Management, although generally more interested in the income statement and related department operations statements, will find balance sheets useful for conveying financial information to creditors and investors. In addition, management must determine if the balance sheet reflects to the best extent possible the financial position of the hospitality operation. For example, many long-term loans specify a required current ratio (which is current assets divided by current liabilities).
Failure to meet the requirement may result in all long-term debt being reclassified as current and thus due immediately. Since few operations could raise large sums of cash quickly, bankruptcy could result. Therefore, management must carefully review the balance sheet to determine that the operation is in compliance. (2016 AHLEI, CHA on-line review material, Financial Management, page 3).
I purposely quote the text above to remind General Manager, FC, DoSM and hospitality Department head to take the advantage of a balance sheet to pursue your request of capital expenditure.
if you haven't get a chance to learn about the balance sheet deep enough, now is the best time for it, and you may fight for your CAPEX request and win it !
Wiwin Suyasa CHE.,CHA
Appointed Partner of AHLEI for Indonesia
https://www.linkedin.com/pulse/you-frustrated-enough-because-your-capex-request-turn-wiwin?trk=portfolio_article-card_title
Comments