Essential Financial Management Skills for Tourism Enterprises

2020 ◽  
pp. 147-164
Author(s):  
Seda Süer
Keyword(s):  
Financial Performance ◽  
Financial Management ◽  
Profit Maximization ◽  
Primary Objective ◽  
The Other ◽  
Management Skills ◽  
For Profit ◽  
Business Operations ◽  
Tourism Enterprises ◽  
Financial Characteristics

Financial management is crucial for tourism enterprises as well as the other enterprises that focus on obtaining and effectively utilizing the funds necessary for efficient business operations. The primary objective of an enterprise is to generate profit that is the revenues must exceed the expenses. The indisputable fact is that financial managers require the skills to make the best decision for profit maximization. Otherwise, the resources are wasted, poor decisions get made, and the financial performance of the organization suffers, as a result. The aim of this chapter is to determine the essential financial management skills for owners/managers of tourism enterprises to improve their financial performance. Therefore, essential financial management skills are identified according to the financial characteristics of tourism enterprises for financial managers to improve and develop the financial performance of the enterprise.

Benchmarking upper midwest dairy farm profitability

2020 ◽  
Vol 80 (5) ◽  
pp. 733-744
Author(s):  
Christopher A. Wolf ◽  
J. Roy Black ◽  
Mark W. Stephenson
Keyword(s):  
Financial Performance ◽  
Financial Management ◽  
Dairy Farm ◽  
Herd Size ◽  
Primary Objective ◽  
Profit Margin ◽  
Upper Midwest ◽  
Content Type ◽  
Operating Profit ◽  
Farm Profitability

PurposeThe purpose of this research is to understand US Upper Midwest dairy farm profitability performance over time and across herd size. Profitability is broken down into asset efficiency and operating profit margin. The primary objective is to determine how much information is required to accurately benchmark farm performance.Design/methodology/approachFinancial ratios to measure profitability (rate of return on assets), profit margin (operating profit margin ratio), and asset efficiency (asset turnover) were collected from Michigan State University and the University of Wisconsin business analysis programs for dairy farms from 2000 through 2016. Financial ratio patterns were examined both across time and herd size. Annual distributions were divided into quartiles and the use of one to five-year averages were used to determine accuracy of quartile rank compared to true long-run farm profitability performance.FindingsFinancial performance across large herds was more uniform than across smaller herds. Small and large herd profitability performance converged in poor years but diverged in good years. Using three or more years performance greatly improved accuracy of benchmarking profitability.Originality/valueThe data utilized are very rich in the sense of the amount of variation across years and herd size. The results have important implications for farm financial management and benchmarking farm financial performance. Farm firms should benchmark multiple years of profitability before making major management changes to alleviate deficiencies.

scholarly journals PENGELOLAAN KEUANGAN UKM BATIK DI KOTA MALANG

IQTISHODUNA ◽  
2016 ◽  
Vol 11 (2) ◽  
pp. 124-129
Author(s):  
Erna Retno Rahadjeng
Keyword(s):  
Financial Performance ◽  
Financial Management ◽  
The Other ◽  
Descriptive Research ◽  
Systematic Overview ◽  
And Control

Batik Malang commonly called by Batik Malangan is not yet as popular as Batik Jawa. Batik Malangis very beautiful batik as it has a distinctive and uniqueness among the other batik. Issues examined in thisresearch are: How is the Financial Management of UKM Batik in Malang? What are the factors used inFinancial Management of UKM Batik in Malang? The method used in this research is descriptive. Thepurpose of this descriptive research is to make a systematic overview description, factual and accurate as wellas to explain and to analyze and then draw a conclusion from the results of research on the efforts of financialmanagement and financial performance of UKM. Based on the analysis above shows that batik in Malangwhich consists of three batik ownersthey are not optimal in managing their business finances. The reportingthat is made so far is just a very basic report which only consists of income and expense of funds reportwithout any further action.For good financial management, the necessary steps to be done areto make financialplanning, financial budgeting, financial management and control. If the measure of financial management isdone correctly it will increase the financial performance of batik entrepreneurs in Malang.

Profit and Other Values: Thick Evaluation in Decision Making

2017 ◽  
Vol 27 (3) ◽  
pp. 353-379 ◽  
Author(s):  
Bastiaan van der Linden ◽  
R. Edward Freeman
Keyword(s):  
Decision Making ◽  
Profit Maximization ◽  
Ordinary Language ◽  
The Other ◽  
Knowing How ◽  
For Profit ◽  
Making Sense ◽  
A Value ◽  
The Many

ABSTRACT:Profit maximizers have reasons to agree with stakeholder theorists that managers may need to consider different values simultaneously in decision making. However, it remains unclear how maximizing a single value can be reconciled with simultaneously considering different values. A solution can neither be found in substantive normative philosophical theories, nor in postulating the maximization of profit. Managers make sense of the values in a situation by means of the many thick value concepts of ordinary language. Thick evaluation involves the simultaneous consideration of different values: making sense of a value always involves knowing how to engage with it given the other values in the situation. This also goes for profit: maximization is only one way of engaging with the value of profit, and grasping whether maximization is appropriate involves considering other values. We discuss some consequences of our approach for stakeholder theorists and profit maximizers.

scholarly journals The link between financial management, organizational capacity building and effectiveness in not-for-profit organizations: an exploratory study

2013 ◽  
Vol 11 (1) ◽  
pp. 632-636
Author(s):  
Ron Kluvers
Keyword(s):  
Social Services ◽  
Financial Management ◽  
Exploratory Study ◽  
Third Sector ◽  
Organizational Capacity ◽  
Management Skills ◽  
For Profit ◽  
The Third ◽  
Not For Profit ◽  
The Relationship

