The Hospitality Operational Management Calculator is a collection of equations used for income reports, business ratios and accounting sheets. This is aimed to help hospitality businesses including restaurant and hotel management.  The calculators are in the following sections.

Accounting and Balance Sheet

• Accounting Profit- Accounting Profit is an income distributed to the firm in a profitable market production process (business).
• Accounting (Assets)- This equation computes the value of assets (current and fixed) of a company.
• Owners Equity - Owner's equity is viewed as a residual claim on the business assets because liabilities have a higher claim. Owner's equity can also be viewed (along with liabilities) as a source of the business assets.
• Accounting (Liabilities)- Liabilities are equal to the Assets minus the Shareholders Equity. Liabilities are basically the company's legal debts or obligations that arise during the course of business operations e.g. loans,mortgages, etc.
• Assets (Accounting Eq. Variation)- Examples include cash, investments, accounts receivable, inventory, supplies, land, buildings, equipment, and vehicles.
• Return on Investment (ROI)- The ROI equation is used to measure the benefits of a particular investment or to compare the performance or benefits across several other investments. It is also known as the rate of return.
• Variance (Cash) - In budgeting (or management accounting in general), a variance is the difference between a budgeted, planned or standard cost and the actual amount incurred/sold.
• Percentage  of Cash Variance- This equation shows the percentage of variance in relation to cash.
• Percent Cash Variance v2- This equation shows the percentage of variance in relation to cash. This is a variation.

The Income Statement:

• Accounting Profit- Accounting Profit is an income distributed to the firm in a profitable market production process (business).
• Return on Investment (ROI)- The ROI equation is used to measure the benefits of a particular investment or to compare the performance or benefits across several other investments. It is also known as the rate of return.
• Food Cost % for a Hotel- This equation computes the percentage of food cost for a hotel using the food sales over the total revenue.
• Food Cost % for a Restaurant- This equation computes the percentage of food cost for a restaurant using the food costs over the food sales.
• Operating Profit Margin- The Operating Profit Margin is the percentage earned on sales before adjusting for nonrecurring items, interest, and taxes. 
• Specific Expense %- This equation shows the relation of specific expense over total expene.
• Variance (Sales)- In budgeting (or management accounting in general), a variance is the difference between a budgeted, planned or standard cost and the actual amount incurred/sold.
• Percentage Sales Variance- This equation shows the percentage of variance in relation to sales.
• Percentage Sales Variance v2 - This equation shows the percentage of variance in relation to sales. This is a variation.
• Variance (Expense)- In budgeting (or management accounting in general), a variance is the difference between a budgeted, planned or standard cost and the actual amount incurred/sold.
• Percentage Expense Variance - This equation shows the percentage of variance in relation to expense.
• Percentage Expense Variance v2- This equation shows the percentage of variance in relation to expense. This is a variation.
• Variance (Net Income) - In budgeting (or management accounting in general), a variance is the difference between a budgeted, planned or standard cost and the actual amount incurred/sold.
• Percentage Net Income Variance - This equation shows the percentage of variance in relation to net income.
• Percentage Net Income Variance (v2) - This equation shows the percentage of variance in relation to net income as a function of the raw variance (V) in Net Income between two periods and the total net income (NL) from the earlier period.

Statement of Cash Flows

• Variance (Investing Activities) - In budgeting (or management accounting in general), a variance is the difference between a budgeted, planned or standard cost and the actual amount incurred/sold.
• Percentage Investing Activities Variance - This equation shows the percentage of variance in relation to investing activities.
• Percentage Investing Activities Variance v2- This equation shows the percentage of variance in relation to investing activities. This is a variation.
• Free Cash Flow- This equation shows how to compute free cash flow. Free cash flow is the net change in cash generated by the operations of a business during a reporting period, minus cash outlays for working capital, capital expenditures, and dividends during the same period. This is a strong indicator of the ability of an entity to remain in business.

