J & J Snack Foods Corp (JJSF)
Quick ratio
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 73,394 | 49,581 | 35,181 | 283,192 | 195,809 |
| Short-term investments | US$ in thousands | — | — | 9,719 | 18,064 | 51,151 |
| Receivables | US$ in thousands | 189,233 | 198,129 | 208,178 | 162,939 | 126,587 |
| Total current liabilities | US$ in thousands | 174,073 | 174,944 | 181,839 | 167,629 | 134,126 |
| Quick ratio | 1.51 | 1.42 | 1.39 | 2.77 | 2.79 |
September 30, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($73,394K
+ $—K
+ $189,233K)
÷ $174,073K
= 1.51
The quick ratio of J & J Snack Foods Corp has exhibited some fluctuations over the past five years. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets.
In 2024, the quick ratio stands at 1.51, indicating that the company has $1.51 of liquid assets available to cover each $1 of current liabilities. This suggests a relatively healthy liquidity position, as there are sufficient liquid assets to meet short-term obligations.
Comparing this to the previous years, the quick ratio has shown a slight upward trend from 1.39 in 2022 to 1.51 in 2024, indicating an improvement in the company's ability to meet short-term obligations. In 2021, the quick ratio was significantly higher at 2.77, showing a strong ability to cover short-term liabilities with liquid assets. However, in 2020, the quick ratio was similar at 2.79, indicating a consistent liquidity position over the past few years.
Overall, the increasing trend in the quick ratio from 2022 to 2024 reflects positively on J & J Snack Foods Corp's liquidity position, suggesting an enhanced ability to meet short-term obligations with its liquid assets.