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Restaurant X has current ratio of 0.59 (2017), 0.6 (2016), and 0.62 (2015). It also has a quick ratio of 0.46 (2017), 0.48 (2016) and
Restaurant X has current ratio of0.59(2017),0.6(2016), and0.62(2015). It also has a quick ratio of0.46(2017),0.48(2016) and0.49(2015).
Its competitors have an average current ratio of1.39(2017),1.28(2016), and1.45(2015). Average quick ratio is1.23(2017),1.15(2016), and1.29(2015).
What does it current ratio imp? What about its quick ratio?
What does it say about the restaurant's liquidity?
What factors might have contributed to the trend of ratios from year 2015-2017?
Based on its liquidity, is it a wise decision to invest in Restaurant X?
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