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| | Hotel A | Hotel B |
| Current ratio | 1.5 | 2.2 |
| Acid test ratio | 1.3 | 0.9 |
| Operating cash flow to current liabilities | 1.8 | 1.3 |
| Inventory turnover | 15.6 | 12.3 |
| Accounts receivable turnover | 8.3 | 6.1 |
| Debt ratio | 0.48 | 0.25 |
| Number of times interest earned ratio | 4.3 | 2.5 |
| Profit margin | 11.20% | 12.30% |
| Operating efficiency | 25.40% | 18.30% |
| Return on equity | 14.30% | 10.20% |
| Average daily rate | $50.50 | $58.40 |
| REVPAR | $40.40 | $37.90 |
a. Which hotel has better liquidity? Why?
b. Which hotel is more solvent? Why?
c. Which hotel is more profitable in terms of management performance. Why?
d. Which hotel has better room operation performance? Why?
e. Calculate the occupancy rates of Hotels A and B, respectively.
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