Cornell Study Finds Restaurants Have Higher Liquidity

Professors Linda Canina and Steven A. Carvell of Cornell's The Center for Hospitality Research show that restaurants, particularly owner-operator firms, have more favorable short-term financing terms.

Link below leads to an 18 page pdf file (free registration needed)

Static ratios, such as the current ratio or the quick ratio, make restaurants seem like poor risks. An accurate evaluation of short-term liquidity may improve restaurants' cost of short-term financing, overall financing costs, and required returns from equity investors.