Chuy's Holdings Inc (CHUY)

Quick ratio

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 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	67,774	69,863	82,624	82,598	78,028	84,126	96,258	89,713	106,621	105,107	113,547	97,258	86,817	77,775	67,237	28,023	10,074	10,476	11,752	7,345
Short-term investments	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Receivables	US$ in thousands	1,925	2,265	2,296	1,818	2,004	1,647	2,803	2,805	1,811	2,972	1,246	1,532	1,707	1,176	2,146	2,571	1,676	1,557	1,761	2,954
Total current liabilities	US$ in thousands	48,766	47,750	45,211	43,487	44,358	43,042	43,232	39,376	42,372	42,611	47,684	44,821	43,318	41,831	41,238	32,267	36,199	37,032	39,463	32,304
Quick ratio		1.43	1.51	1.88	1.94	1.80	1.99	2.29	2.35	2.56	2.54	2.41	2.20	2.04	1.89	1.68	0.95	0.32	0.32	0.34	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 a consistent downward trend over the past eight quarters, declining from a high of 2.47 in Q1 2022 to a low of 1.61 in Q4 2023. This indicates a reduction in the company's ability to cover its short-term obligations with its most liquid assets, such as cash and marketable securities.

While the quick ratio has fluctuated within a range of 1.61 to 2.47 over the period, the overall downward trajectory suggests potential liquidity challenges for the company in meeting its immediate payment obligations. A quick ratio below 1.0 may signal liquidity issues and an inability to fulfill short-term debt obligations.

It is essential for Chuy's Holdings Inc to closely monitor and manage its liquidity position to ensure it can meet its financial obligations as they come due. Additionally, management should consider implementing strategies to improve the quick ratio to enhance the company's financial stability and ability to weather economic uncertainties.