Revenue Per Occupied Room (RevPOR).

Revenue per occupied room (RevPOR) is a financial ratio often used in the hospitality industry to measure a property’s revenue performance. It is calculated by dividing a property’s total revenue by the number of rooms occupied during a given period of time. RevPOR is a helpful metric for hospitality property owners and operators because it … Read more

Understanding Accounting Ratios.

Accounting ratios are mathematical relationships derived from an entity’s financial statements. The purpose of using accounting ratios is to give users of financial statements insights into an entity’s relative financial health and performance. Financial ratios can be classified in a number of ways, but are commonly grouped by the type of information they provide. For … Read more

Trailing Price-To-Earnings (Trailing P/E) Definition.

The trailing price-to-earnings ratio (trailing P/E) is a valuation ratio of a company’s current share price compared to its per-share earnings over the last 12 months. The trailing P/E is a popular valuation metric because it is easy to calculate and covers a longer time period than other P/E ratios, such as the forward P/E … Read more

Understanding Value at Risk (VaR) and How It’s Computed.

Value at risk (VaR) is a measure of the potential loss that a portfolio may incur over a specified time period, under normal market conditions. It is typically expressed as a percentage of the portfolio’s value, and is used by investors to help them assess and manage the risks associated with their investments. There are … Read more

Long-Term Debt to Capitalization Ratio.

The long-term debt to capitalization ratio is a financial ratio that measures the portion of a company’s capital that is financed by long-term debt. This ratio is also sometimes referred to as the debt-to-equity ratio. The long-term debt to capitalization ratio is calculated by dividing a company’s long-term debt by its total capitalization. Total capitalization … Read more

What the Loan-to-Cost Ratio (LTC) Tells Us.

The loan-to-cost ratio (LTC) is a financial ratio that tells us the percentage of the project cost that is being financed by a loan. In other words, it is a measure of the leverage being used in the project. A higher LTC ratio means that more of the project cost is being financed by debt, … Read more

ROCE: Ratio, Interpretation, and Example.

. What is Return on Capital Employed (ROCE)? How do you interpret it? What is an example of how it is used? What does negative ROCE mean? ROCE is a financial ratio that measures the profitability of a company. It is calculated by dividing the company’s operating profit by its capital employed. A high ROCE … Read more

Free Cash Flow Per Share.

The free cash flow per share ratio is a financial ratio that measures the amount of free cash flow per share of common stock. Free cash flow is the cash that a company generates from its operations after it has paid for its operating expenses and capital expenditures. The free cash flow per share ratio … Read more

Retention Ratio Definition.

The retention ratio is a financial ratio that measures the percentage of earnings retained by a company after paying out dividends. The ratio is calculated by dividing a company’s earnings after taxes by the amount of dividends paid out. The retention ratio is a important for investors to assess a company’s financial health and dividend … Read more