42 Cards in this Set
| Front | Back |
|---|---|
|
Current Ratio (liquidity)
|
current assets / current liabilities
(found on the balance sheet)
|
|
Acid Test Ratio (liquidity)
|
(cash, short-term investments, notes receivable, accounts receivable) / current liabilities
(found on the balance sheet) (exclude inventories and prepaid expenses)
|
|
Operating Cash Flows to Current Liabilities (liquidity)
* expressed as a %
|
operating cash flows / average current liabilities
(found on the balance sheet and statement of cash flows)
**Avg. CL = (beginning of year + end of year) / 2
|
|
Accounts Receivable Turnover Ratio (liquidity)
|
total revenue / average accounts receivable
**Avg. AR = (beginning of year + end of year) / 2
|
|
Average Collection Period (liquidity)
|
365 / accounts receivable turnover
|
|
Working Capital Turnover Ratio (liquidity)
|
revenue / average working capital
**Working Capital = CA - CL
**Avg. WC = (beginning of year + end of year) / 2
|
|
Solvency Ratio (solvency)
|
total assets / total liabilities
|
|
Debt - Equity Ratio (solvency)
|
total liabilities / total owners equity
|
|
Long-Term Debt to Total Capitalization Ratio (solvency)
*expressed as a %
|
long-term debt / long-term debt and owners equity
|
|
Number of Times Interest Earned (solvency)
|
EBIT (earnings before interest and taxes) / interest expense
|
|
Fixed Charge Coverage Ratio (solvency)
|
EBIT + lease expense / interest expense and lease expense
|
|
Debt Service Coverage Ratio (solvency)
|
net operating income - cash transfers to replacement reserves / debt service payment
|
|
Operating Cash Flows to Total Liabilities (solvency)
*expressed as a %
|
operating cash flows / average total liabilities
|
|
Inventory Turnover (activity)
|
cost of food (beverage) used / average food (beverage) inventory
**Avg. Food (Beverage) Inventory =
(beginning inventory + ending inventory) / 2
|
|
Property and Equipment Turnover (activity)
|
total revenue / average property and equipment
**Avg. P&E = (beginning of year + end of year) / 2
|
|
Asset Turnover (activity)
|
total revenue / average total assets
**Avg. TA = (beginning of year + end of year) / 2
|
|
Paid Occupancy Percentage (activity)
*expressed as a %
|
paid rooms occupied / available rooms
**Available rooms = rooms available per day X 365
|
|
Complimentary Occupancy (activity)
*expressed as a %
|
complimentary rooms / available rooms
**Available rooms = rooms available per day X 365
|
|
Average Occupancy Per Room (activity)
*expressed by guests
|
number of guests / number of rooms occupied by guests
|
|
Multiple Occupancy Percentage (activity)
*expressed as a %
|
rooms occupied by two or more people / rooms occupied by guests
**Rooms occ. by 2 or more people =
total paid guests
|
|
Seat Turnover (activity)
|
number of people (covers) served / (number of seats X number fo days open)
|
|
Profit Margin (profitability)
*expressed as a %
|
net income / total revenue
|
|
Operating Efficiency Ratio (profitability)
|
gross operating profit / total revenue
|
|
Gross Operating Profit per Available Room (profitability)
*expressed in $
|
gross operating profit / number of rooms available
|
|
Return on Assets (profitability)
*expressed as a %
|
net income / average total assets
**Avg. TA = (beginning of year + end of year) / 2
Can also be calculated by:
profit margin X asset turnover
|
|
Gross Returns on Assests (profitability)
*expressed as a %
|
EBIT / average total assets
**Avg. TA = (beginning of year + end of year) / 2
|
|
Return on Owners Equity (profitability)
*expressed as a %
|
net income / average owners equity
**Avg. OE = (beginning of year + end of year) / 2
|
|
Return on Common Stockholder's Equity (profitability)
|
net income - preferred dividends / average common stockholders equity
**Avg. CSE = (beginning of year + end of year) / 2
|
|
Earnings per Share (profitability)
*expressed in $
|
net income / average common shares outstanding
**Avg. CSO = (beginning of year + end of year) / 2
|
|
Price/Earnings Ratio (profitability)
|
market price per share / earnings per share
|
|
Mix of Sales (operating)
|
revenue by department / total revenues
|
|
Average Room Rate (ADR) (operating)
*expressed in $
|
rooms revenue / number of rooms sold
|
|
Revenue per Available Room (RevPAR) (operating)
|
rooms revenue / available rooms
|
|
Revenue per Available Customer (RevPAC) (operating)
|
total revenue from hotel guests / total number of guests
|
|
Average Food Service Check (operating)
|
total food revenue / number of food covers
|
|
Food Cost Percentage (operating)
*expressed as a %
|
cost of food sold / food sales
|
|
Beverage Cost Percentage (operating)
*expressed as a %
|
cost of beverages sold / beverage sales
|
|
Labor Cost Percentage (operating)
*expressed as a %
|
total labor costs / total revenue
|
|
Straight Line Depreciation
|
(cost - salvage value) X (1/life)
|
|
Double Declining Balance
|
book value X (2(1/life))
|
|
Sum of the Years Digits
|
n / (n(n+1)/2) X (cost - salvage value)
|
|
Units of Production
|
(cost - salvage value) / units X units used
|
HB 302: EXAM 1 TERMS