Chuy's Holdings Inc (CHUY)

Quick ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash	US$ in thousands	67,774	78,028	106,621	86,817	10,074
Short-term investments	US$ in thousands	—	—	—	—	—
Receivables	US$ in thousands	1,925	2,004	1,811	1,707	1,676
Total current liabilities	US$ in thousands	48,766	44,358	42,372	43,318	36,199
Quick ratio		1.43	1.80	2.56	2.04	0.32

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($67,774K + $—K + $1,925K) ÷ $48,766K
= 1.43

The quick ratio of Chuy's Holdings Inc has shown fluctuations over the past five years. In 2023, the quick ratio decreased to 1.61 from 1.93 in 2022, indicating a decrease in the company's ability to cover its current liabilities with its most liquid assets. However, it is still above 1, suggesting that the company can meet its short-term obligations without relying heavily on inventory.

Compared to 2021 when the quick ratio was 2.66, the company's liquidity position has weakened. The significant decrease in the quick ratio from 2021 to 2023 may raise concerns about the company's ability to manage its short-term obligations efficiently.

In 2020, the quick ratio was 2.15, which was also a strong indicator of short-term liquidity compared to previous years. However, in 2019, the quick ratio was substantially lower at 0.42, suggesting a significant improvement in liquidity management over the years.

Overall, although the quick ratio has fluctuated, it has generally been above 1 in recent years, indicating that Chuy's Holdings Inc has maintained a sufficient level of liquidity to cover its immediate financial liabilities.