CAVA Group, Inc. (CAVA)

Current 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
Total current assets	US$ in thousands	403,025	394,154	393,260	369,766	352,014	354,912	363,649	374,614	46,987	58,150	58,150
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
Current ratio		3.00	2.97	2.93	2.99	3.16	3.25	3.22	3.27	0.44	0.69	0.69

March 31, 2025 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $403,025K ÷ $134,278K
= 3.00

The current ratio of CAVA Group, Inc. has exhibited significant fluctuations over the period from September 2022 to March 2025. Initially, the ratio was relatively low at 0.69 at both September and December 2022, indicating that current liabilities slightly exceeded current assets during this period. This low ratio suggests potential liquidity concerns, as the company may have had limited short-term asset coverage for its short-term obligations.

From March 2023, the current ratio declined further to 0.44, accentuating the liquidity challenge and possibly highlighting increased short-term liabilities or a decrease in current assets relative to current liabilities. Such a low ratio could have signaled heightened liquidity stress or operational difficulties.

However, starting in June 2023, the ratio experienced a substantial increase to 3.27, and it remained elevated throughout the remainder of 2023 and into early 2024. This sharp rise indicates a strengthening in the company's liquidity position, with current assets significantly surpassing current liabilities, reflecting improved short-term financial health and potentially better cash management or asset optimization.

Throughout 2024, the current ratio remained relatively stable, fluctuating between approximately 2.99 and 3.25. These levels suggest a solid liquidity buffer, with assets comfortably covering near-term obligations, aligning with a prudent liquidity stance.

By March 2025, the ratio was approximately 3.00, maintaining a consistent level of liquidity. This stable high ratio over the period indicates that the company's short-term solvency position has improved markedly from its earlier low point, now signaling a more robust financial footing with ample current assets relative to current liabilities.

Overall, the trend depicts a transition from initial liquidity concerns in late 2022 and early 2023 to a period of strong liquidity positioning thereafter, suggesting strategic improvements in working capital management and financial stability.