Ratio Analysis:

• Asset Turnover- The Asset turnover equation is used to evaluate how well a company is utilizing its assets to produce revenue.
• Average Daily Rate (ADR) - The Average Daily Rate computes how much rent should be charged to customers over a period of time.
• Average Sales per Guest (Check Average) - The average sales per guest is the total number of sales over the number of guests served.
• Beverage Available for Sale- This equation uses the beginning beverage inventory and the related purchases made to acquire/produce the beverage for sale.
• Beverage Cost - Using the Cost of Beverage Sold over the Beverage Sales, this equation computes the percentage of the beverage cost.
• Beverage Inventory Turnover Ratio - This equation computes for the Beverage Inventory Turnover Ratio which is a ratio that shows how many times a company's beverage inventory is sold and replaced over a period.
• Cash Flow from Operations to Currrent Liabilities Ratio (CFOCL) - CFOCL stands for Cash Flow from Operations to Current Liabilities Ratio. This equation measures the ability to pay current debts from operating cash flows.
• Cost of Beverage Sold - This equation shows how to calculate the cost of beverage sold though inventory, transfers and purchases.
• Cost of Food Consumed- This equation shows how to calculate the cost of food consumed though inventory and purchases.
• Cost of Food Sold - The Cost of Food Sold includes/takes into account employee meals and transfers alongside inventory and purchases (raw materials).
• Cost per Occupied Room- This equation finds the cost per occupied room using the cost under examination over the number of rooms occupied.
• Current Ratio- The current ratio is a financial ratio that measures whether or not a firm has enough resources to pay its debts over the next 12 months. It compares a firm's current assets to its current liabilities.
• Debt Ratio- The debt ratio is a solvency ratio used along with other financial leverage ratios to measure a company's total liabilities as a percentage of its total assets.  
• Debt to Equity Ratio - The Debt to Equity Ratio measures how a company is leveraging its debt against the resources of its owners.
• Dividend Payout Ratio - The dividend payout ratio is a fraction of the net income amount paid to stockholders of a company. 
• Dividend Yield Ratio - The Dividend Yield Ratio is a financial ratio that shows how much a company pays out in dividends each year relative to its share price.
• Earnings Per Share (EPS) - Earnings per share denotes the company's profit that is given to one share of stock. 
• Fixed Asset (Property and Equipment) Turnover Ratio - Fixed-asset turnover is the ratio of sales (on the profit and loss account) to the value of fixed assets (on the balance sheet). 
• Food Available for Sale - The Food Available for Sale is the beginning food inventory over the amount of purchases related to produce food.
• Food Cost % - Using the Cost of Food Sold over the Food Sales, this equation computes the percentage of the food cost.
• Food Inventory Turnover Ratio - Inventory turnover is the ratio of cost of food sold by a business to its average food inventory during a given accounting period.
• General Percent- A percent is a ratio whose second term is 100. Percent means parts per hundred.
• Gross Operating Profit Margin (Operating Efficiency Ratio)  - A ratio that shows the efficiency of a company's management by comparing operatingexpense to net sales.
• Labor Cost % - Labor cost percentage is a financial term used to describe a business' labor costs relative to its overall revenue. 
• Net Working Capital- The Net Working Capital  equation is used to determine the availability of a company's liquid assets by subtracting its current liabilities. 
• Occupancy %" - In real estate, occupancy ratio is the number of units in a building that have been rented out as compared to the total number of units in the building.
• Operating Cash Flows to Total Liabilities Ratio - This coverage ratio compares a company's operating cash flow to its total debt, which, for purposes of this ratio, is defined as the sum of short-term borrowings, the current portion of long-term debt and long-term debt. 
• Operating Profit Margin - The Operating Profit Margin is the percentage earned on sales before adjusting for nonrecurring items, interest, and taxes. 
• Quick Ratio aka Acid Test - A liquidity ratio that measures the ability to pay short-term liabilities with cash and assets quickly convertible to cash.
• Quick Ratio aka Acid Test v2 - A liquidity ratio that measures the ability to pay short-term liabilities with cash and assets quickly convertible to cash. This is a variation.
• Price to Earnings Ratio (P/E) - The Price to Earnings ratio (P/E) is used as a quick calculation for how a company's stock is perceived by the market to be worth relative to the company's earnings.
• Return on Assets Ratio - The return on assets ratio, often called the return on total assets, is a profitability ratio that measures the net income produced by total assets during a period by comparing net income to the average total assets
• Return on Equity (ROE)- The Return on Equity (ROE) is the amount of net income returned as a percentage of shareholders equity.
• Revenue per Available Customer (RevPAC)- RevPAC, as a measure of performance, embodies a shift in perspective from an "asset play" based on hotel properties and rooms to a focus on leveraging customer equity for shareholder wealth.
• Revenue Per Available Room (RevPAR)- RevPAR, or revenue per available room, is a performance metric in the hotel industry that is calculated by dividing a hotel's total guestroom revenue by the room count and the number of days in the period being measured.
• Revenue Per Available Room (RevPAR) v2- RevPAR, or revenue per available room, is a performance metric in the hotel industry that is calculated by dividing a hotel's total guestroom revenue by the room count and the number of days in the period being measured. This is a variation.
• Seat Turnover- This equation computes seat turnover which is the number of times a seat is used by different individuals during a particular meal period or time.
• Server-to-Self-Serve Gests Ratio- This equation computes the ratio of servers to self-served guests. This can be applied to buffets or in catering.
• Server-to-Served Guests Ratio- This equation computes the number of servers required to serve guests. This can be applied to sit down restaurants or cafes.
• Solvency Ratio- The solvency ratio is only one of the metrics used to determine whether a company can stay solvent. 
• Times Interest Earned Ratio- Times Interest Earned Ratio is a metric used to measure a company's ability to meet its debt obligations. It is calculated by taking a company's earnings before interest and taxes (EBIT) and dividing it by the total interest payable on bonds and other contractual debt.
• White Rice-to-Water Cooking Ratio- The needed water ratio for cooking white rice.
• Wild Rice-to-Water Cooking Ratio- The needed water ratio for cooking wild rice.

