Chapter 15 - Ratio Analysis Flashcards
what are the 5 classes of ratios?
liquidity, solvency, activity, profitability, operating
what is current ratio?
current ratio = current asset / current liabilities
what is acid-test ratio?
acid-test ratio = (current asset - prepaids - inventory) / current liabilities
what is accounts receivable turnover?
this means speed of conversion
revenue / average accounts receivable
what is average collection period?
365 / accounts receivable turnover = days
what is solvency ratio?
total assets / total liabilities
what is debt - equity ratio?
total liability / owner’s equity
what is numb r of times interest earned ratio?
EBIT / interest expense
what is inventory turnover
cost of food or beverage / average inventory
what is paid occupancy percentage
paid room occupied / rooms available
what is complimentary occupancy?
complimentary rooms / rooms available
what is average occupancy per room?
number of room guests / number of rooms occupied
what is multiple occupancy percentage?
rooms occupied by two or more people / rooms occupied by guests
what is profit margin?
net income / total revenue
what is return on assets?
net income / total assets
what is return on owner’s equity?
net income / average owner’s equity
what is earning per share?
net income / average common shares outstanding
what is ADR?
rooms revenue / number of rooms sold
what is RevPAR?
paid occupancy percentage x ADR
what is RevPAC?
total revenue from hotel guests / number of hotel guests
what is average food service check?
total food revenue / number of food covers
what is food cost percentage?
cost of food / food sales
what is labor cost percentage?
labor cost by department / department revenues
