Jack In The Box Inc (JACK)

Quick ratio

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
Cash	US$ in thousands	157,653	108,890	55,346	199,662	125,536
Short-term investments	US$ in thousands	—	—	—	—	—
Receivables	US$ in thousands	99,678	103,803	74,335	78,417	45,235
Total current liabilities	US$ in thousands	559,620	521,683	329,066	340,354	157,923
Quick ratio		0.46	0.41	0.39	0.82	1.08

September 30, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($157,653K + $—K + $99,678K) ÷ $559,620K
= 0.46

The quick ratio of Jack In The Box Inc has been fluctuating over the past five years, indicating varying levels of liquidity. The ratio stood at 0.46 as of Sep 30, 2023, which reflects an increase compared to the previous year. This suggests that the company's ability to cover its short-term obligations with its most liquid assets has improved.

However, when considering historical trends, it is important to note that the quick ratio has been on a downward trajectory since Sep 30, 2019 when it was at a relatively healthy level of 1.08. The subsequent decrease to 0.82 in 2020, followed by further declines in 2021 and 2022, may indicate potential liquidity challenges or changes in the company's financial position.

A quick ratio below 1.0 generally raises concerns about a company's short-term liquidity and ability to meet immediate obligations. Therefore, Jack In The Box Inc's decreasing quick ratio trend in recent years may warrant further investigation into its cash management practices, working capital efficiency, and overall financial health.