Name: Julie Ann Monterde Section: BSA201

Occupancy ratio for hoteling industry

 it is used by those within the hotel industry to assess the performance of a hotel. As a
metric, it is concerned with the percentage of a hotel that is occupied and can be used
alongside other KPI’s, such as ADR (average daily rate) and RevPAR (revenue per
available room) as part of a revenue management strategy. It refers to the number of
occupied rental units at a given time, compared to the total number of available rental
units at that time. It is to aim a high occupancy rate because this indicates that space is
being used efficiently.

How the Occupancy Ratio Is Calculated

Occupancy Rate = Number of Occupied Rooms / Total Number of Available Rooms

Example: If your hotel has 220 rooms and 210 of the rooms are occupied:

210 / 220 = 0.95 = 95 percent occupancy rate.

Capital adequacy ratio for banks

 The capital adequacy ratio (CAR), also known as capital to risk-weighted assets ratio,

measures a bank's financial strength by using its capital and assets. It is used to protect
depositors and promote the stability and efficiency of financial systems around the world.

How the Capital Adequacy Ratio Is Calculated

=risk-weighted assets/bank’s capital.

Tier-1 Capital
 Tier-1 capital, or core capital, is comprised of equity capital, ordinary share capital,
intangible assets, and audited revenue reserves, or what the bank has stored to help it
through typical risky transactions, such as trading, investing, and lending. Tier-one
capital is used to absorb losses and does not require a bank to cease operations.

Tier-2 Capital
 Tier-2 capital comprises unaudited retained earnings, unaudited reserves, and general loss
reserves. This capital absorbs losses in the event of a company winding up or liquidating.
Tier-2 capital is seen as less secure than Tier-1.

The two capital tiers are added together and divided by risk-weighted assets to calculate a
bank's capital adequacy ratio. Risk-weighted assets are calculated by looking at a bank's
loans, evaluating the risk, and then assigning a weight.
Reserve Requirement Ratio

 The reserve requirement ratio is the portion of reservable liabilities that commercial
banks must hold onto, rather than lend out or invest.

How the Reserve Ratio Is Calculated

Reserve Requirement=Deposits × Reserve Ratio

As a simplistic example, assume the Federal Reserve determined the reserve ratio to be 11%.
This means if a bank has deposits of $1 billion, it is required to have $110 million on reserve
($1 billion x .11 = $110 million).

Sales per square foot for companies in retail business

 sales per square foot is one of the best metrics you can use for gauging the performance
of your brick-and-mortar stores. It tells you how efficient you are with your use of space
and can give insights for improving store layout, merchandising, staff performance, and
more.

How the retail sales per square foot Is Calculated

=Selling area in square feet/total in store sales

Example: An apparel store sold $1 million worth of merchandise in its 1,800 sq. ft shop,
that store’s sales per square footage would be:
$1,000,000 / 1,800 sq. ft. = $555 per square ft.