Select a publicly traded hospitality company that interests you.
Research that company and pull the company’s most recent income statement, balance sheet, and statement of cash flow.
Write a 525- to 700-word response that includes the following:
- Describe the information that can be derived from each statement
- Assess the purpose of the specific numbers that are carried over from one statement to another
- Determine the financial health of the company based on these documents
Cite all sources according to APA formatting guidelines.
Financial Ratios Chart
Place an “X” in the cell under the person that would use each ratio most frequently.
| Hospitality Manager (Lodging or F&B) | Vice President | CFO | Potential Investor | |
| Average daily rate (ADR) | ||||
| Average sales per guest (check average) | ||||
| Beverage cost percentage | ||||
| Cost of beverage sold (cost of sales: beverage) | ||||
| Cost of food fold (cost of sales: food) | ||||
| Cost per occupied room (CPOR) | ||||
| Debt‐to‐assets | ||||
| Debt‐to‐equity | ||||
| Dividend payout | ||||
| Dividend yield | ||||
| Earnings per share | ||||
| Food cost percentage | ||||
| Gross operating profit margin | ||||
| Gross operating profit per available room (GOPPAR) | ||||
| Inventory turnover | ||||
| Labor cost percentage | ||||
| Occupancy percentage | ||||
| Operating cash flows to total liabilities | ||||
| Price‐to‐earnings ratio | ||||
| Profit margin | ||||
| Property and equipment turnover | ||||
| Return on assets | ||||
| Return on equity | ||||
| Revenue per available customer (RevPAC) | ||||
| Revenue per available room (RevPAR) | ||||
| Revenue per available seat hour (RevPASH) | ||||
| Seat turnover | ||||
| Solvency | ||||
| Times interest earned | ||||
| Total asset turnover |
Explain in no more than 350 words why different ratios are important to different people within an organization, and why it is important to know something about each the financial ratios.
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