The purpose of this study is to develop a conceptual framework that measures the liquidity, profitability and working capital management of restaurants in Cagayan de Oro City over a five-year period. The following studies and opinions were helpful in this study. This chapter discusses the review of some variables in relation to profitability, liquidity and working capital management. Liquidity"When companies estimate and measure their liquidity, the focus is on the banking levels and funds they currently have" (Lamberg & Vålming, 2009, p.61). Lamberg and Vålming stated that liquidity ratio information can be used in different ways, however this information is most useful for the company's creditors and financiers. Additionally, they determined the impact of cash management on profitability using the current ratio and quick ratio as liquidity indicators. Ali and Hassan (2010) pointed out that the company's creditors always want to secure their money by ensuring that the company's liquid assets are greater than the short-term liabilities. In 2007, Bhunia studied cash management of both the private and public sectors of society. steel companies in India. He indicated that a firm with a relatively high current ratio signals the firm's ability to pay its short-term creditors on time, and that liquidity position is considered a prerequisite for a firm's survival. One of the commonly used methods and also the most used oldest measure of liquidity is the current ratio. It was first used to assess the creditworthiness of companies in the late 19th century (Lamberg & Vålming, 2009, p.29). Profitability The level of profitability plays a vital role in attracting investors, creditors and suppliers. In the financial literature, profitability in the subsector... at the center of the paper... includes those serving food and beverages, offering self-service or full service. This is made up of fine dining restaurants, fast food outlets, canteens and food courts. (Edralin, D., 2001). There are many such components in the country which can be local or international food chains. According to the 2008 survey of Philippine Business and Industry, there are 2,390 establishments consisting of restaurants, bars, canteens and other food-service establishments and generating a total revenue of Php 71.8 billion. As stated “the restaurant sector is very competitive, the lifestyle changes created by modern life continue to fuel its constant growth. More and more people have less time, resources and ability to cook for themselves." This convenience provided by restaurants leads to the positive trend of the industry. (Virtual Restaurant, n.d).