Financial Ratios Analysis Essay Example | Topics and Well Written Essays - 750 words

Financial Ratios Analysis - Essay Exampled. personify of beverage sold percentage Cost of beverage sold as percentage of total beverage sales. This works out to be 22.9%, which is within the range of industry fairish of 20-25%. Interestingly, the actual is very close to budgeted average of 22.5%. This shows that while management has make efforts to achieve what was budgeted, the efforts are certainly within the industry average.e. Average daily rate This is taken as Room revenue to paid elbow room nights. The paid room night is taken as 7555 and the average daily rate works out to be $62.7. As the value for previous year is non available, it is not possible to compare.f. Profit moulding This is income to revenue. The margin works out to be 56.4% of revenue. Profit margin has been worked out separately for room services and F&B. Profit margin for room service stands at 78.2%, which is marginally higher than the industry average of 70-75%. At the same time, F&B division has get margin of 22% as against the industry average of 15-25%.g. Total revenue change from budget for live and F&B This is actual revenue to budgeted revenue. This is almost one for F&B but 0.88 for rooms. This is shape up corroborated by poorer occupancy rate. Marketing of room service is essential in this context.h. Housekeeping cost per occupy room This is ratio of total housekeeping costs to total room sold. The actual is 6.5 which are intimately lower than budgeted 7.6. Thus, it appears that housekeeping costs has been controlled considerably.i. Room sales to total sales This is a good indication to gauge revenue generation by rooms. On the whole, room sales contributed 61.1% of total revenue. But this is shew to be lower than budgeted 64.3%. This calls for some strategic intervention to boost up revenue collection from room service.Based on the above analysis, it can be concluded that F&B division has performed well(p) in comparison