Papa John's International Inc (PZZA)

Cash ratio

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Cash and cash equivalents	US$ in thousands	37,955	17,550	24,305	27,768	40,587	37,492	43,772	46,708	47,373	36,618	52,124	80,669	70,610	105,813	96,213	171,272	130,204	140,050	75,699	36,376
Short-term investments	US$ in thousands	—	—	364	367	107	726	—	—	986	—	—	—	—	—	—	—	—	—	—	—
Total current liabilities	US$ in thousands	277,963	270,525	275,219	282,634	304,596	301,339	296,793	272,930	265,157	263,727	250,477	278,634	287,424	318,119	316,504	291,723	288,869	260,491	228,919	215,651
Cash ratio		0.14	0.06	0.09	0.10	0.13	0.13	0.15	0.17	0.18	0.14	0.21	0.29	0.25	0.33	0.30	0.59	0.45	0.54	0.33	0.17

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($37,955K + $—K) ÷ $277,963K
= 0.14

The cash ratio of Papa John's International Inc has fluctuated over the period from March 31, 2020, to December 31, 2024. The cash ratio measures the company's ability to cover its short-term liabilities with its cash and cash equivalents.

The trend in the cash ratio shows some variability, starting at 0.17 on March 31, 2020, reaching its peak at 0.59 on March 31, 2021, and then gradually declining. Notably, there are fluctuations in the cash ratio values throughout the periods examined.

The cash ratio improved significantly from 0.17 on March 31, 2020, to 0.59 on March 31, 2021, indicating a strengthening liquidity position during this period. However, it dropped thereafter, reaching 0.06 on September 30, 2024, before slightly recovering to 0.14 by December 31, 2024.

Overall, the decreasing trend in the cash ratio from 2021 to 2024 suggests that the company may have faced challenges in maintaining sufficient cash reserves relative to its short-term obligations during certain periods. It is important for Papa John's to closely monitor and manage its cash position to ensure it can meet its short-term financial obligations effectively.