Ratios - variance and report

• Tourism
• Foundation Degree

Ratios - variance and report

Task 3 

MFP Assignment 1 

1. Calculate ratios 

2. Definition of ratios 

3.a Variance 

3. b Report 

4. Break even analysis 

Due 10.3.25

Variance 

3 (a) Carry out a numerical comparison of the results for the two years. 

Students should show a percentage increase/decrease and add to the table in appendix 1. (8 marks)

Report 

3 (b) Write a report to the management of the hotel and interpret the results for 2022 and 2023 and comment on the performance of the business and include advice and recommendations about areas of concern within the hotel, using the results of your ratio analysis as evidence. (40 marks)

Structure of report - 40 marks 

To: 

From: 

Date: 

Introduction, clear headings (2 marks)

Interpretation of & Commentary on the results for

(Profitability ratios – 3* 2marks = 6)

(Performance ratios – 3*2marks = 6)

(Liquidity ratios – 2 * 2marks = 4)

Advice and recommendations about areas of concern within the business using the results of your ratio analysis as evidence.

(Profitability 5*2marks = 10) 

(Performance – 3*2marks = 6) 

(Liquidity – 2 * 2marks = 4)

Conclusion (2 marks)

Ratio practice 

Variance Practice 

Calculation 

Year 2 - Year 1 = ? / Year 1 x 100