Type of Submission
Financial ratios analysis is a very useful tool for owners and managers to assess the performance of their clubs. This study surveyed the financial performance of clubs over a 3-year period from 2014 to 2016. While 8 of the 24 ratios showed a positive trajectory each year in the last few years and 8 other ratios reported a positive trend from 2015 to 2016, 7 reported a mixed trend, and 1 experienced a downward trend. The results of the top performers (fifth, or top, quintile) and the bottom performers (first, or lowest, quintile) and clubs of different sizes were also studied. In 2016, the median profit margin was at a high of 1.12%, with the top quintile reporting at 17.3% and the lower quintile at loss of 9.52%.
DeFranco, Agnes and Schmidgall, Raymond
"Financial Health of Clubs for 2014–2016: A Three-Year Review,"
Journal of Hospitality Financial Management: Vol. 26
, Article 6.
Available at: https://scholarworks.umass.edu/jhfm/vol26/iss1/6