Jack In The Box Inc (JACK)

Quick ratio

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Cash	US$ in thousands	24,745	157,653	108,890	55,346	199,662
Short-term investments	US$ in thousands	—	—	—	—	—
Receivables	US$ in thousands	83,567	99,678	103,803	74,335	78,417
Total current liabilities	US$ in thousands	434,259	559,620	521,683	329,066	340,354
Quick ratio		0.25	0.46	0.41	0.39	0.82

September 30, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($24,745K + $—K + $83,567K) ÷ $434,259K
= 0.25

The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. Jack In The Box Inc's quick ratio has shown fluctuations over the past five years.

As of September 30, 2024, the quick ratio stands at 0.25, indicating a decrease in the company's ability to cover its short-term liabilities with its quick assets. This could signify potential liquidity challenges for the company.

In comparison, the quick ratio was higher in the previous two years, at 0.46 in 2023 and 0.41 in 2022. This suggests better short-term liquidity positions during those periods.

The quick ratio was relatively lower in 2021 and 2020, at 0.39 and 0.82, respectively. The sharp decrease in 2021 could have been a cause for concern, while the high ratio in 2020 indicated strong short-term liquidity.

Overall, the downward trend in the quick ratio over the past five years for Jack In The Box Inc may signal potential liquidity challenges, and the company may need to carefully manage its short-term assets and liabilities to ensure financial stability.