The Chefs Warehouse Inc (CHEF)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 49,878 | 158,800 | 115,155 | 193,281 | 140,233 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 385,777 | 283,745 | 197,018 | 118,102 | 150,151 |
| Cash ratio | 0.13 | 0.56 | 0.58 | 1.64 | 0.93 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($49,878K
+ $—K)
÷ $385,777K
= 0.13
The Chefs Warehouse Inc's cash ratio has exhibited a declining trend over the past five years. In 2023, the cash ratio stood at 0.13, indicating that the company had $0.13 in cash and cash equivalents for every dollar of current liabilities. This represents a significant decrease from the previous year's ratio of 0.56 and a substantial drop compared to 2021 and 2020, where the cash ratios were 0.58 and 1.64, respectively. The lowest cash ratio within the period was seen in 2019 at 0.93.
The decreasing trend in the cash ratio suggests that the company may be becoming less able to cover its short-term obligations with its readily available cash and cash equivalents. This could potentially indicate a need for improved management of liquidity and working capital to ensure the company's ability to meet its financial obligations in the short term. Further analysis of the company's cash flow management and liquidity position would be beneficial to assess the reasons behind the declining cash ratio and to evaluate the overall financial health of The Chefs Warehouse Inc.
Peer comparison
Dec 31, 2023