managing financial decisions hoge hotelschool den haag samenvatting summary 2025
,managing financial decisions hoge hotelschool den haag samenvatting summary 2025
, managing financial decisions hoge hotelschool den haag samenvatting summary 2025
Lecture 1: Analyzing Operating Results
Learning Goals
USALI = Uniform System of Accounts for the Lodging Industry
Balance Sheet (Statement of Financial Position)
= Financial statement reflecting the financial position of the hospitality operation at a given date. Reflects
a balance between an organization's assets and claims to its assets called liabilities and owner´s equity.
Useful for conveying financial information to creditors and investors.
- The Account Format lists the asset accounts on the left side of the page and the liability and
owner's equity accounts on the right side.
- The Report Format shows assets first, followed by liabilities and owner's equity.
Assets = Liabilities + Equity
Assets must always equal liabilities and equity, as they are covered by creditor/owner investments
Assets
Current Assets = can be converted to cash or used in operations within one year or in a normal
operating cycle.
- Cash
- Accounts Receivable
- Inventories
- Operating equipment (linen, china, glassware, silver, uniforms); a current asset if the useful life is
less than one year, otherwise specified under “other assets”
- Prepaid expenses
- Marketable securities (short-term investments such as T-bills)
Liquidity = measures the operation's ability to convert assets to cash
Non-current Assets = company long-term investments where the full value will not be realized within
the accounting year. Examples of noncurrent assets include investments, property, land, equipment and
intangible assets, such as trademarks and goodwill.
Current Liabilities = obligations that are expected to be satisfied either by using current assets or by
creating other current liabilities within one year or a normal operating cycle.
Money owed that must be paid within a year
- Payables
- Amounts received in advance (such as advance deposits)
- Obligations to be paid in the current period (e.g. current maturities of long-term debt)
- Dividends payable
- Income taxes payable
Long-Term Liabilities = obligations at the balance sheet date that are expected to be paid beyond the
next 12 months; notes payable, mortgages payable, bonds payable etc.
2
, managing financial decisions hoge hotelschool den haag samenvatting summary 2025
Owner's Equity = reflects the owner's interest in the operation's assets. Include common stock,
additional paid-in capital, retained earnings, treasury stock etc.
Balance Sheet Analysis
Horizontal Analysis (comparative
statements) = comparing two balance
sheets – the current balance sheet and the
balance sheet of the previous period.
- Simplest approach to analysis
and is essential to the fair
reporting of the financial
information.
- Both absolute (change in units) and
relative (% change) comparisons
are presented.
Vertical Analysis (common-size
statements) = analysis of individual financial statements by reducing financial information to percentages
(income statement: as a % of total revenue, balance sheet: as a % of total assets)
Base-year comparison = an analysis that uses a base period as a starting point (set at 100%) and
comparing all subsequent periods with the base
3
,managing financial decisions hoge hotelschool den haag samenvatting summary 2025
, managing financial decisions hoge hotelschool den haag samenvatting summary 2025
Lecture 1: Analyzing Operating Results
Learning Goals
USALI = Uniform System of Accounts for the Lodging Industry
Balance Sheet (Statement of Financial Position)
= Financial statement reflecting the financial position of the hospitality operation at a given date. Reflects
a balance between an organization's assets and claims to its assets called liabilities and owner´s equity.
Useful for conveying financial information to creditors and investors.
- The Account Format lists the asset accounts on the left side of the page and the liability and
owner's equity accounts on the right side.
- The Report Format shows assets first, followed by liabilities and owner's equity.
Assets = Liabilities + Equity
Assets must always equal liabilities and equity, as they are covered by creditor/owner investments
Assets
Current Assets = can be converted to cash or used in operations within one year or in a normal
operating cycle.
- Cash
- Accounts Receivable
- Inventories
- Operating equipment (linen, china, glassware, silver, uniforms); a current asset if the useful life is
less than one year, otherwise specified under “other assets”
- Prepaid expenses
- Marketable securities (short-term investments such as T-bills)
Liquidity = measures the operation's ability to convert assets to cash
Non-current Assets = company long-term investments where the full value will not be realized within
the accounting year. Examples of noncurrent assets include investments, property, land, equipment and
intangible assets, such as trademarks and goodwill.
Current Liabilities = obligations that are expected to be satisfied either by using current assets or by
creating other current liabilities within one year or a normal operating cycle.
Money owed that must be paid within a year
- Payables
- Amounts received in advance (such as advance deposits)
- Obligations to be paid in the current period (e.g. current maturities of long-term debt)
- Dividends payable
- Income taxes payable
Long-Term Liabilities = obligations at the balance sheet date that are expected to be paid beyond the
next 12 months; notes payable, mortgages payable, bonds payable etc.
2
, managing financial decisions hoge hotelschool den haag samenvatting summary 2025
Owner's Equity = reflects the owner's interest in the operation's assets. Include common stock,
additional paid-in capital, retained earnings, treasury stock etc.
Balance Sheet Analysis
Horizontal Analysis (comparative
statements) = comparing two balance
sheets – the current balance sheet and the
balance sheet of the previous period.
- Simplest approach to analysis
and is essential to the fair
reporting of the financial
information.
- Both absolute (change in units) and
relative (% change) comparisons
are presented.
Vertical Analysis (common-size
statements) = analysis of individual financial statements by reducing financial information to percentages
(income statement: as a % of total revenue, balance sheet: as a % of total assets)
Base-year comparison = an analysis that uses a base period as a starting point (set at 100%) and
comparing all subsequent periods with the base
3
