Professional Documents
Culture Documents
HOTEL ACCOUNTING
SAP 13
Group 6 Members:
3. RATIO ANALYSIS
Ratio analysis is to use the company's data to calculate the ratios that reflect the
current company conditions in financial. By report analyzing the financial statements of the
information contained in the financial statements will be wider and deeper, the relationship
between the post one with zip others can be used as an indication of the company's financial
position as well as to demonstrate the correctness of the financial statements themselves. A
company manager services such as hotels, routinely need information that can be used to
evaluate the performance and business conditions that are running. Interpretation of the
balance sheet and income statement will be very helpful to know the company's financial
development. Interpretation can be arranged by size in the form of a ratio - a ratio that can be
used to predict the business and decision-making for the future. Liquidity ratios can be used
to determine the company's ability to pay off its short-term debts. Solvency ratios measure
how much debt compared to its assets. Solvency ratio also indicates the company's ability to
guarantee debt-debt to creditors, both short and long long activities. Ratiodemonstrate the
efficiency of use of the property company's activity in its business activity. While
Profitability is the ratio that indicates the company's ability to generate profits.
Discussion of calculation - the calculation of the above ratio we use balance sheet and
income statement Star Hotel in 2007 and 2008 as an example:
Balance Sheet
Star Hotel
December 31, 2007 and 2008
Description 2007 2008
Assets
Assets Current
Cash 503,000 520,000
Accounts Receivable (net) 190,000 160,000
Inventories 120,000 150,000
Prepaid Expenses 48,000 40,000
Total Current Assets 861 000 870,000
Investment 50,000 50,000
Property and Equipment (net) 7.483 million 7.49 million
Total Assets 8.394 million _ 8410 .000
1) LIQUIDITY RATIO
The liquidity ratio used to determine companys performance to pay off or
guarantee short-term debt to current assets.
Current Ratio (Current Ratio)
Current Ratio = Current Assets_
Current Liabilities
= 870,000 _
444,000
= 1.96
This ratio indicates that each of Rp1, Rp.1,96 current debts secured by current
assets. To assess whether the ratio is good or not, need to be compared with the average
standard of the hotel industry. Suppose an average standard hotel industry's current ratio
of 2: 1, the ratio of 1.96: 1 is less than 2: 1. It can be concluded that the Star Hotel are
likely to be difficult to pay off debt - short-term debt.
However, this ratio is not absolute because many hotels that operate without
difficulty despite having current ratios below 2: 1 .This is because in general the hotel
current assets in inventory numbers are relatively small.
At the hotel company, although it has a current ratio greater relative but the
composition of the supply is large enough, it will cause operational inefficiencies. This
type of supply in the hotel (foodstuffs, drinks and supplies), not easily sell / disbursed to
pay the debt.
Quick Ratio (acid Test Ratio)
The ratio rapidly measure of liquidity based on current assets that can be quickly
melted into a means of payment, namely cash, securities and receivables. In hotel
operations, although supplies are included as current assets but require a long time to
melt it into cash.
Acid Test Ratio = Cash + Marketable Securities + Accounts Receivable
Current Liabilities
= 520,000 + 0 +160,000
444,000
= 1.53
This ratio shows that every Rp. 1 - 1.53 current liabilities secured by liquid
assets that can be quickly disbursed. The ratio can be expressed in figures 1.53: 1 or
153%. To determine whether or not this ratio, it should be compared with the average
standard - the industry average. For example, the average - average industrial acid test
ratio of 1: 1, then 1.53: 1 is greater than 1: 1. It can be concluded that the management
is not difficult to pay off debt short. Acid term debt ratio test is the most appropriate
method to measure the level of liquidity of the hotel company.
3) RATIOS ACTIVITY
Ratios measure the effectiveness of management activity in the use of
resources in the management company. Management effectiveness use of these
resources for example, accelerate collection of receivables that can be immediately
used to finance the operations and use the inventory to generate revenue from the sale.
Receivable Turnover Rate (Accounts Receivable Turnover)
Hotel sales transactions conducted largely on credit sales, so the accounts
receivable in the hotel business assets are sufficiently large compared with others.
