Interpret financial data as it relates to an operation’s goals.
Selecting from the list provided, you will select and evaluate [6] performance measures used to analyze operational performance, activity, profitability, liquidity, and return on investment.
Using the food service operation of your choice, the writing will identify each selected performance measure and explain how the measure would be used to appraise performance in your operation. You will then provide a critique of what you can learn by using the selected measures and how they might affect business decisions, planning, and achieving your specific objectives [which means establishing what your objectives would be].
Each category on the list should be represented in the writing
Use the Internet and personal interviews to make comparisons to existing businesses when possible.
LIST
Operational ratios:
Gross profit Net profit Average check Spend per head Material costs %
Labor cost % Productivity Variance % Revenue per employee
Sales per seat available Seat turnover Sales per square foot
Activity ratios:
Net asset turnover Fixed asset turnover Stock turnover rate
Stock turnover period Debt turnover Average collection period
Profitability:
Return on capital employed Return on equity Gross profit margin
Net profit margin
Liquidity:
Current ratio Acid test/Quick ratio
Gearing ratios:
Debt ratio Debt-to-equity ratio Interest cover