Ideally at least three years of operating information is available for analysis.  As with many outdoor activities, the year-to-year income of a golf course may be affected by the weather.  Other factors including competition and the general state of the economy may also cause swings in yearly income figures.  The key to accurately stabilizing income is the ability to recognize indicated trends and not solely relying on averages.

Forms GC5 and GC6, are examples of an integrated analysis and valuation spread sheet.  Form GC5 is used to analyze the income and expense history of a course and to select appropriate stabilized figures that are automatically transferred to the valuation form.  The form can be updated on annual basis simply by replacing the most dated year’s data with recent information.  When three years of financial data is displayed in a uniformed format, it is much easier to recognize trends and select more accurate stabilized figures.

Number of Rounds and Average Green Fee

The number of rounds for the past year(s) can be taken off the form received from the golf course owner or manager.  If the information hasn’t been provided, a follow-up call may be necessary.  Establishing the average green fee is achieved by dividing the number of rounds by the total golf income generated through the sale of green fees and memberships.

Total Golf Income divided by Number of Rounds = Average Green Fee