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HB 302: EXAM 2
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 |