1.04 0.24 3.20
2011 1.28 0.32 3.00
2012 -9.04 -1.96 3.61
2013 -13.52 -2.67 4.07
2014 17.55 5.93 1.96
2015 18.33 7.91 1.32
2016 29.04 15.34 0.89
2017 31.64 23.21 0.36
2018 23.7 21.07 0.13
2019 27.25 25.42 0.07
2021 256.03 25.24 0.01
2022 4.62 4.64 -0.004

2005
Castelul Maria's ROE for 2005 is 19.43%, indicating that the company generated a return of
19.43% on its shareholders' equity in that year.
The ROA for 2005 is 9.25%, suggesting that the company was able to generate a profit of 9.25%
from its total assets.
The debt-to-equity ratio of 1.10 in 2005 indicates that the company has a higher level of
liabilities than shareholders' equity. However, it's important to note that a ratio below 2 is
generally considered acceptable for most industries.
2006
Return on Equity (ROE): In 2006, Castelul Maria's ROE is a low 1.44%. This indicates that the
company generated a very small profit relative to the shareholders' investment in the company.
Return on Assets (ROA): The ROA is also low at 0.51%, signifying that the company's efficiency
in generating profits from its assets was minimal in 2006.
Debt-to-Equity Ratio: The debt-to-equity ratio of 1.84 suggests that Castelul Maria has a higher
level of liabilities (debt) compared to its shareholders' equity. This could be a cause for concern
regarding the company's financial stability.
2007
Return on Equity (ROE): Castelul Maria's ROE for 2007 is 2.33%. This remains a relatively low
profitability ratio, indicating a small return on investment for shareholders compared to the
previous year (2006).
Return on Assets (ROA): The ROA also shows a slight improvement at 0.67% compared to
2006. However, it suggests that the company is still not generating a significant amount of profit
from its total assets.
Debt-to-Equity Ratio: The debt-to-equity ratio remains high at 2.47 in 2007. This indicates that
Castelul Maria still has a larger amount of liabilities compared to its shareholders' equity,
potentially raising concerns about its financial solvency.
2008
Return on Equity (ROE): Castelul Maria's ROE for 2008 shows a significant improvement to
16.85%. This indicates a much higher return on investment for shareholders compared to
previous years.
Return on Assets (ROA): The ROA also increased to 5.34% in 2008, suggesting a better use of
the company's assets to generate profits.
Debt-to-Equity Ratio: The debt-to-equity ratio remains high at 2.15 in 2008. While it's lower
compared to previous years, it still indicates that Castelul Maria has more liabilities than
shareholders' equity.
2009
Negative Return: In 2009, Castelul Maria experienced a net loss, resulting in a negative ROE of -
19.30%. This indicates that the company incurred a loss for every euro invested by shareholders.
Negative Return: Similar to ROE, the ROA is negative at -4.28%, signifying that the company’s
asset generated a loss in 2009.
High Leverage: The debt-to-equity ratio remains high at 3.51. This indicates that Castelul Maria
has a significantly larger amount of liabilities compared to its shareholders' equity, potentially
raising concerns about its ability to repay its debts.
A negative ROE and ROA in 2009 suggest that Castelul Maria was operating at a loss. The high
debt-to-equity ratio further indicates potential financial strain.
2010
Low Profitability: Castelul Maria's ROE for 2010 is a low 1.04%. This indicates that the
company generated a very small profit relative to the shareholders' investment.
Low Efficiency: The ROA is also low at 0.24%, signifying that the company's efficiency in
generating profits from its assets was minimal in 2010
High Leverage: The debt-to-equity ratio remains high at 3.20. This suggests that Castelul Maria
still has a considerable amount of liabilities compared to its shareholders' equity, potentially
indicating a risk of financial difficulties.
The financial ratios for 2010 suggest that Castelul Maria continued to experience challenges with
profitability and asset utilization. The low ROE and ROA indicate minimal return on investment
and asset efficiency. Additionally, the high debt-to-equity ratio suggests a significant reliance on
debt financing, which could be a concern if the company struggles to generate sufficient cash
flow to service its debts.
