Jack In The Box Inc (JACK)
Liquidity ratios
| Sep 30, 2024 | Jul 7, 2024 | Apr 14, 2024 | Jan 21, 2024 | Sep 30, 2023 | Jul 9, 2023 | Apr 16, 2023 | Jan 22, 2023 | Sep 30, 2022 | Jul 10, 2022 | Apr 17, 2022 | Jan 23, 2022 | Sep 30, 2021 | Jun 30, 2021 | Apr 11, 2021 | Jan 17, 2021 | Sep 30, 2020 | Jul 5, 2020 | Apr 12, 2020 | Jan 19, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 0.42 | 0.43 | 0.44 | 0.44 | 0.58 | 0.56 | 0.50 | 0.57 | 0.54 | 0.44 | 0.41 | 0.58 | 0.51 | 0.58 | 0.70 | 1.21 | 0.99 | 0.88 | 0.77 | 0.38 |
| Quick ratio | 0.25 | 0.25 | 0.28 | 0.27 | 0.46 | 0.45 | 0.38 | 0.46 | 0.41 | 0.37 | 0.33 | 0.52 | 0.39 | 0.52 | 0.65 | 1.16 | 0.82 | 0.81 | 0.68 | 0.29 |
| Cash ratio | 0.06 | 0.05 | 0.05 | 0.13 | 0.28 | 0.29 | 0.19 | 0.33 | 0.21 | 0.20 | 0.20 | 0.32 | 0.17 | 0.31 | 0.36 | 0.97 | 0.59 | 0.56 | 0.49 | 0.12 |
Jack In The Box Inc's liquidity ratios show a fluctuating trend over the past few quarters. The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, has been declining gradually from 1.21 in January 2021 to 0.42 in September 2024. This indicates a potential deterioration in the company's liquidity position.
Similarly, the quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, also shows a downward trend from 1.16 in January 2021 to 0.25 in September 2024. This suggests that Jack In The Box Inc may be facing challenges in meeting its short-term obligations without relying on inventory.
The cash ratio, which reflects the company's ability to cover its current liabilities with cash and cash equivalents, has been volatile but generally decreasing over the quarters, falling from 0.97 in January 2021 to 0.06 in September 2024. This indicates that the company's cash position relative to its current liabilities has weakened over time.
Overall, Jack In The Box Inc's liquidity ratios suggest a concerning trend of declining liquidity and potential difficulties in meeting short-term obligations without relying heavily on inventory and other current assets. Management may need to closely monitor and address these liquidity challenges to ensure the company's financial stability moving forward.
Additional liquidity measure
| Sep 30, 2024 | Jul 7, 2024 | Apr 14, 2024 | Jan 21, 2024 | Sep 30, 2023 | Jul 9, 2023 | Apr 16, 2023 | Jan 22, 2023 | Sep 30, 2022 | Jul 10, 2022 | Apr 17, 2022 | Jan 23, 2022 | Sep 30, 2021 | Jun 30, 2021 | Apr 11, 2021 | Jan 17, 2021 | Sep 30, 2020 | Jul 5, 2020 | Apr 12, 2020 | Jan 19, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | -13.16 | -10.74 | -12.21 | -14.78 | -12.38 | -1.81 | -1.47 | -1.38 | -4.81 | -7.39 | -18.78 | -0.79 | -2.06 | -11.04 | 4.95 | 0.18 | -14.23 | -33.04 | -82.70 | -13.82 |
The cash conversion cycle of Jack In The Box Inc has fluctuated over the past several quarters. The company has shown both positive and negative cash conversion cycles, indicating variations in its efficiency in managing its working capital.
On average, the company has been able to convert its inventory into cash within a relatively short period, as evidenced by the negative values of the cash conversion cycle. This suggests that Jack In The Box Inc has been able to sell its products and collect cash from customers quickly, potentially indicating efficient inventory management and strong sales performance.
However, it is worth noting that the company has experienced some periods of longer cash conversion cycles, particularly in the third and fourth quarters of 2020 and the first quarter of 2021. During these periods, Jack In The Box Inc may have faced challenges in efficiently converting its inventory into cash or collecting payments from customers in a timely manner.
Overall, monitoring the trend of the cash conversion cycle over time can provide insights into Jack In The Box Inc's operational efficiency and working capital management practices. It is important for the company to focus on maintaining a consistent and efficient cash conversion cycle to support its overall financial health and performance.