Foundation Degree Hospitality Management Essay Example | Topics and Well Written Essays - 750 words

Foundation Degree Hospitality Management - Essay ExampleIn simple definition, limit analysis refers to the process by which the figures are quantified in order to understand business public presentation in terms of financial and operation outal management. Ratios analysis can be conducted to compare trends in the inter stratum performance of the organization. It can also be done to compare financial performance of several companies in the same industry. Similarly, the result of the analysis is comparable with that of the industry to which the company belongs. There are five important ratios that are applicable in this scenario. These include scratchability ratios, sales ratios, liquidity ratios, efficiency ratios, and financial ratios. establish on this brief introduction, ratio analysis of the Brown Sugar Cafe will follow in the next part... Identify appropriate techniques used to assess business performance, analysing data by applying selected techniques. Internal verifier ..date.. RATIO ANALYSIS Case of the Brown Sugar Cafe The assessment of financial and operational performance of an organization can be accomplished through the use of ratio analysis. This is achieved by evaluating the relationship of diametric figures generated from the companys financial statements. A number of performance indicators are derived from these figures. In simple definition, ration analysis refers to the process by which the figures are quantified in order to understand business performance in terms of financial and operational management. Ratios analysis can be conducted to compare trends in the inter year performance of the organization. It can also be done to compare financial performance of several companies in the same industry. Similarly, the result of the analysis is comparable with that of the industry to which the company belongs. There are five main ratios that are applicable in this scenario. These include Profitability ratios, sales ratios, liquidity ratios , efficiency ratios, and financial ratios. ground on this brief introduction, ratio analysis of the Brown Sugar Cafe will follow in the next part The Brown Sugar Cafe Ratio Analysis 1. Gross Profit border (%) Gross profit margin is a profitability ratio that helps in examining the ability of the company to crack costs associated with the acquisition of raw materials (Ratios Workbook, 2013). It is calculated using the formula below Gross Profit % = (Gross Profit/ Sales) x 100 Using Brown Sugar Cafe