Methodological Approaches to Assessing Financial Performance of The Public Catering Enterprises by Banks

The financial sustainability of catering enterprises is crucial in tourism-driven economies, where such services operate under unique financial and operational models. Despite their importance, banks face methodological challenges when assessing the financial performance of catering establishments due to limited transparency in assets, risks, and capital structures. Existing approaches fail to adequately capture the peculiarities of the catering sector, particularly in remote or rapidly evolving service environments. This study aims to propose a more nuanced methodology that banks can apply to evaluate the financial condition of catering enterprises effectively. The analysis highlights key evaluation indicators including return on assets (ROA), equity adequacy, net worth, loan portfolio quality, and liquidity measures. It also emphasizes the impact of balance sheet manipulation and data insufficiency on credit assessments. A multi-tiered framework is suggested involving internal and remote assessments, combined with economic modeling to evaluate asset quality and capital costs, along with managerial efficiency and market positioning. This framework can improve credit risk evaluation and support the financial stability of catering enterprises, thereby benefiting banks, the wider economy, and society through enhanced service delivery and informed lending decisions.