2011
Similar to 2010, the financial ratios for 2011 suggest Castelul Maria is still grappling with
profitability and asset utilization challenges. The low ROE and ROA indicate minimal return on
investment and asset efficiency. The high debt-to-equity ratio remains a concern, suggesting a
potential risk of financial difficulties if the company struggles to generate enough cash flow to
cover its debts.
Low Profitability: While slightly higher than 2010, Castelul Maria's ROE for 2011 remains low
at 1.28%. This indicates that the company is still generating a small profit relative to
shareholders' investment.
Low Efficiency: The ROA is also low at 0.32%, suggesting that the company's efficiency in
generating profits from its assets was minimal in 2011.
High Leverage: The debt-to-equity ratio remains high at 3.00. This indicates that Castelul Maria
still has a significant amount of liabilities compared to its shareholders' equity.
2012
Negative Return: In 2012, Castelul Maria experienced a net loss, resulting in a negative ROE of -
9.04%. This indicates that the company incurred a loss for every euro invested by shareholders.
Negative Return: Similar to ROE, the ROA is negative at -1.96%, signifying that the company’s
asset generated a loss in 2012.
High Leverage: The debt-to-equity ratio remains high at 3.61. This indicates that Castelul Maria
has a significantly larger amount of liabilities compared to its shareholders' equity, potentially
raising concerns about its ability to repay its debts.
The financial ratios for 2012 paint a concerning picture. The negative ROE and ROA indicate
that Castelul Maria was operating at a loss, meaning the company's expenses were greater than
its income. The high debt-to-equity ratio further suggests a potential financial strain, as the
company has a significant amount of debt to finance its operations.
2013
Negative Return: In 2013, Castelul Maria experienced a net loss, resulting in a negative ROE of -
13.52%. This indicates that the company incurred a loss for every euro invested by shareholders.
Negative Return: Similar to ROE, the ROA is negative at -2.67%, signifying that the company’s
asset generated a loss in 2013.
High Leverage: The debt-to-equity ratio remains high at 4.07. This indicates that Castelul Maria
has a significantly larger amount of liabilities compared to its shareholders' equity. A ratio above
2 is generally considered a cause for concern, and 4.07 suggests a very high reliance on debt
financing.
The financial ratios for 2013 reveal negative profitability and continued high leverage. The
negative ROE and ROA indicate that Castelul Maria was operating at a loss, and the company's
assets were not generating sufficient profits. The high debt-to-equity ratio suggests a potential
financial risk, as the company has a substantial amount of debt to service.
2014
Improved Profitability: In 2014, Castelul Maria's ROE shows a significant improvement to
17.55%. This indicates a positive return on investment for shareholders, compared to the
negative ROE in previous years.
Increased Efficiency: The ROA also increased to 5.93% in 2014, suggesting a better use of the
company's assets to generate profits compared to prior years.
Improved Leverage: The debt-to-equity ratio decreased to 1.96 in 2014. While still above 1, this
is a considerable improvement compared to previous years and indicates a lower reliance on debt
financing relative to shareholders' equity.
The financial ratios for 2014 show positive signs of improvement for Castelul Maria. The ROE
turned positive, indicating a return on investment for shareholders. The ROA also increased,
suggesting better asset utilization for generating profits. The debt-to-equity ratio, although still
above 1, shows a significant decrease, signifying a potentially healthier financial structure with
less dependence on debt financing.
2015
Profitable: In 2015, Castelul Maria's ROE is 18.33%, indicating a positive and relatively high
return on investment for shareholders.
Efficient Asset Use: The ROA is 7.91%, suggesting that the company is efficiently using its
assets to generate profits.
Improved Leverage: The debt-to-equity ratio has further improved to 1.32 in 2015. This is a
significant improvement compared to previous years and indicates a more balanced capital
structure with a lower reliance on debt financing compared to shareholders' equity.
The financial ratios for 2015 paint a positive picture for Castelul Maria. The ROE remains
positive and relatively high, indicating good profitability for the year. The ROA suggests
efficient asset utilization in generating profits. The continued decrease in the debt-to-equity ratio
signifies a potentially healthier financial structure with a more balanced use of debt and equity
financing.
2016
High Profitability: In 2016, Castelul Maria's ROE is 29.04%, indicating a very strong return on
investment for shareholders. This is the highest ROE among the years provided.
