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Ratio Analysis for the Hospitality Industry- a Cross Sector Compa
Journal of Hospitality Financial Management
The Professional Refereed Journal of the Association of Hospitality Financial Management Educators
Volume 13 | Issue 1 Article 26

1-1-2005

Ratio Analysis for the Hospitality Industry: A cross Sector Comparison of Financial Trends in the Lodging, Restaurant, Airline and Amusement Sectors
Woo Gon Kim Baker Ayoun

Recommended Citation
Kim, Woo Gon and Ayoun, Baker (2005) "Ratio Analysis for the Hospitality Industry: A cross Sector Comparison of Financial Trends in the Lodging, Restaurant, Airline and Amusement Sectors ," Journal of Hospitality Financial Management: Vol. 13: Iss. 1, Article 26. Available at: http://scholarworks.umass.edu/jhfm/vol13/iss1/26

This Refereed Article is brought to you for free and open access by ScholarWorks@UMass Amherst. It has been accepted for inclusion in Journal of Hospitality Financial Management by an authorized administrator of ScholarWorks@UMass Amherst. For more information, please contact scholarworks@library.umass.edu.

Ratio Analysis for the Hospitality Industry: A cross Sector Comparison of Financial Trends in the Lodging, Restaurant, Airline and Amusement Sectors
RATIO ANALYSIS FOR THE HOSPITALITY INDUSTRY: A CROSS SECTOR COMPARISON OF FINANCIAL TRENDS IN THE LODGING, RESTAURANT, AIRLINE AND AMUSEMENT SECTORS Woo Gon Kim and Baker Ayoun ABSTRACT
This study uses ratio analysis to examine salient financial trends within four major sectors of the hospitality industry for the 1997-2001 period – namely lodging, restaurants, airlines and the amusement sectors. Cross-sectional analysis results indicate that at least for the test period, eight out of thirteen financial ratios were statistically different across the four hospitality segments. As such, financial trends and cross sectional anomalies within the examined hospitality industry segments are better understood.

Introduction
Evidence exists that since the late 1800’s, ratio analysis has been widely used in the


References: Beaver, H. (1968). Alternative financial ratios as predictors of failure. Accounting Review, 43(1), 113-122. Gardiner,(19995) Damitio, Deninngton, & Schmidgall, .R.(1995) Author Unknown (1993) Hitchings (1999) Kristy (1994) Yallapragada , & Breaux (1989) Rushinek & Rushinek (1995) Voulgaris, Doumpos & Zopounidis (2000) Thomas & Evanson (1987) Horrigan (1966) Inventory turnover Rushinek & Rushinek (1995) Thomas & Evanson (1987) Singh & Schmidgal (2002) Singh &Schmidgal (2002) O’Connor (1973) Gunduz & Tatoglu (2003) Gunduz & Tatoglu (2003) Block (1995) Jensen , Johnson & Mercer (1997) Market to book value
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