The Chefs Warehouse Inc (CHEF)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 868,043 | 730,943 | 720,860 | 469,960 | 405,662 |
| Total current liabilities | US$ in thousands | 425,396 | 385,777 | 283,745 | 197,018 | 118,102 |
| Current ratio | 2.04 | 1.89 | 2.54 | 2.39 | 3.43 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $868,043K ÷ $425,396K
= 2.04
The current ratio of The Chefs Warehouse Inc has shown a fluctuating trend over the past five years. Starting at 3.43 in December 31, 2020, it decreased to 2.39 by December 31, 2021, and then slightly improved to 2.54 by December 31, 2022. However, there was a significant drop to 1.89 by December 31, 2023, indicating potentially weaker liquidity position. The ratio then increased to 2.04 by December 31, 2024, which shows a partial recovery. The current ratio measures the company's ability to cover its short-term liabilities with its current assets, with ratios above 1 indicating a healthy liquidity position. Despite the fluctuations, The Chefs Warehouse Inc has generally maintained a current ratio above 1 over the analyzed period, suggesting that it has sufficient current assets to meet its short-term obligations. Evaluating the trend of the current ratio along with other financial metrics can provide a more comprehensive view of the company's financial health and management of liquidity.
Peer comparison
Dec 31, 2024