Financial analysis of firms in aviation, tourism and hospitality services

The aviation sector in India is amongst the most promising ones, driven by a massive boom in tourism and increasing levels of disposable incomes. Tourism is the largest service industry in India, with a contribution of 6.23% to the national Gross Domestic Product (GDP) and 8.78% of the total employment in India. During the past few decades, hospitality and tourism has emerged as one of the world's major industries. However, aviation sector in India is going through difficult times as their debt levels are rising and margins are declining. The financial analysis of of firms belonging to aviation, tourism and hospitality services in India may be beneficial to lenders, investors and to the industry to know the potential financing patterns emerging in this industry. This study examines the profitability, liquidity, financial leverage, market capitalization, dividend pay-out ratio, value of the firm, cost of capital and share holding pattern of these firms over the period from 1989 to 2010.