The Chefs Warehouse Inc (CHEF)
Quick ratio
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 23, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 49,878 | 33,058 | 59,592 | 91,742 | 158,800 | 145,425 | 51,806 | 79,439 | 115,155 | 134,217 | 146,920 | 175,000 | 193,281 | 208,545 | 201,824 | 193,517 | 140,233 | 21,479 | 24,294 | 17,317 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | 334,015 | 338,613 | 322,625 | 274,598 | 260,167 | 208,939 | 208,229 | 169,792 | 172,540 | 151,720 | 136,072 | 99,459 | 96,383 | 100,576 | 105,125 | 144,263 | 175,044 | 164,562 | 157,461 | 152,123 |
| Total current liabilities | US$ in thousands | 385,777 | 350,218 | 333,433 | 304,228 | 283,745 | 236,890 | 230,929 | 194,171 | 197,018 | 183,902 | 175,883 | 129,834 | 118,102 | 135,143 | 121,669 | 152,430 | 150,151 | 138,350 | 139,238 | 127,831 |
| Quick ratio | 1.00 | 1.06 | 1.15 | 1.20 | 1.48 | 1.50 | 1.13 | 1.28 | 1.46 | 1.55 | 1.61 | 2.11 | 2.45 | 2.29 | 2.52 | 2.22 | 2.10 | 1.34 | 1.31 | 1.33 |
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 fluctuating values over the past few quarters. The quick ratio measures the company's ability to meet its short-term obligations using its most liquid assets.
From December 2019 to March 2020, the quick ratio was relatively stable around 2, indicating the company had twice as many quick assets as current liabilities. However, the ratio decreased significantly to 1.34 in June 2020, showing a potential reduction in liquidity.
From September 2020 to December 2022, the quick ratio improved steadily, reaching a peak of 1.61 in June 2021. This positive trend suggests an increase in liquidity and the company's ability to cover its short-term liabilities with its liquid assets.
Subsequently, from March 2021 to September 2022, the quick ratio continued to increase, peaking at 2.50 in September 2022. This significant rise indicates that the company had more than enough quick assets to cover its short-term obligations during this period.
However, starting from December 2022, the quick ratio declined steadily, reaching the lowest point of 1.00 in December 2023. This decline may raise concerns about the company's ability to meet its short-term obligations with its current liquid assets.
Overall, the fluctuating trend of the quick ratio for The Chefs Warehouse Inc indicates varying levels of liquidity and the company's ability to manage its short-term financial obligations effectively. It is important for the company to closely monitor and manage its liquidity position to ensure financial stability and meet its short-term obligations.
Peer comparison
Dec 31, 2023