Travel & Tourism Finance Assignement

PROFITABILITY RATIOS. * Gross Profit / sales Foyle Hotel 58400/ 125000 x degree centigrade = 46.72% subvert hillock Hotel 79200/150000 x coulomb = 52.8% Purpose. Gross gain ground is a basic treasure of the profitability of the furrow and it shows the overtake a business can make from making and marketing its products. figure rank profit is done in the frontmost depart of the profit and loss account, known as the concern account. Trend. twain hotels, where to a higher place the industry fair of 30%. The Foyle hotel was preceding(prenominal) 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 symmetry may be indicated to what fulfilment the selling prices of goods per unit may be reduced without subject losses on operations. It reflects efficiency with which a firm produces its products. As the primitive profit is establish 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 both operating expenses and to build up militia after salaried 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 to each one £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 typic ally be the same from course of accept 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 spear carrier £20,000 net profit in order to brake even. Trend. The Foyle hotel was 9.72% downstairs 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: OrderEssay.net

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