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The interpreting of the financial statements helps the various stakeholders in obtaining the information about the company for the purpose of making decision in relation to company affair. The financial statement on their own are of limited use and needs to interpret to draw valid conclusion over it. For the purpose of interpreting the financial statement, comparison needs to be made from the prior year, future condition and the business operating at similar level (Carraherand Van Auken, 2013). For the purpose of interpreting the financial statements comparison needs to be made between sales amount and through the balance of the assets and liabilities to make decision over the company affair. The interpretation of the financial statement involves conducting the calculating over the figure which is present in the financial statement and is the tool to create the understanding about the company.
During the report the study is conducted over the financial statement of Marriott which is one of the leading multinational diversified hospitality company Managing the broad hotels and facility. The interpreting of the financial statement of the Marriot hotel it is important to ascertain who the users of the report are and what are their needs. The major users of the financial statement are shareholders who are primary concerned for receiving adequate return over their investment and for assessing the liquidity of the business. The other users are suppliers and lenders who are concerned about the security of their debts (Carraherand Van Auken, 2013).
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