The Chefs Warehouse Inc (CHEF)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 114,655 | 49,878 | 158,800 | 115,155 | 193,281 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 425,396 | 385,777 | 283,745 | 197,018 | 118,102 |
| Cash ratio | 0.27 | 0.13 | 0.56 | 0.58 | 1.64 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($114,655K
+ $—K)
÷ $425,396K
= 0.27
The cash ratio of The Chefs Warehouse Inc has exhibited a declining trend over the past five years. Starting at a strong level of 1.64 on December 31, 2020, the ratio decreased to 0.58 by December 31, 2021, and further to 0.56 by December 31, 2022.
However, the cash ratio took a significant downturn to 0.13 by December 31, 2023, indicating a substantial reduction in the company's ability to cover its short-term liabilities solely with cash and cash equivalents. The ratio slightly improved to 0.27 as of December 31, 2024, but it still remains significantly lower than the initial level in 2020.
This downward trend in the cash ratio may suggest that The Chefs Warehouse Inc is facing challenges in maintaining sufficient cash reserves compared to its short-term obligations, which could potentially impact its liquidity position and ability to meet immediate financial needs. Investors and stakeholders may want to closely monitor this trend to assess the company's financial health and sustainability.
Peer comparison
Dec 31, 2024