In Week 3, students are introduced to analytical tools used to interpret financial statements within the context of hospitality businesses. The focus is on understanding how numbers can tell the operational story of an establishment—revealing trends, inefficiencies, and opportunities for improvement.
Students explore the two primary techniques of financial statement analysis:
Horizontal Analysis, which compares financial data across different periods (e.g., Year 1 vs. Year 2) to track growth or decline
Vertical Analysis, which examines financial data as percentages of a base figure (e.g., cost as a % of revenue) to assess cost structure and profitability
