Jack In The Box Inc (JACK)

Current ratio

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
Total current assets	US$ in thousands	325,984	282,993	168,958	335,581	227,128
Total current liabilities	US$ in thousands	559,620	521,683	329,066	340,354	157,923
Current ratio		0.58	0.54	0.51	0.99	1.44

September 30, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $325,984K ÷ $559,620K
= 0.58

The current ratio of Jack In The Box Inc has been fluctuating over the past five years. In 2019, the ratio was at its highest at 1.44, indicating that the company had $1.44 in current assets for every dollar of current liabilities. However, since then, the ratio has been declining, reaching its lowest point in 2021 at 0.51. This suggests that Jack In The Box Inc had less liquidity and may have faced challenges in meeting its short-term obligations during that year.

Although there was a slight improvement in the current ratio in 2022 to 0.54, it remained below 1, indicating a potential concern about the company's short-term financial health. The ratio further decreased in 2023 to 0.58, indicating that the company continued to have fewer current assets relative to its current liabilities.

Overall, the trend in Jack In The Box Inc's current ratio over the past five years reflects a decline in liquidity and potential difficulties in managing short-term obligations. Investors and stakeholders may monitor this ratio closely to assess the company's ability to meet its short-term liabilities and evaluate its financial stability.