Profit and Loss statement is a flow statement that measures the performance of an organization over a period of time. Some key points to note in a profit and loss (P&L) statement:
- It is an accounting statement: That means accountants can change it at their will,
- It is for a period: That means whenever you see any P&L, it would be for (let’s say) 1st Jan 2011 to 31st Dec 2011 or 1st Apr 2011 to 31st March 2012,
- P&L is like a Pipe! Money (In the form of revenues) flows into this pipe and Money (In the form of costs or expenses) flows out of this pipe!
- Conferences and Events Revenues,
So let's take a step back and run through the definition of RevPAR, GOPPAR and NOPPAR:
REVPAR = (Rooms) Revenue / (per) Available Rooms, or, ADR (average daily rate) x Occupancy %
GOPPAR = GOP (gross operating profit) / (per) Available Rooms
NOPPAR = NOP (net operating profit) / (per) Available Rooms
If you are not familiar with these terms, we would recommend for you to either setup a meeting with your Financial Controller, or ask your training manager, to prepare a training about "Financial Acumen - for non financial people".
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