CAVA Group, Inc. (CAVA)

Cash ratio

		Mar 31, 2025	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022
Cash and cash equivalents	US$ in thousands	289,350	366,120	367,160	343,748	329,117	332,428	340,399	352,845	22,716	39,125	39,125
Short-term investments	US$ in thousands	79,917	—	—	—	—	—	—	—	—	—	—
Total current liabilities	US$ in thousands	134,278	132,636	134,441	123,601	111,308	109,036	112,931	114,698	106,088	84,318	84,318
Cash ratio		2.75	2.76	2.73	2.78	2.96	3.05	3.01	3.08	0.21	0.46	0.46

March 31, 2025 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($289,350K + $79,917K) ÷ $134,278K
= 2.75

The cash ratio of CAVA Group, Inc. demonstrates significant variability over the observed periods, reflecting shifts in liquidity positioning. At the end of September 2022 and December 2022, the cash ratio was steady at 0.46, indicating that cash and cash equivalents covered approximately 46% of current liabilities—an indication of moderate liquidity with a reliance on other current assets to meet short-term obligations.

A notable decline is observed by March 31, 2023, when the cash ratio drops to 0.21. This reduction suggests a decrease in cash holdings relative to current liabilities, potentially implying increased usage of cash for operational needs or investments, or a decline in liquid assets. Such a decrease signals a tightening in liquidity and a higher dependency on non-cash current assets to sustain short-term obligations.

Subsequently, a substantial increase occurs by June 30, 2023, with the cash ratio surging to 3.08. This marked improvement indicates that cash and cash equivalents exceeded three times the current liabilities, representing a significant enhancement in liquidity cushion and financial safety regarding short-term liabilities. The ratio remains robust through September 30, 2023, at 3.01, implying sustained liquidity strength.

Moving into December 2023 and beyond, the cash ratio persists at elevated levels—3.05 at year-end 2023, with slight fluctuations subsequently (2.96 in March 2024, 2.78 in June 2024, and 2.73 in September 2024). These consistently high ratios imply that the company maintains substantial liquidity reserves relative to its current liabilities during this period, affording flexibility and resilience against short-term financial pressures.

By December 2024 and March 2025, the ratios remain stable at around 2.75 to 2.76, indicating a sustained position of ample cash reserves covering multiple times the current liabilities. Overall, the trend delineates a period of liquidity enhancement followed by a stable pattern of high liquidity ratios, suggesting prudent cash management practices and a conservative approach toward maintaining liquidity buffers.

In summary, CAVA Group, Inc. experienced a temporary dip in liquidity in early 2023 but subsequently established and maintained a robust cash position. The high and stable cash ratios in the latter periods reflect a conservative liquidity posture, providing the company with a substantial safety margin to meet short-term obligations.