Question

Financial Ratios – Provide the Equation for each of the following:

1. COGS (as a $)

2. Sales per Square Feet

3. Controllable Profit (as a $ and as a %)

4. Prime Cost (as a $ and as a percentage %)

5. Food Costs (as a %)

6. Beverage Costs (as a %)

7. Net Profit Before Taxes (as a percentage %)

8. Gross Profit (as a $ and percentage %)

9. Total Occupancy Cost ($ and as a %)

10. Sales per Square Foot

11. Sales per Seat

12. Multiplier

13. Mark-Up % (% Mark-up)

14. Profit Margin

15. Cash Profit

Answer 1

• COGS (as a $) = Beginning Inventory + Purchases during the period – Ending Inventory
• Sales per Square Feet = Total sales/ area in square feet
• Controllable Profit (as a $ and as a %)= Gross Profit- COGS- Direct Cost, Controllable profit/ Gross profit *100
• Prime Cost (as a $ and as a percentage %)= Raw Material+ Direct Labor, (Raw material + Direct Labor)/ Total cost
• Food Costs (as a %)= (Actual Cost of Goods Sold / Food Sales) x 100
• Beverage Costs (as a %)= (Actual Cost of Goods Sold / Beverage Sales) x 100
• Net Profit Before Taxes (as a percentage %)= (Operating profit- Depreciation)/Total Sales
• Gross Profit (as a $ and percentage %)= Sales- COGS,   (Gross profit/Sales)*100
• Total Occupancy Cost ($ and as a %)= All gross rental cost, (Gross rental cost/ Sales)*100
• Sales per Square Foot= Sales/ saleable area in squarefoot
• Sales per Seat= Sales/ No of seats
• Mark-Up % (% Mark-up)= (Gross Profit/ Cost of sales)*100
• Profit Margin= (Profit/Revenue)*100
• Cash Profit= Net profit after tax+ non-cash expenditure