Food and Beverage Pricing

• Profit- Profit is a firm's total revenue minus its total cost.
• Total Revenue- The Total Revenue is the amount paid by buyers and received by sellers. This is calculated by multiplying the total number of a good sold to it's price.
• Food Cost %- Using the Cost of Food Sold over the Food Sales, this equation computes the percentage of the food cost.
• Item Food Cost %- Using the Item Food Cost over the Selling Price, this equation computes the percentage of the item food cost.
• Food Selling Price- This equation computes the selling price of a food item denoted by the food cost over its food cost percentage.
• Food Selling Price v2- The Food Pricing Factor is why the price of a food item tends to approach the cost of producing it.
• Food Item Contribution Margin- This equation solves for the Food Item Contribution Margin which a cost accounting concept that allows a company to determine the profitability of food items.
• Total Food Cost- This equation solves for the total cost of food. 
• Total Contribution Margin- Contribution margin is a product’s price minus all associated variable costs, resulting in the incremental profit earned for each unit sold. 
• Average Total Food Sales- The equation computes for the Average Total Food Sales by taking the total food sales over the number of menu items.
• Weighted Average Selling Price- This equation is calculated by taking the ave. total sales over the ave. number sold.
• Average Total Food Cost - This equation takes the amount of Total Food Cost over a number of menu items computing the average.
• Weighted Average Selling Price- This equations finds the weighted average of the cost of food items.
• Average Total Contribution Margin- This equation finds the total contribution margin over a period of time.
• Weighted Average Food Cost %- This equations finds the weighted average of food cost percentage. 
• Weighted Average Item Contribution Margin- This equations finds the weighted average of the item contribution margin.
• Average Number Sold- This equation finds the number sold (item/product/service) over a period of time.

Revenue Management for Hotels

• Average Cost per Room- The Average Cost per Room computes how much cost (expense) is generated on a per room basis over a period of time.
• Estimated Rooms Department Revenues- This equation estimates the revenue generated from department rooms. Revenue is the income that a company receives from its normal business activities.
• Estimated Room Expenses- This equation estimates expenses incurred by a room.
• Average Daily Rate (ADR)- The Average Daily Rate computes how much rent should be charged to customers over a period of time.
• Before-Tax Net Income- Income before taxes is the total value of a company's earnings before account for income tax
• Net ADR Yield- Net ADR Yield is the rate (ADR) actually received by a hotel after subtracting the cost of the fees and assessments associated with a room sale.
• Revenue Per Available Room (RevPAR) v2 - RevPAR, or revenue per available room, is a performance metric in the hotel industry that is calculated by dividing a hotel's total guestroom revenue by the room count and the number of days in the period being measured.
• Total Non-Operating Expenses- This equation takes the total Non-Operating Expenses which are the expenses incurred by activities not relating to the core operations of the business.
• Total Undistributed Operating Expenses- Finds the total expenses related to undistributed operation in a business.
• Total Operated Departments Income Excluding Rooms- This equation computes all the income generated from departments in a business (mainly hotel) that excludes income generated from renting or leasing rooms.
• Occupancy % -  Rooms sold over the rooms available.
• Occupancy % (v2) - Rooms sold and Comp Rooms occupied over the total rooms in the hotel.
• Occupancy % (v3) - Percent occupied using the number of units in a building that have been rented out as compared to the total number of units in the building minus the rooms that are out of order (OOO).
• Occupancy % (v4)  - Percent occupied using the number of units in a building that have been rented out as compared to the total number of units in the building minus the rooms that are on change rooms (OCR).
• Operated Department Income (Rooms)- The amount of profit realized from a business's operations after taking out operating expenses - such as cost of goods sold (COGS) or wages - and depreciation. 
• Operated Department Income for Rooms(a variation) - The amount of profit realized from a business's operations after taking out operating expenses - such as cost of goods sold (COGS) or wages - and depreciation. 
• Net Income for Hotels- A hotel's total earnings (or profit). Net income is calculated by taking revenues and adjusting for the cost of doing business, depreciation, interest, taxes and other expenses. 
• Number of Rooms to be Sold in the Year- As the name implies, this equation finds the number of rooms sold in a year.
• Hotel’s Target Net Income- A hotel's target total earnings (or profit). Net income is calculated by taking revenues and adjusting for the cost of doing business, depreciation, interest, taxes and other expenses. 
• Hotel’s Required ADR- This equation finds what ADR a hotel must have. A metric widely used in the hospitality industry to indicate the average realized room rental per day.
• GOP-PAR- GOPPAR is a formula of taking the GOP at the end of the month or season and applying it across all days.
• Flow-Through- A legal business entity that passes income on to the owners and/or investors. Flow-through entities are a common device used to limit taxation by avoiding double taxation. Only the investors/owners are taxed on revenues, not the entity itself.
• Yield- The income return on an investment. This refers to the interest or dividends received from a security and is usually expressed annually as a percentage based on the investment's cost, its current market value or its face value

