Tools for restaurant financial analysis – Part I
By David Scott Peters
Restaurant Tip of the Week
Know your current ratio
The current ratio gives a good indication of the financial stability of the restaurant. The calculation is performed by dividing the total current assets by total current liabilities. The higher the ratio is, the greater the stability, and vice versa.
Current assets/Current liabilities = Current ratio
David Scott Peters is a restaurant expert, coach, trainer and speaker, specializing in teaching independent restaurant owners how to use systems for increased sales and increased profits. He is the nationally acclaimed restaurant coach whose unique “SMART Systems” approach to boosting profits has earned him the title of, “The man who can walk into any restaurant in America and find $10,000 in undiscovered cash before he hits the back door – Guaranteed!” Visit www.TheRestaurantExpert.com for more. Learn more tips, tricks and secrets in David’s free five-part e-course, “How to Explode Your Restaurant Profits NOW!” Simply sign up to receive the e-course at TheRestaurantExpert.com.