Jack In The Box Inc (JACK)

Cash ratio

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Cash and cash equivalents	US$ in thousands	24,745	157,653	108,890	55,346	199,662
Short-term investments	US$ in thousands	—	—	—	—	—
Total current liabilities	US$ in thousands	434,259	559,620	521,683	329,066	340,354
Cash ratio		0.06	0.28	0.21	0.17	0.59

September 30, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($24,745K + $—K) ÷ $434,259K
= 0.06

The cash ratio of Jack In The Box Inc has fluctuated over the past five years. In the latest financial year ending September 30, 2024, the cash ratio was 0.06, indicating that the company had $0.06 of cash and cash equivalents for every $1 of current liabilities. This suggests a decrease in the company's ability to cover its short-term obligations solely with its available cash.

Compared to the cash ratio of 0.28 in 2023, and 0.21 in 2022, the downward trend in the cash ratio over the last three years may raise concerns about the company's liquidity position. However, it should be noted that the cash ratio was significantly lower in 2020 at 0.59, suggesting that Jack In The Box Inc has previously had higher liquidity levels.

Overall, the declining trend in the cash ratio over the past three years may indicate a potential liquidity challenge for the company. Further analysis of the company's cash management practices and working capital management would be necessary to assess the implications of this trend on its financial health and ability to meet its short-term obligations.