• Share
  • Email
  • Embed
  • Like
  • Save
  • Private Content
Ratio analysis @ bec doms
 

Ratio analysis @ bec doms

on

  • 2,392 views

Ratio analysis @ bec doms

Ratio analysis @ bec doms

Statistics

Views

Total Views
2,392
Views on SlideShare
2,392
Embed Views
0

Actions

Likes
0
Downloads
96
Comments
0

0 Embeds 0

No embeds

Accessibility

Upload Details

Uploaded via as Microsoft PowerPoint

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

    Ratio analysis @ bec doms Ratio analysis @ bec doms Presentation Transcript

    • Chapter 5 Ratio Analysis
    • Competencies for Ratio Analysis
      • Identify standards against which the results of ratio analysis may be compared.
      • Explain the function and purposes of ratio analysis.
      • Identify common classes of ratios and describe the general purpose of each.
      • Calculate common liquidity ratios and describe how creditors, owners, and managers view them.
      • Calculate common solvency ratios and describe how creditors, owners, and managers view them.
      (continued)
    • Competencies for Ratio Analysis
      • Calculate common activity ratios and describe how creditors, owners, and managers view them.
      • Calculate common profitability ratios and describe how creditors, owners, and managers view them.
      • Calculate common operating ratios and explain how managers use them to evaluate operational results.
      • Summarize the limitations of ratio analysis, describe the usefulness of financial ratios, and explain how computers can be used in ratio analysis.
      (continued)
    • Potential Ratio Standards
      • Ratios from a past period
      • Industry averages
      • Budgeted or planned ratios
    • Purposes of Ratio Analysis
      • Managers use ratios to monitor operating performance and evaluate their success in meeting goals.
      • Creditors use ratios to evaluate the solvency of a business and to assess the risk of future loans.
      • Investors and potential investors use ratios to evaluate the performance of a business and the business’s ability to meet the investors’ specific goals.
      • Ratios reveal important information that may not be obvious or apparent in the financial statements.
    • Five Common Ratio Classes
      • Liquidity
        • Solvency
          • Activity
            • Profitability
              • Operating
    • Common Liquidity Ratios
      • Current ratio
      • Acid-test ratio
      • Operating cash flows to current liabilities ratio
      • Accounts receivable turnover
      • Average collection period
      • Working capital turnover
    • Common Solvency Ratios
      • Solvency ratio
      • Debt-equity ratio
      • Long-term debt to total capitalization ratio
      • Number of times interest earned ratio
      • Fixed charge coverage ratio
      • Debt service coverage ratio
      • Operating cash flows to total liabilities ratio
    • Common Activity Ratios
      • Inventory turnover
      • Property and equipment (fixed asset) turnover
      • Asset turnover
      • Paid occupancy percentage
      • Complimentary occupancy
      • Average occupancy per room
      • Multiple occupancy
      • Seat turnover
    • Common Profitability Ratios
      • Profit margin
      • Operating efficiency ratio
      • Return on assets
      • Gross return on assets
      • Return on owners’ equity
      • Return on common stockholders’ equity
      • Earnings per share
      • Price/earnings ratio
    • Common Operating Ratios
      • Mix of sales
      • Average room rate (ADR)
      • Revenue per available room (RevPAR)
      • Revenue per available customer (RevPAC)
      • Average food service check
      • Food cost percentage
      • Beverage cost percentage
      • Labor cost percentage