Ratio Forms- Usali (Uniform System American Lodging Industry

6695 Words Mar 8th, 2012 27 Pages


pa 11 Fi nanci aI Analysis

Section 9
Financial Statement Formats
The formats of the Summary Statement of Income and departmental statements can of coursebe designed to provide only ODeamount column to record figures für the time period covered by the statement. While the primary purpose of any of these statements is to present the revenue and expenses für the most recent accounting period, the true significance of such amounts can only be fully understood when compared with budgets and/or the corresponding amounts für preceding periods. Accordingly, individual properties should modify the format of these statements to meet their needs ~nd requirements. For example, properties may find it useful to expand this ~asic
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The usefulness these tools of is predicatedon a commonality of definition and understanding.The various ratios and statisticsthat canbedeveloped and be useful arenumerous.The intent of this sectionis to provide a consistent,uniform definition of basiclodging industry ratlosand statistics. This sectionincludes only thoseratlos and statisticsthat are in widespreadgeneralusewithin the industry. It is not intended to be a complete listing and definition of all possiblerelevant ratlos and statistics.

Finandal statements issued by lodging properties contain a considerable amount of information. A thorough analysis oEthis information requires more than simply reading the reported figures and facts. Users of finandal statementsneed to be ahle to interpret the figures and facts, and make them yield information that reveals aspects of the property 's financial situation or operation that could otherwise go unnoticed. This is accomplished through ratio analysis, which compares related facts reported on finandal statements: A ratio gives mathematical expression to a relationship between two figures, and is calculated by dividing one figure by the other. Although ratios are critical to any finandal analysis, they are only indicators and, as indicators, they are meaningful only when compared to useful criteria. Useful criteria with which to compare the
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