Jack In The Box Inc (JACK)

Current ratio

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Total current assets	US$ in thousands	181,277	325,984	282,993	168,958	335,581
Total current liabilities	US$ in thousands	434,259	559,620	521,683	329,066	340,354
Current ratio		0.42	0.58	0.54	0.51	0.99

September 30, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $181,277K ÷ $434,259K
= 0.42

The current ratio of Jack In The Box Inc has fluctuated over the past five years, from 0.99 in 2020 to 0.42 in 2024. A current ratio below 1.0 indicates that the company may have difficulty meeting its short-term liabilities with its current assets.

The decreasing trend in the current ratio from 2020 to 2024 suggests a potential deterioration in the company's liquidity position. A current ratio of 0.42 in 2024 implies that for every dollar of current liabilities, the company only has $0.42 in current assets available to cover those obligations.

This declining trend raises concerns about Jack In The Box Inc's ability to pay off its short-term obligations, such as bills and debt, using its current assets. It may be necessary for the company to improve its liquidity position by either increasing its current assets or decreasing its current liabilities to achieve a healthier current ratio.