| | Ratio | Working | 2009 | Working | 2010 | 1 | Return on Equity(ROE) | PBIT x 100Average Owners Equity | 398000 x 100(390000 + 430000)/2 | 97.07% | 292000 x 100(430000 + 527300)/2 | 61% | 2 | Return on Assets(ROA) | PBIT x 100Average Total Assets -CL | 398000 x 100[(1000000 + 1015000)– (165000 + 152200)]/2 | 46.88% | 292.000 x 100[(1015000 + 1126300)-( 152200 + 174000)]/2 | 32.18% | 3 | Net Profit Margin(NP%) | PBIT x 100Sales | 398000 x 1002180000 | 18.26% | 292000 x 1002232000 | 13.08% | 4 | Gross Profit Margin(GP%) | Gross Profit x 100Sales | 1350000 x 1002180000 | 61.93% | 1282000 x 1002232000 | 57.44% | 5 | Asset Turnover | SalesAverage Total Assets – CL | 2180000[(1000000 +
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On the other hand, shareholder may prefer a lower current ratio because the more firm’s asset, the more chances that we can use to grow the business. Limitation of the current ratio is that current asset is included inventory which is a difficult item to liquidate quickly so quick ratio is often referred to current ratio. It also knows as the acid test which excluded inventory. Thus this ratio offer more accuracy in liquidity. As appendix above shows that the quick ratio for 2010 was 1.6:1 rather than 1.06:1 for 2009. This ratio was changed not much comparing to the current ratio because the most effect to the number of current asset is not inventory. Finally, the cash ratio is also important liquidity ratio. It has just cash and cash equivalent. This ratio is important in determining hotel’s ability to pay off its current financial problem, especially for urgent happens that need to be solve instantly. The cash ratio for 2010 was 85.6% versus 54% for 2009. This was reflected the hotel hold more cash in 2010. Effectively creating the company’s profit is compare to resources and activities needed to produce it. Profitability ratios provide several different measures such as: Net profit margin ratio or gross profit margin ratio, return on equity and return on assets to recognize the hotel’s ability to create profit (Michigan State University Extension, 2002). Those ratios are also most meaningful to owners. Both gross

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