Financial Ratio Homogeneity and Its Implications for Reporting Risk in the Hotel Industry

Abstract

This study examines the homogeneity of financial ratios and its implications for reporting risk in the hotel industry. Rather than treating financial ratios solely as performance indicators, this study adopts a structural perspective that interprets ratio homogeneity as a reflection of consistency in financial reporting structures. Using a quantitative descriptive-exploratory approach, the analysis focuses on publicly listed companies in Indonesia with differing levels of hotel revenue exposure. Financial data are obtained from annual financial statements for the year 2024, a period selected to represent post-pandemic normal economic conditions. A total of 39 financial statement accounts are identified and combined to form 1,482 financial ratios for each company. Companies are grouped based on the proportion of hotel revenue to enable a more comparable reading of reporting structures. The level of ratio homogeneity within each group is measured using the Coefficient of Mean Absolute Deviation. The results indicate that financial ratio homogeneity does not occur uniformly across all dimensions. Profit-related ratios, particularly those linking profit after income tax, comprehensive income, and profit attributable to owners, exhibit high and consistent homogeneity across groups, suggesting a relatively standardized profit reporting structure within the industry. In contrast, ratios related to taxation and receivables display greater heterogeneity, indicating higher sensitivity to accounting judgments and firm-specific reporting practices. For companies with full hotel revenue exposure, a strong alignment between operating revenue and cash receipts is also observed, reflecting the cash-oriented characteristics of pure hotel business models. These findings suggest that ratio homogeneity can serve as an analytical reading tool for identifying relatively stable reporting components as well as areas that are more vulnerable to reporting variation. This study contributes to the literature by repositioning financial ratio analysis as a structural approach to understanding reporting risk implications in the hotel industry without directly measuring risk.