Restaurant Balance Sheet is Important

The balance sheet is a snapshot in time. The assets of a restaurant are in the order in which they can be liquidated. The liabilities of the restaurant are shown on the other side of the balance sheet. The total liabilities must equal the total assets.

Current Ratio = Current Assets/Current Liabilities. That should give you a ratio of at least 1:1. Ideally, you’d like to aim for 1.25:1. Sometimes you might have a reversed ratio – 0.90 for every dollar you owe. That’s a cash flow issue.

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More info

https://www.posist.com/restaurant-times/restro-gyaan/managing-restaurant-balance-sheet.html

https://upserve.com/restaurant-insider/5-things-know-becoming-restaurant-manager/