Receivablefrom sales on credit to the guest is expected to be liquidated into cash ,
(assuming that all sales are credit sales,) the Receivable Turnover Rate is
calculated as follows:
Accounts Receivable Turnover = Total Credit Sales
Average A. Receivable
= 2.062 million
175,000
= 11.78 times
Average Accounts Receivable = Beginning Ending +
2
= 190,000 +160,000
2
= 175,000
or greater this number the faster turnaround, it will be better, because there is the
possibility of the faster receivables liquidated into cash. Conversely the smaller
the rate is slower receivables liquidated into cash. If the average - industry average
of 20 times, 11.78 times less than 20 times. This indicates that the management
has not been effective enough in making use of receivables to finance the
operations.
Inventory Turnover (Inventory Turnover)
Turnover of inventory or inventory turnover, measured how fast
operational inventory. Spinning in general, the faster the spin the better inventory
effect on the operation. That may mean that the supply was taken for sale and
storage and maintenance costs can be reduced. Costs for maintenance and storage
of supplies, among others, namely: warehouse rental, insurance, electricity,
refrigeration, employees and the funds used to purchase supplies.
Food and Beverage Department Income Statement
Star Hotel
For the Years Ended December, 31, 2008
Food Beverage
Sales 665,000 152,000
Cost of Sales:
Beginning Inventory 10,000 4,000
Purchase 275,000 66,000
Less: Ending Inventory (30,000) (10,000)
Cost Of Goods Used 255,000 60,000
Less : Employee Meals (5000) (0)
Cost of Goods Sold 250,000 60,000
Gross Profit 415 000 92 000
Expenses:
Payroll and Related Expenses 200,000 45,000
Other Direct Expenses 60,000 30,000
Total Expenses 260,000 70,000
Departmental Income 155,000 _ 22,000
Inventory turns meals of 12.75 times over the years means that the
circulation of the reduced availability of 1 times a month. This figure means that
the overall purchase (charging) inventory conducted during the month. If
management standards set by 24 times, then 12.75 times <24 times, which means
the food is very slow turnover rate. Rotation of the slow food indicates that much
inventory piling up in warehouses.
As for the beverage inventory turnover rate of Star Awards 2008 can be
calculated as follows:
= 60,000
7,000
= 8.57 times
+10,000 2
= 4,000
= 7,000
Beverage inventory turnover rate of 8.57 times mean that in a year will do
the charging / repurchase as much as 8 57 times or every 43 days. Not all beverage
items are always sold out during that period, but some other items in-stock return
during the period. In general, the hotel industry which has several bars and
lounges, the beverage inventory turnover reach 15 times per year, or 1.25 times
per month.
4) PROFITABILITY RATIOS
Profitability Ratios Profitability Ratio or describe the performance and
accountability of management to manage the hotel.
Profit Margin (Profit Margin)
Management often evaluate their ability to generate profits (profit) of all
revenues from sales made. The profit margin is calculated as net income (net
income) divided by total revenue (total revenue).
= 188,000 x100%
8.402 million
= 2.23%
Uniform System of Accounts for the Lodging Industry contains five sections that
are subdivided into 15 sections. The discussions include the preparation of financial
statements of the hospitality industry, financial analysis, financial statement format,
guidance in allocating operational costs, preparation and control of operational budgets.
For example, the preparation of flow charts, simple recording examples in the hospitality
industry, and expense / cost dictionaries, and also sample reports resulting from the
application of the Uniform System of Accounts. One of the activities that need to be done
in the management of hotel business finance is the need for analysis of financial and
operational statements. Financial analysis associated with the operations aims to present
information in a structured about the state of the company's finances. The analysis of the
company's financial statements is basically to determine the level of profitability (profit)
and level of risk or level of company health. Financial analysis includes the analysis of
financial ratios, weakness analysis and financial and operational strengths, which are
helpful in assessing past management performance and prospects in the future. The
analysis includes information on: the achievement level of planned operational targets,
level of profit achievement, cost efficiency, effectiveness of cash and receivable
management, inventory management effectiveness and so on.
In the analysis of financial statements, there is a need to compare information.
Comparisons can be made on different grounds:
1) Intra company basis.
