Verified Document

Financial Ratios From Income Statements Assessment

Financial Ratios From Income Statements: Accounting in hospitality management is carried out to identify and document financial issues and produce information regarding an organization's assets, liabilities, and investments. Through this process, the management of a hospitality establishment understands and interprets financial ratios, which are crucial for basic control of operations in the establishments. Some of the most important financial ratios in hospitality accounting include average daily rate, occupancy percentage, room sales to total sales, cost of food sold percentage, profit margins for rooms and F&B, housekeeping cost per occupied room, and cost of beverage sold percentage. These financial ratios can be determined or worked out from a company's income statements or operational data (Casado, 2006, p.103). For the 310-room hotel in Costa Mesa, California, the Occupancy percentage...

entage is 7,755: 310 = 25.02%
Cost of labor percentage for rooms is 103,202: 437,433 = 23% for F&B is 113,349: 302,188 = 37.5%

Cost of food sold percentage is 220,728: 85,840 = 38.9%

Cost of beverage sold percentage is 70, 578: 16, 177 = 23%

Average daily rate is 473, 979: 7, 755 = $61

Profit margin for rooms is 370, 777: 473, 979 = 78% for F&B is 66, 656: 302, 188 = 22%

Total revenue change from budget for rooms is 473, 979 -- 541, 800 = -$67, 821

for F&B is 302, 188-300, 801 = $1,387

Housekeeping cost per occupied room is 58, 229: 7,755 = $7.50

Room sales to total sales is 473, 979: 776, 167 = 61%

Total rooms division payroll per occupied room is 77,052: 7, 755 = $9.9

Based on these calculations from the departmental income statements, the…

Sources used in this document:
Reference:

Casado, M.A. (2006). Hospitality Accounting. In Hospitality management: a capstone course

(chap 9, pp.97-105). Upper Saddle River, NJ: Pearson Education, Inc.
Cite this Document:
Copy Bibliography Citation

Related Documents

Financial Ratios: Pepsico Financial Ratios Are Great
Words: 1507 Length: 5 Document Type: Essay

Financial Ratios: PepsiCo Financial ratios are great tools when it comes to the evaluation of the performance of a business entity. In that regard therefore, ratios are used by various stakeholder groups including but not limited to investors, suppliers, creditors, and even regulatory bodies. This text concerns itself with ratio analysis with my entity of choice being a publicly traded beverage company. For purposes of this discussion, I will concern myself

Financial Ratio Analysis Liquidity Apple
Words: 1702 Length: 4 Document Type: Research Paper

This means that Apple is generating more cash internally than Google. Further, given the increase in cash flows from operations in the case of Apple means that the company could have an enhanced value of net income in future. When it comes to cash flows from investing activities, there is an increase in the same in the case of Apple in the current financial year in comparison to the

Financial Accounting Costa Company Income Statement Revenue
Words: 488 Length: 2 Document Type: Case Study

Financial Accounting Costa Company Income Statement Revenue COGS Gross Profit less Depreciation Expense Insurance Marketing Misc Exp Property Taxes Rent Salaries Utilities Operating Expenses Net Income Balance Sheet Assets Cash Accounts Receivable Inventory Equipment Total Assets Liabilities Accounts Payable Long-Term Debt Total Liabilities Shareholders' Equity Common Stock Paid-In Capital Retained Earnings Total Equity Total L&SE With these two statements, there are two adjustments that have been requested. The $12,000 check cannot be processed yet. The sale needs to be recorded. The problem is that the sale will include inventories that moved, but without knowing what inventories were moved and what the markup would be,

Financial Ratios Calculation & Interpretation
Words: 899 Length: 2 Document Type: Application Essay

This ratio eliminates the stock figure from that of current assets and like the current ratio; it is used to measure the liquidity of a firm. The quick ratio may in some instances be preferred over the current ratio as it is inherently difficult to turn some assets into cash. In regard to the two companies, the quick ratio brings out Plume Inc. As being more risky as it

Financial Ratios Coca Cola Company Ratios Calculation
Words: 559 Length: 2 Document Type: Essay

Financial Ratios Coca Cola Company Ratios Calculation Ratio Operating Leverage ROI 6,172-4,521/4,521 EVA 10,154-(10,154x.12) Profit Margin-Sales 8,634/46,542 The Coca Cola Company had an operating leverage of 68.6% (2011 Annual Report, 2011). Return on Investment was 36.5%. The economic value added ratio was 8,935.52. The profit margin on sales was 18.6%. The return on investment ratio is used to evaluate the efficiency of a single investment or a group of investments (Return on Investment - ROI). There is not considered a right and

Financial Ratio Analysis
Words: 930 Length: 3 Document Type: Essay

Ratio Analysis Company Overview South Nassau Communities Hospital is a healthcare organization that delivers wide range of healthcare services for the communities of the Oceanside in New York. The organization offers general and specialty health services such as medical services, and surgical services for the varieties of patients' health cases. The financial results of the South Nassau Hospital at the end of the 2012 reveals that the Hospital recorded the revenue of $400

Sign Up for Unlimited Study Help

Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.

Get Started Now