Travel & Tourism Finance Assignement

PROFITABILITY RATIOS. * Gross Profit / sales Foyle Hotel 58400/ 125000 x coulomb = 46.72% subvert hummock Hotel 79200/150000 x carbon = 52.8% Purpose. Gross lucre is a basic amount of money of the profitability of the transmission line and it shows the think a business can make from making and selling its products. figure revenue profit is done in the outset depart of the profit and loss account, known as the employment account. Trend. twain hotels, where to a higher place the industry middling of 30%. The Foyle hotel was higher up average by 16.72% and the Cave Hill hotel was above by 22.8%, center Cave Hill was up by 6.08% in equality to Foyle hotel. Interpretation. Gross profit balance may be indicated to what fulfilment the selling prices of goods per unit may be reduced without subject losses on operations. It reflects capability with which a firm produces its products. As the complete(a) profit is arrange by deducting cost of goods sell from net sales, higher the gross profit better it is. thither is no standard GP ratio for evaluation. It may set off from business to business. However, the gross profit earned should be fit to recover exclusively operating expenses and to build up militia after paid all fixed interest  charges and dividends. * discharge profit/sales. Foyle Hotel 41600/125000 x 100 = 32.

28% Cave Hill hotel 63300/15000 x 100 = 42.0% Purpose. This ratio measures how much net profit is generated by individually £100 of sales. It is typically used as a measure of the efficiency of the firms marketing spend. This is because the running costs of an ceremonious business will typi! cally be the same from course of view to year. Therefore the only expense which can change significantly in marketing costs. If a firm spends £20.000 on a marketing campaign, then it needs top generate an unneeded £20,000 net profit in order to brake even. Trend. The Foyle hotel was 9.72% at a lower place cave Hill Hotel. The industry average was 20% so both hotels where above the industry average. Cave Hill was above average by 22% and...If you want to get a full essay, order it on our website: BestEssayCheap.com

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