Chapter 8 Key Financial Metrics

Participating in Golf Datatech and PGA’s PerformanceTrak, which requires a golf course to submit monthly financial data to facilitate industry benchmarking, is a “must” for every golf course operator.

• True

• False

The firm’s use of its assets and the control of expenses are best measured by:

• Profitability ratios

• Liquidity ratios

• Activity ratios

• Debt ratios

The current ratio (current assets/current liabilities) is which one of the following?

• Profitability ratios

• Liquidity ratios

• Activity ratios

The inventory turnover ratio (cost of goods sold/average inventory) is best measured by:

• Profitability ratios

• Liquidity ratios

• Activity ratios

• Debt ratios

What percent of golf courses participate in PGA PerformanceTrak?

• Less than 20%

• 20% to 40%

• 40% to 60%

• 60% to 80%

PGA PerformanceTrak, via the annual operations summary, consists of how many reports regarding a facility’s operation:

• Over 40 reports

• Thirty to 40 reports

• Twenty to 30 reports

• Ten to 20 reports

Customer relationship management is focused on identifying a facility’s best customers to ensure that they are accorded services commensurate with their loyalty to that facility.

• True

• False

A well-run golf facility will achieve a net rate per round of what percentage of the average posted green fee rate?

• 40% to 50%

• 50% to 60%

• 60% to 70%

• Over 70%

Revenue benchmarks on a revenue per round basis should be measured for all but one of the following:

• Green fees

• Maintenance

• Carts

• Merchandise

The average utilization for hotels has hovered near 80% for the past five years. The utilization of golf courses compared to capacity during this time period has been:

• 0% to 20%

• 20% to 40%

• 40% to 60%

• 60% to 80%