The most important financial ratios come from the solvency category (e.g., WC/TA, TD/TA),
without underestimating the importance of profitability ratios, which indicate the dependence
of a firm’s viability on profit making (Dimitras et al., 1996:493)
Despite the abundance of studies that have investigated the failures of individual firms, there
are only a few documented business failure prediction studies for the hospitality industry (Gu,
2002:28), and even fewer in the Greek lodging sector.