what is the current ratio for restaurants industry
The Rebel Sell Current Ratio = $32,000/$28,000 = 1.14 This means that there is $1.14 of current assets for every $1.00 of current liabilities and is a rough measure of your ability to pay your outstanding bills. In most industries a ratio of 1:1 is considered to be reasonable. Restaurants typically have lower ratios because they maintain relatively small inventory levels combined with a quick cash turnover (meals are paid for the same day as they are served).