The Chefs Warehouse Inc (CHEF)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 730,943 | 720,860 | 469,960 | 405,662 | 453,156 |
| Total current liabilities | US$ in thousands | 385,777 | 283,745 | 197,018 | 118,102 | 150,151 |
| Current ratio | 1.89 | 2.54 | 2.39 | 3.43 | 3.02 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $730,943K ÷ $385,777K
= 1.89
The current ratio of The Chefs Warehouse Inc has fluctuated over the past five years, ranging from 1.89 in 2023 to 3.43 in 2020. The current ratio measures the company's ability to meet its short-term obligations with its current assets. A higher current ratio indicates a stronger liquidity position, as the company has more current assets relative to its current liabilities.
The current ratio of 1.89 in 2023 suggests that the company may have slightly less liquidity compared to previous years, as it has $1.89 in current assets for every $1 in current liabilities. However, it is important to note that a current ratio above 1 indicates that the company has sufficient current assets to cover its short-term obligations.
The decreasing trend in the current ratio over the past few years may warrant further investigation into the company's management of its current assets and liabilities. It could indicate a change in the company's operating cycle or financial strategy. Overall, while the current ratio of 1.89 in 2023 indicates a satisfactory liquidity position, monitoring future trends in this ratio will be important for assessing the company's financial health.
Peer comparison
Dec 31, 2023