Managerial Accounting for Costs:

• Profit - Profit is a firm's total revenue minus its total cost.
• Revenue - The amount of money that a company actually receives during a specific period, including discounts and deductions for returned merchandise.
• Total Variable Cost - Total variable cost is the opportunity cost incurred in the short-run production that depends on the quantity of output.
• Variable Cost per Guest (VC/Guest) - This equation calculates the variable cost on a per guest basis. 
• Variable Cost per Guest (VC/Guest) v2 - This equation calculates the variable cost on a per guest basis. This is a variation.
• Total Mixed Cost - A mixed cost is a cost that contains both a fixed component and a variable component. 
• Total Mixed Cost v2 - A mixed cost is a cost that contains both a fixed component and a variable component. This is a variation.
• Overhead Allocation per Profit Center - This equation computes overhead allocation for each profit center in operation of a business.
• Contribution Margin - The contribution margin equation determines the sales amount left over after adjusting the variable costs of selling additional products.
• Contribution Margin per Guest (CM/guest) - This equation calculates the contribution margin for each guest present in a business. 
• Contribution Margin Percent (CM%) -  This equation calculates the contribution margin for percentage in a business. The contribution margin is a cost accounting concept that allows a company to determine the profitability of individual products. 
• Break-Even Point in Sales Dollars - In accounting, the break-even point refers to the revenues needed to cover a company's total amount of fixed and variable expenses during a specified period of time. 
• Fixed Cost - A cost that does not change with an increase or decrease in the amount of goods or services produced. 
• Break-Even Point in Guests Served - In accounting, the break-even point refers to the revenues needed to cover a company's total amount of fixed and variable expenses during a specified period of time.
• Sales Dollars to Achieve Desired After-Tax Profit - The sales dollars desired after-tax profit can be attained by adding the fixed costs to the before tax-profit and dividing this by the company's contribution margin ratio.
• Before-Tax Profit - A profitability measure that looks at a company's profits before the company has to pay corporate income tax.
• Number of Guests to Achieve Desired After-Tax Profit - The number of guests to achieve after-tax profit can be attained by adding the fixed costs to the before tax-profit and dividing this by the company's contribution margin per guest.
• Margin of Safety - A principle of investing in which an investor only purchases securities when the market price is significantly below its intrinsic value. 
• Margin of Safety Percentage - This equation finds the percentage of margin of safety.
• Margin of Safety Percentage v2 - This equation finds the percentage of margin of safety. This is a variation.

Forecasting in the Hospitality Industry:

