Business Finance - Accounting Ratios Assignment

Ratio Information

Key Ratios

Total Occupancy % = Occupied Rooms / Total Rooms

Available Occupancy % = Occupied Rooms / Total Available Rooms for Sale

Average Occupancy % = Total Guests / Total Occupied Rooms

Food Inventory Turnover = Cost of Food Sold / Average Food Inventory

Average Room Rate = Total Room Revenue / Total Rooms Sold

RevPAR = Total Room Revenue / Total Rooms OR Average Room Rate x Occupancy %

Average Food Check = Total Food Revenue / Total Customers

Wage Cost % = Department Wage Cost / Department Revenue

Profit Margin = Profit Dollars / Revenue Dollars

Retention or Flow Through = Change in Profit Dollars / Change in Revenue Dollars

EBIDTA = Earnings before interest, depreciation, taxes, and amortization

Return on Assets = Net Profit / Average Total Assets

Return on Owner’s Equity = Net Profit / Average Owner’s Equity

Earnings Per Share = Net Profit / Average Outstanding Common Shares

Price Earning Ratio = Stock Price per Share / Earnings per Share

Current Ratio = Current Assets / Current Liabilities

Acid Test Rate = Cash and Near Cash Assets / Current Liabilities

Accounts Receivable Turnover = Total Revenue / Average Accounts Receivable

Solvency Ratio = Total Assets / Total Liabilities

Debt Equity Ratio = Total Liabilities / Total Owner Equity