Accounting Ratios and Business Decisions of Hospitality Firms in Rivers State

The study examined accounting ratios and business decisions of hospitality firms in Nigeria. The study adopted four research objectives and hypothesis. The research adopted descriptive survey research design. The population for this study was two hundred and thirty-six and a sample size of one hundred and one knowledgeable and competent staff of the selected hospitality firms in Nigeria. The study used questionnaire instrument, and data were analyzed in the Statistical Package for Social Sciences Version 22. The research questions were analyzed using mean and standard deviation and hypotheses were tested using Simple bivariate regression analysis at a significance level of .05. The results of the findings showed that there was a very strong positive significant relationship between profitability ratios and measures of business decisions; it was revealed that there is a strong positive significant relationship between solvency ratios and measures of business decisions. This study recommends that the hospitality firms in Nigeria should adopt profitability ratios to improve business decisions. The Hospitality firms in Nigeria should be consistent in the use of accounting ratios in decision making. Hospitality firms should ensure that the solvency ratios are regularly carried out and maintained so as to sustain continuous growth, development and performance. This will also help to eliminate asset theft, concealment and preventing frauds in the system. The Hospitality firms should continuously improve on financial management through return on assets implementation, as this will go a long way in enhancing the masses’ satisfaction with easy and equal access to quality services.