The Chefs Warehouse Inc (CHEF)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 49,878 | 158,800 | 115,155 | 193,281 | 140,233 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 334,015 | 260,167 | 172,540 | 96,383 | 175,044 |
| Total current liabilities | US$ in thousands | 385,777 | 283,745 | 197,018 | 118,102 | 150,151 |
| Quick ratio | 1.00 | 1.48 | 1.46 | 2.45 | 2.10 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($49,878K
+ $—K
+ $334,015K)
÷ $385,777K
= 1.00
The quick ratio of The Chefs Warehouse Inc has shown fluctuations over the past five years. The quick ratio measures the company's ability to meet its short-term liabilities with its most liquid assets. A quick ratio of 1.00 in 2023 indicates that the company has exactly enough liquid assets to cover its current liabilities.
Comparing this to previous years, we see a decrease from 1.48 in 2022 and 1.46 in 2021. This downward trend raises concerns about the company's ability to cover its short-term obligations with its liquid assets.
In 2020, the quick ratio was 2.45, indicating a significant improvement in the company's liquidity position compared to recent years. However, in 2019, the quick ratio was slightly lower at 2.10.
Overall, The Chefs Warehouse Inc's quick ratio has shown variability in recent years, with a notable decrease in 2023. This trend suggests that the company may need to closely monitor its liquidity position to ensure it can meet its short-term obligations in the future.
Peer comparison
Dec 31, 2023