Hotel Balance Sheet
This Hotel Balance Sheet Info Guide can help you to improve your understanding of your hotel's Balance Sheet.
Your Balance Sheet is a statement of all the assets and liabilities of the business, and how the business is financed, at a certain point in time (eg the end of a month or a year).
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Your Balance Sheet can tell you:
- How efficient you are in managing working capital (ie turning over stock, collecting money owed to the business, securing credit terms from suppliers).
- How capable the business is at paying its liabilities as they become due for payment.
- Your gearing, ie the borrowings relative to the money that you/shareholders have invested in the business.
- The investment return you are getting from the business's profits (return on capital employed).
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Benefits of a Balance Sheet in managing a hotel business (PowerPoint Presentation)
To view Slide Show, select Slide Show from the PowerPoint menu bar, and then choose From Beginning.
Click the Next button to navigate the slides:
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Your Balance Sheet, together with Balance Sheet KPIs, can give you a comprehensive understanding of your business’s financial position and where financial stress may be building up.
To find out more about Balance Sheet KPIs, see our Guide to Key Performance Indicators for the Balance Sheet.
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