The third sector literature argues that organizational capacity is important for Not-For-Profit (NFP) organizations to achieve their missions. Financial management skills are important for the enhancement of effectiveness, accountability and viability of NFP organizations. While effectiveness is a contested concept its attainment is an important aspect of NFP management. This paper examines the relationship between financial management, the development of capacity and the encouragement of effectiveness. A survey of 67 NFP organizations affiliated with the Victorian Council of Social Services (VCOSS) was conducted and the findings establish a link between financial management and organizational capacity

Pengaruh Financial Leverage terhadap Financial Performance pada Sektor Industri Manufaktur yang Terdaftar di Bursa Efek Indonesia (BEI) Periode 2015

2018 ◽  
Vol 9 (2) ◽  
pp. 33-48
Author(s):  
Rivaldy Februansyah ◽  
Ika Yanuarti
Keyword(s):  
Financial Performance ◽  
Manufacturing Sector ◽  
Linear Regression Analysis ◽  
The Other ◽  
Debt Ratio ◽  
Financial Leverage ◽  
Coverage Ratio ◽  
Equity Ratio ◽  
Internal Fund

The manufacturing sector is one of the most dominant economic sectors in in achieving growth and development in Indonesia. It needs adequate fund to develop its business. The sources of fund are from internal and external. The firm usually optimized the usage of internal fund prior to external fund. The internal fund comes from equity while the external funds are from debt and stock. Debt is also known as financial leverage. There is a phenomenon that the usage of debt increased the firm’s financial performance, since interest on debt could lower the payment of tax (tax shield). On the other side, the higher the financial leverage the higher the risk of bankruptcy. This research aims to analyze whether financial leverage has an influence on financial performance in the manufacturing sector listed on the Indonesia Stock Exchange (IDX) period 2015. The method of analysis used in this research is multiple linear regression analysis. This research uses quantitative approach with a sample of 140 listed companies in the manufacturing industry. The firm’s financial performance could be measured by the financial ratios. Financial Leverage ratios are ratios that measure the ability of firm’s to meet its financial obligation and the level of usage debt as compared to equity. There are several financial leverage ratios that used in this research, such as Debt Ratio (DR), Debt to Equity Ratio (DER), Interest Coverage Ratio (ICR), and Long Term Debt Ratio (LTDR). Financial performance indicates the ability of firm to generate profit and measured by Profitability Ratio. Return on Asset (ROA) is one of the Profitability Ratio. The statistical result shows that Debt Ratio (DR) negatively affect Return on Asset (ROA) and Interest Coverage Ratio (ICR) positively affect Return on Asset (ROA). Meanwhile, Debt to Equity Ratio (DER) and Long Term Debt Ratio (LTDR) did not affect Return on Asset (ROA). On the other hand, result shows that Debt Ratio (DR), Debt to Equity Ratio (DER), Interest Coverage Ratio (ICR), and Long Term Debt Ratio (LTDR) affect Return on Asset (ROA) simultaneously. Keywords: Financial Leverage, Debt Ratio (DR), Debt to Equity Ratio (DER), Interest Coverage Ratio (ICR), Long Term Debt Ratio (LTDR), Financial Performance, Return on Assets (ROA)

scholarly journals A procedure for the introduction of leanness into a company

2021 ◽  
Author(s):  
Davorin Cimermančič ◽  
Janez Kušar ◽  
Tomaž Berlec
Keyword(s):  
Negative Impact ◽  
General Procedure ◽  
Portfolio Analysis ◽  
The Other ◽  
Business Operations ◽  
Step Procedure ◽  
The One ◽  
A Company

AbstractChanging a traditional company into a lean one is a very complex and time-consuming process that needs to be addressed in an appropriate way, otherwise the project of introduction of leanness into a company may fail on the one hand and even have a negative impact on business operations of the company on the other. When introducing a change, a step-by-step procedure leading to a progress may be of great help. The paper outlines a general procedure of leanness, an important part of which is a lean agent. A portfolio analysis is also used as a measure of leanness or as an indicator of the desired direction. The applied working methods were mainly active workshops and interviews with employees. The procedure has been tested on an example of a Slovene company; first, the existing situation is outlined, then the leanness steps taken according to the procedure and the final result after the first transition of the procedure.

Measuring the effects of tourists’ relative willingness to spend and third-degree price discrimination on inbound tourism expenditure differentials

2021 ◽  
pp. 135481662110300
Author(s):  
Usamah F Alfarhan ◽  
Khaldoon Nusair ◽  
Hamed Al-Azri ◽  
Saeed Al-Muharrami ◽  
Nan Hua
Keyword(s):  
Price Discrimination ◽  
Profit Maximization ◽  
Tourism Industry ◽  
Theoretical Argument ◽  
Total Expenditure ◽  
Conditional Quantile ◽  
For Profit ◽  
Inbound Tourism ◽  
Tourism Expenditure ◽  
Quantile Estimates

Tourism expenditures are determined by a set of antecedents that reflect tourists’ willingness and ability to spend, and de facto incremental monetary outlays at which willingness and ability is transformed into total expenditures. Based on the neoclassical theoretical argument of utility-constrained expenditure minimization, we extend the current literature by applying a sustainability-based segmentation criterion, namely, the Legatum Prosperity IndexTM to the decomposition of a total expenditure differential into tourists’ relative willingness to spend and an upper bound of third-degree price discrimination, using mean-level and conditional quantile estimates. Our results indicate that understanding the price–quantity composition of international inbound tourism expenditure differentials assists agents in the tourism industry in their quest for profit maximization.

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