Compare a post or relationship of a companys financial in the current year with the
same post or relationship in previous years.
2) Average industry (Industry Averages)
Compare a post or relationship of a companys financial to the industry average
(norms) issued by a financial rating agency.
3) Intercompany basis (intercompany basis)
Compare a post or relationship of corporate financial in the current year with the
same post or relationship in one or more other competing companies.
b. Analysis tools
Financial analysis related to operational can be done by using analysis tool in
the form of Financial Report and Daily Operational Report.
1. Financial Statements
The Hotel Financial Statement consists of 2 (two) main reports: Balance Sheet and
Income Statement. The financial statements present the company's financial
information in the past so that it describes "what has happened". The numbers
presented in the financial statements will only be data for management to know
the financial condition of the company, among others: the amount of cash, the
amount of accounts receivable, the amount of debt, the rate of profit. Without
further financial analysis, these numbers can not describe whether the condition is
favorable or detrimental to a company's financial health. The analysis provides
benchmarks and descriptions of the conditions for management to make business
decisions.
2. Daily Operations Report
Beside the Financial Statement, in the operation of the hotel also prepared daily
operational reports, which presents the level of operational achievement every
day. This report specifically presents the level of sales and statistics of two major
departments: Room and Food and Beverage. Because it is presented every day, the
management can immediately know the level of achievement of plans and
business targets every day. The analysis provides information on the level of
achievement of operational budget, achievement of sales level, pricing and
discount policy and business productivity.
c. Analytical Procedures
The analysis that doing from time to time is strongly influenced by several
factors, including: economy, market, competition, general conditions and so on. Thus,
these things need to be considered in the analysis.
1. Understanding the Background of Financial Data
The analysis is need to understand first the guidelines in the preparation of
financial statements. Accounting Policies that used, for example: FIFO for the
management of foodstuff inventory, Straight-line Method in calculating
Depreciation of Fixed Assets, Average Method for calculation of the price of
inventory, Method of Percentage of Cost for calculation of Selling Price, and so
on. System and Format of Financial Statement, it is necessary to understand the
format used in preparing the Financial Statements, for example in the hotel
financial statements, it is necessary to prepare the financial statements of each
department and the calculation of profit and loss of each department. In general,
the hotel financial statements are prepared based on the "Uniform System of
Account for Hotels" standardized by AHMA (American Hotel Motel Association).
2. Conditions Affecting the Business of a Hotel
In doing analysis, it is necessary to consider the conditions affecting the business
of a hotel. Conditions such as: Economy, Tourism, Transportation, State Security,
Politics, Nature Conditions, Competition / market and so on. These conditions
may affect the company's financial condition beyond the limits of management
control. For example, a natural disaster in a city will affect the selling rate of a
hotel room (down), it is certainly beyond the limits of the management's ability to
market the hotel. These events need to be considered in analyzing.
3. Reviewing the Preparation of Financial Statements
Before analyzing the financial statements, it is necessary to review the preparation
of the financial statements from year to year. This step is very important to make
sure whether accounting methods are used consistently from year to year. Changes
in the method of depreciation of fixed assets (for example: from the Burden
Decrease method to the straight-line method) will affect the calculated profit
obtained. If this happens, then the increase in profits derived not from business
activities, but only from changes in accounting methods only.
4. Analyzing Financial Statements
The last step is to analyze the financial statements. Financial statement analysis
needs to be done because the financial statements prepared by the company is still
general and aimed not only for the interpretation and analysis. In doing the
analysis there are several techniques that can be used, one of which is with the
analysis technique Ratio Financial Statement
REFERENCE
Harahap, Sofyan Syafri. 2007. Analisis Kritis Atas Laporan Keuangan. Jakarta: Hotel Losso
Huda, Cak Narul. 2012.Uniform System Of Accounts For Lodging Industries. http://cak-
huda.blogspot.com/2011/03/uniform-system-of-accounts-for-lodging.html
Widanaputra, AAGP., Suprasto, H Bambang., Ariyanto, Dodik., Sari, Maria M Ratna. 2009.
Akuntansi Hotel (Pendekatan Sistem Informasi). Denpasar: Graha Ilmu