• Average Sales per Guest (Check Average) - The average sales per guest is the total number of sales over the number of guests served.
• Variance (Sales) - Variance is the difference between a budgeted, planned or standard cost and the actual amount incurred/sold. Variances can be computed for both costs and revenues.
• Percentage Sales Variance v2 - This equation shows the percentage of variance in relation to sales.
• Percentage Sales Variance v3 - This equation shows the percentage of variance in relation to sales. This is a variation.
• Sales Forecast - Sales forecasting is the process of a company predicting what its future sales will be.
• Sales Forecast v2 - Sales forecasting is the process of a company predicting what its future sales will be. This is a variation.
• Guest Count Forecast - Guest Count Forecasting is the process of a company predicting what its future guest count will be. 
• Guest Count Forecast v2 - Guest Count Forecasting is the process of a company predicting what its future guest count will be. This is a variation. 
• Sales per Guest Forecast - Sales per Guest Forecasting is the process of a company predicting what its future Sales per Guest will be. 
• Average Sales per Guest Forecast - Average Sales per Guest Forecasting is the process of a company predicting what its future Average Sales per Guest will be. 
• Occupancy % (v1, v2 etc.) - In real estate, occupancy ratio is the number of units in a building that have been rented out as compared to the total number of units in the building.
• Occupancy Forecast % - Occupancy Forecast Ratio finds the percentage of the company's predicted occupancy forecast. In real estate, occupancy ratio is the number of units in a building that have been rented out as compared to the total number of units in the building. 
• Net Availability of Rooms - This equation finds what rooms are suitable/ready for use at hand. 
• Rooms Sold or Reserved - This equation finds which rooms have been sold or reserved by tenants.
• Total Forecast Sold or Reserved after Adjustments - This equation finds the number of forecasts sold or reserved.
• Occupancy Forecast - Occupancy Forecasting is the process of a company predicting what its occupancy will be.

Budgeting and Internal Controls:

• Budgeted Profit - Budgeted profit is the difference between estimated revenues and estimated expenses as determined by the different budgets a company prepares, i.e. sales budget, production budget, selling and administrative expense budget, etc.
• Sales Forecast v2 - Sales forecasting is the process of a company predicting what its future sales will be. This forecast is done for a particular period of a time in the near future, usually the next fiscal year.
• Selling Price Forecast (Check Average) - Selling Price Forecast is the process of a company predicting what its future Selling Price will be.
• Forecasted Cost - Forecasted Cost computes the prediction of a company's desired future cost. 
• Cost per Cover Forecast - Cost per Cover Forecast is the process of a company predicting what its future Cost per Cover will be. 
• Forecasted Labor Cost - Forecasted Labor Cost computes the prediction of a company's desired future labor cost. 
• Budgeted Payroll Allocation - The Budgeted Payroll Allocation computes the portion of a business' resource that it must distribute to its employees for a set period of time or on a given date. 
• Budgeted Payroll - The Budgeted Payroll is the sum total of all compensation that a business must pay to its employees for a set period of time or on a given date. 
• Budgeted Hourly Payroll -The Budgeted Payroll is the sum total of all compensation that a business must pay to its employees based on an hourly rate.
• Variance (Expense) - The difference between a budgeted, planned or standard cost and the actual amount incurred/sold.
• Percentage Expense Variance v2 - This equation shows the percentage of variance in relation to expense.
• Percentage Cash Variance v3 - This equation shows the percentage of variance in relation to cash. This is a variation.
• Forecasted Costs - Forecasted Costs computes the prediction of a company's desired future costs. 

Capital Investment, Leasing and Taxation:

• Total Investment Value - The value of property to a particular investor,aside from the property's general market value.
• Future Value v2 - Future Value (FV) is a formula used in Finance to calculate the value of a cash flow at a later date than originally received.
• Present Value - This equation computes the present value of money planned or estimated in the future that has been discounted to reflect its current value as if it existed today.
• Return on Investment (ROI) - The ROI equation is used to measure the benefits of a particular investment or to compare the performance or benefits across several other investments. It is also known as the rate of return.
• Savings Rate of Return - The gain or loss on a savings investment over a specified period, expressed as annual savings over the capital investment.
• Payback Period - This equation is used to quickly determine the length of time it will take to recoup the initial amount invested on a project or investment.
• Cap Rate % (v1 and v2) - A rate of return on a real estate investment property based on the expected income that the property will generate. Capitalization rate is used to estimate the investor's potential return on his or her investment.
• Property Value Estimate - Property value is an estimate of what a home or a piece of land is actually worth.
• Debt Coverage Ratio - The debt coverage ratio is used in banking to determine a companies ability to generate enough income in its operations to cover the expense of a debt. On a broader level, it may also be used internally by a company for the same reason.

~Resources~

Formula PDF List : Click Here

Guide for Completing Hotel/Motel Income and Expense Forms: Click Here

• Dopson, Lea R., and David K. Hayes. Managerial Accounting for the Hospitality Industry. Hoboken, NJ: Wiley, 2009. Print.
• Miller, Jack E. Student Workbook Food and Beverage Cost Control, Third Edition. Hoboken, NJ: Wiley, 2005. Print.