Efficient Asset Use: The ROA is 15.34%, suggesting that the company is efficiently using its
assets to generate profits. This is also the highest ROA among the years provided.
Improved Leverage: The debt-to-equity ratio has further improved to 0.89 in 2016. This is a
significant improvement compared to previous years and indicates a strong financial structure
with a much lower reliance on debt financing compared to shareholders' equity.
The financial ratios for 2016 continue the positive trend observed in 2015. Castelul Maria's ROE
reached its highest point among the provided years, indicating exceptional profitability for
shareholders. The ROA also suggests continued efficiency in generating profits from assets. The
substantial decrease in the debt-to-equity ratio signifies a robust financial structure with a more
prominent reliance on equity financing.
2017
High Profitability: In 2017, Castelul Maria's ROE remained high at 31.64%, indicating a strong
return on investment for shareholders. This is the second-highest ROE among the years analyzed.
Efficient Asset Use: The ROA is 23.21%, suggesting the company is efficiently generating
profits from its assets. This is the second-highest ROA among the years provided.
Strong Financial Structure: The debt-to-equity ratio is at a favorable 0.36 in 2017. This indicates
a strong financial structure with significantly more equity than debt to finance operations.
Continuing the positive trend observed in prior years, Castelul Maria's financial ratios for 2017
remain strong. The ROE indicates high profitability, while the ROA suggests efficient asset
utilization for generating profits. The low debt-to-equity ratio signifies a financially stable
company with a minimal dependence on debt financing.
2018
Profitable: In 2018, Castelul Maria's ROE is 23.71%, indicating a good return on investment for
shareholders.
Efficient Asset Use: The ROA is 21.07%, suggesting that the company is efficiently using its
assets to generate profits.
Very Strong Financial Structure: The debt-to-equity ratio is at a very favorable 0.13 in 2018. This
indicates a very strong financial structure with a significantly lower reliance on debt financing
compared to shareholders' equity.
Castelul Maria's financial ratios for 2018 paint a positive picture. The ROE remains above 20%,
indicating good profitability for shareholders. The ROA suggests the company continues to
effectively utilize its assets to generate profits. The remarkably low debt-to-equity ratio signifies
a very strong financial structure with minimal debt and a high dependence on equity financing.
2019
Profitable: In 2019, Castelul Maria's ROE remained positive at 27.25%, indicating a good return
on investment for shareholders.
Efficient Asset Use: The ROA is 25.42%, suggesting the company is efficiently generating
profits from its assets.
Very Strong Financial Structure: The debt-to-equity ratio is at a very favorable 0.07 in 2019. This
indicates a very strong financial structure with minimal debt and a heavy reliance on equity
financing.
Maintaining the positive trend observed in prior years, Castelul Maria's financial ratios for 2019
remain strong. The ROE above 25% suggests good profitability, while the ROA indicates
efficient asset utilization. The exceptionally low debt-to-equity ratio signifies a very strong
financial structure with a minimal dependence on debt financing.
2021
Very High ROE: Castelul Maria's ROE for 2021 is exceptionally high at 256.03%. This could be
due to a significant increase in net profit or a decrease in equity. It's important to analyze the
reasons behind such a high ROE.
Moderate ROA: The ROA is 25.24%, indicating a moderate ability to generate profit from the
company's assets. However, this ratio should be interpreted in conjunction with the very high
ROE.
Very Low Leverage: The debt-to-equity ratio is exceptionally low at 0.01. This suggests that
Castelul Maria has very little debt compared to its equity, which can be a sign of financial
strength. However, it's advisable to investigate if the company is underutilizing debt financing
for potential growth opportunities.
The financial ratios for 2021 present a mixed picture. The extraordinarily high ROE can be
caused by factors like a significant one-time gain or a substantial reduction in equity. A more in-
depth analysis is needed to understand the reasons behind this high ratio. The ROA suggests a
moderate ability to generate profits from assets. The very low debt-to-equity ratio indicates a
strong financial position with minimal reliance on debt financing.
2022
Low Profitability: Castelul Maria's ROE in 2022 is a low 4.62%, indicating a minimal return on
investment for shareholders.
Low Efficiency: The ROA is also low at 4.64%, suggesting that the company's assets generated a
small profit relative to their overall value in 2022.
