BJs Restaurants Inc (BJRI)
Liquidity ratios
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 0.42 | 0.34 | 0.36 | 0.41 | 0.42 | 0.33 | 0.43 | 0.40 | 0.45 | 0.58 | 0.67 | 0.74 | 0.54 | 0.57 | 0.73 | 0.81 | 0.41 | 0.38 | 0.37 | 0.39 |
| Quick ratio | 0.24 | 0.17 | 0.21 | 0.26 | 0.27 | 0.21 | 0.32 | 0.28 | 0.34 | 0.48 | 0.58 | 0.63 | 0.42 | 0.48 | 0.63 | 0.68 | 0.28 | 0.28 | 0.26 | 0.28 |
| Cash ratio | 0.15 | 0.07 | 0.03 | 0.15 | 0.13 | 0.10 | 0.20 | 0.15 | 0.19 | 0.34 | 0.45 | 0.50 | 0.29 | 0.40 | 0.53 | 0.58 | 0.14 | 0.17 | 0.15 | 0.17 |
Based on the data provided, BJs Restaurants Inc has experienced fluctuations in its liquidity ratios over the past few quarters. The current ratio, which measures the company's ability to pay its short-term obligations with current assets, has generally been below 1, indicating potential liquidity concerns.
The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, also reflects a similar trend of being below 1 for most quarters. This suggests that the company may struggle to meet its immediate financial obligations without relying on inventory.
The cash ratio, which is the most conservative liquidity ratio and only includes cash and cash equivalents in the numerator, has shown variability but generally remains low. This indicates that BJs Restaurants Inc may have limited cash reserves to cover its short-term liabilities.
Overall, the liquidity ratios suggest that BJs Restaurants Inc may face challenges in meeting its short-term financial obligations and may need to closely monitor its cash flow and working capital management to improve its liquidity position.
Additional liquidity measure
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | -11.81 | -7.43 | -5.87 | -8.58 | -10.38 | -10.11 | -8.13 | -8.79 | -7.73 | -6.37 | -8.18 | -9.12 | -6.17 | -10.44 | -11.24 | -3.90 | 1.42 | -3.49 | -4.73 | -5.43 |
The cash conversion cycle of BJs Restaurants Inc has been fluctuating over the past five years. The cycle measures the average time it takes for a company to convert its investments in inventory and other resources into cash from sales.
Looking at the data provided, we can see that the company has managed to reduce its cash conversion cycle from negative 5.43 days in March 2019 to negative 11.81 days in December 2023. A negative cash conversion cycle indicates that the company is efficient in managing its working capital, as it is able to collect cash from customers before paying its suppliers.
However, the recent decrease in the cash conversion cycle from September 2023 to December 2023 (from -7.43 days to -11.81 days) may raise concerns about the company's ability to maintain efficient working capital management in the future. It is important for the company to monitor its cash conversion cycle closely to ensure that it remains efficient and does not negatively impact its liquidity or profitability.