Financial Management and Accounting Ratios in Hospitality Industry

International
Hotel
Management

EXECUTIVE SUMMARY
This project is based upon Gatsby Grange as being the part for small chain of
Boutique situated at United Kingdom and Northern Ireland. In this assignment, accounting
ratios are analysed with various categories of solvency, turnover and profitability ratios for
identifying their benefits and limitations towards hospitality industry. It is most important for
company to determine its current position in perfect competition market that results in
generating strategic decision-making procedure for future period.

Table of Contents
EXECUTIVE SUMMARY........................................................................................................2
INTRODUCTION......................................................................................................................4
MAIN BODY.............................................................................................................................4
1. Analysing and evaluating financial management for decisions of cost and revenue with
various methods and techniques.............................................................................................4
(A). Calculate accounting ratios for the two consecutive years of 2018 and 2019 through
liquidity and profitability proportion......................................................................................4
(B). Understanding ratios with its essential fluctuation for hotel management.....................8
(C). Explain benefits and limitations of ratios in hospitality decision making....................11
2. Covered in PPT.................................................................................................................15
CONCLUSION........................................................................................................................15
RECOMMENDATION...........................................................................................................15
REFERENCES.........................................................................................................................16

INTRODUCTION
The financial operations for an organisation includes the key concepts of Net Profit,
Final Accounts, Profitability Ratios, Cash Flow Statement, etc., which are majorly implied to
analyse the current position of company in competitive market (Agag and El-Masry, 2016).
In this project, Gatsby Grange as being the part for small chain of Boutique situated at United
Kingdom and Northern Ireland. This project calculates, understands and describes benefits
and limitations for accounting ratios of consecutive years that are 2018 and 2019.
MAIN BODY
1. Analysing and evaluating financial management for decisions of cost and revenue
with various methods and techniques
(A). Calculate accounting ratios for the two consecutive years of 2018 and 2019
through liquidity and profitability proportion
The calculation of accounting ratios that has been performed for the two consecutive
years of 2018 and 2019 is as follows:-
Financial Statements for Gatsby Grange