ABSTRACT
Thus, for instance, in the case of a hospitality business such as a hotel, room occupancy is normally calculated as a percentage of total room capacity, whereas restaurant occupancy is often calculated as a seat turnover figure (i.e. the average number of times each seat is sold). Ratio analysis is a tool often used to interpret information presented in financial statements. It is, therefore, important that the relationship between the elements used in ratios is clear, direct, and understandable.
