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Hospitality Industry Key Ratios

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Occupancy Rate

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Occupancy Rate=Number of Rooms OccupiedTotal Number of Available Rooms×100\text{Occupancy Rate} = \frac{\text{Number of Rooms Occupied}}{\text{Total Number of Available Rooms}} \times 100

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Average Daily Rate (ADR)

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ADR=Total Room RevenueNumber of Rooms Sold\text{ADR} = \frac{\text{Total Room Revenue}}{\text{Number of Rooms Sold}}

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Revenue Per Available Room (RevPAR)

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RevPAR=ADR×Occupancy Rate\text{RevPAR} = \text{ADR} \times \text{Occupancy Rate}

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Gross Operating Profit Per Available Room (GOPPAR)

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GOPPAR=Total Gross Operating ProfitTotal Number of Available Rooms\text{GOPPAR} = \frac{\text{Total Gross Operating Profit}}{\text{Total Number of Available Rooms}}

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Food Cost Percentage

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Food Cost Percentage=Total Cost of Food ConsumedTotal Food Sales×100\text{Food Cost Percentage} = \frac{\text{Total Cost of Food Consumed}}{\text{Total Food Sales}} \times 100

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Beverage Cost Percentage

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Beverage Cost Percentage=Total Beverage CostTotal Beverage Sales×100\text{Beverage Cost Percentage} = \frac{\text{Total Beverage Cost}}{\text{Total Beverage Sales}} \times 100

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Labor Cost Percentage

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Labor Cost Percentage=Total Labor CostsTotal Sales×100\text{Labor Cost Percentage} = \frac{\text{Total Labor Costs}}{\text{Total Sales}} \times 100

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Profit Margin

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Profit Margin=Net ProfitTotal Revenue×100\text{Profit Margin} = \frac{\text{Net Profit}}{\text{Total Revenue}} \times 100

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Return on Investment (ROI)

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ROI=Net ProfitTotal Investment×100\text{ROI} = \frac{\text{Net Profit}}{\text{Total Investment}} \times 100

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Debt Service Coverage Ratio (DSCR)

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DSCR=Net Operating IncomeTotal Debt Service\text{DSCR} = \frac{\text{Net Operating Income}}{\text{Total Debt Service}}

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Current Ratio

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Current Ratio=Current AssetsCurrent Liabilities\text{Current Ratio} = \frac{\text{Current Assets}}{\text{Current Liabilities}}

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Quick Ratio

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Quick Ratio=Current AssetsInventoryCurrent Liabilities\text{Quick Ratio} = \frac{\text{Current Assets} - \text{Inventory}}{\text{Current Liabilities}}

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Inventory Turnover Ratio

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Inventory Turnover Ratio=Cost of Goods SoldAverage Inventory\text{Inventory Turnover Ratio} = \frac{\text{Cost of Goods Sold}}{\text{Average Inventory}}

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Fixed Asset Turnover Ratio

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Fixed Asset Turnover Ratio=Net SalesNet Fixed Assets\text{Fixed Asset Turnover Ratio} = \frac{\text{Net Sales}}{\text{Net Fixed Assets}}

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Net Profit Margin

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Net Profit Margin=Net IncomeRevenue×100\text{Net Profit Margin} = \frac{\text{Net Income}}{\text{Revenue}} \times 100

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Operating Efficiency Ratio

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Operating Efficiency Ratio=Total Operating ExpensesTotal Revenue\text{Operating Efficiency Ratio} = \frac{\text{Total Operating Expenses}}{\text{Total Revenue}}

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Break-even Point

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Break-even Point=Fixed CostsContribution Margin per Unit\text{Break-even Point} = \frac{\text{Fixed Costs}}{\text{Contribution Margin per Unit}}

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Contribution Margin Ratio

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Contribution Margin Ratio=Contribution MarginTotal Sales×100\text{Contribution Margin Ratio} = \frac{\text{Contribution Margin}}{\text{Total Sales}} \times 100

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Employee Turnover Rate

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Employee Turnover Rate=Number of Employees LeavingAverage Number of Employees×100\text{Employee Turnover Rate} = \frac{\text{Number of Employees Leaving}}{\text{Average Number of Employees}} \times 100

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Guest Satisfaction Score

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Calculated based on customer feedback and surveys.

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