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CHAE Book 2 > Chapter 15 - Ratio Analysis > Flashcards

Chapter 15 - Ratio Analysis Flashcards

1
Q

what are the 5 classes of ratios?

A

liquidity, solvency, activity, profitability, operating

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2
Q

what is current ratio?

A

current ratio = current asset / current liabilities

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3
Q

what is acid-test ratio?

A

acid-test ratio = (current asset - prepaids - inventory) / current liabilities

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4
Q

what is accounts receivable turnover?

A

this means speed of conversion

revenue / average accounts receivable

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5
Q

what is average collection period?

A

365 / accounts receivable turnover = days

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6
Q

what is solvency ratio?

A

total assets / total liabilities

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7
Q

what is debt - equity ratio?

A

total liability / owner’s equity

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8
Q

what is numb r of times interest earned ratio?

A

EBIT / interest expense

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9
Q

what is inventory turnover

A

cost of food or beverage / average inventory

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10
Q

what is paid occupancy percentage

A

paid room occupied / rooms available

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11
Q

what is complimentary occupancy?

A

complimentary rooms / rooms available

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12
Q

what is average occupancy per room?

A

number of room guests / number of rooms occupied

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13
Q

what is multiple occupancy percentage?

A

rooms occupied by two or more people / rooms occupied by guests

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14
Q

what is profit margin?

A

net income / total revenue

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15
Q

what is return on assets?

A

net income / total assets

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16
Q

what is return on owner’s equity?

A

net income / average owner’s equity

17
Q

what is earning per share?

A

net income / average common shares outstanding

18
Q

what is ADR?

A

rooms revenue / number of rooms sold

19
Q

what is RevPAR?

A

paid occupancy percentage x ADR

20
Q

what is RevPAC?

A

total revenue from hotel guests / number of hotel guests

21
Q

what is average food service check?

A

total food revenue / number of food covers

22
Q

what is food cost percentage?

A

cost of food / food sales

23
Q

what is labor cost percentage?

A

labor cost by department / department revenues

CHAE Book 2 (24 decks)

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