Very Low Leverage (Negative): The debt-to-equity ratio is negative at -0.004. This can be
interpreted in two ways:
*Castelul Maria might have slightly more equity than total assets, which is uncommon.
* It's more likely that the negative value is due to rounding and represents a very small debt
balance compared to equity. In this case, it indicates minimal reliance on debt financing.
The financial ratios for 2022 suggest Castelul Maria experienced low profitability and asset
utilization. The low ROE indicates a small return on investment for shareholders, while the low
ROA signifies that the company's assets are not generating significant profits. The negative debt-
to-equity ratio, while unusual, likely indicates minimal reliance on debt financing.
d. Strengths and Weaknesses
Strengths of Castelul Maria
1. Unique Selling Proposition
Castelul Maria offers a unique experience by combining accommodation inn a historic castle
setting with various activities and they also created a variety of personalized packages.
2. Variety of rooms
They cater to different budgets and needs with their room options. They offer 3 types of rooms
Superior Suite, Suite and Double Room-Attic and create the price based on different budget
options.
3. Range offers.
They have a lot of different occasions throughout the year including holidays, celebrations, team
building, romantic gateways and even create offers/opportunities for the solo travers.
4. Personalized packages
They are differentiating themselves by catering to individual needs and preferences by offering
the option to customize your experience by creating your own package.
5. Positives reviews by leveling up in the classification ranking.
They are classified as a 4-star hotel, which is a very good classification that indicates they have
high end services.
Weaknesses of Castel Maria
1. Limited information
Their site doesn’t mention any amenities like Wi-Fi or parking options.
2. Seasonality
Some offers might be seasonal (holidays and anniversaries) and this could potentially affecting
year-round occupancy.
3. Unknown Location Attractiveness
Their website doesn’t mention any surrounding area’s attractions or accessibility, which could be
a deciding factor for some guests.
e. Identification of a need of financial
Based at the economic ratios calculated for Castelul Maria from 2013 to 2022, the want for
financing seems to be minimum, in current years (2018-2022). Here`s a breakdown of the signs:
Strong Profitability (2015-2019): ROE remained above 20% for numerous years, indicating
precise returns on funding for shareholders, suggesting the corporation become producing
enough income internally to finance its operations.
Efficient Asset Use (2015-2019): The ROA continuously above 15% implies the corporation
becomes successfully the usage of its belongings to generate income, probably lowering the want
for outside financing.
Very Strong Financial Structure (2016-2022): The debt-to-fairness ratio gradually reduced at
some point of the year, accomplishing particularly low tiers through 2022 (bad because of
rounding or minimum debt). This suggests minimum reliance on debt financing and a sturdy
economic function with a excessive dependence on fairness.
However, there is probably conditions where in financing can be useful regardless of a sturdy
economic function:
Growth Opportunities: Even with minimum cutting-edge debt, Castelul Maria would possibly
remember strategic financing to put money into growth plans, renovations, or new ventures. This
may contain taking up potential debt to gasoline boom whilst nonetheless preserving a
wholesome economic structure.
Favorable Interest Rates: If Castelul Maria encounters traditionally low-hobby rates, taking up
debt can be a strategic move. The ability to go back on funding from funded tasks would
possibly outweigh the hobby rate at the loan.
Therefore, the selection to are trying to find financing for Castelul Maria might depend upon
particular instances and destiny plans. Here are a few elements to remember while making this
choice:
Availability of Internal Funds: If the corporation has enough coins to go with the drift and
retained profits to fund its operations and boom objectives, outside financing may not be
necessary.
Risk Tolerance: Taking on debt will increase economic chances. Castelul Maria might want to
evaluate its chance tolerance and weigh the ability advantages in opposition to the extra debt
burden.
Return on Investment: The motive of the financing ought to have a clean and measurable go back
on funding that justifies the extra debt or hobby rate.
In conclusion, whilst Castelul Maria's historic economic ratios advise minimum want for
financing primarily based totally on profitability, asset use, and occasional debt tiers, strategic
financing can be an alternative for pursuing boom possibilities or capitalizing on favorable
hobby rates. The selection ought to be made primarily based totally on a cautious evaluation of
inner price range availability, chance tolerance, and the ability go back on funding from the
deliberate use of price range.