Papa John's International Inc (PZZA)

Cash ratio

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cash and cash equivalents	US$ in thousands	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	27,911	28,368	30,656	29,273
Short-term investments	US$ in thousands	—	726	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total current liabilities	US$ in thousands	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	207,945	221,889	211,320	218,569
Cash ratio		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	0.13	0.13	0.15	0.13

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($40,587K + $—K) ÷ $304,596K
= 0.13

The cash ratio for Papa John's International, Inc. has been fluctuating over the past eight quarters, ranging from 0.27 to 0.46. The trend shows a decline starting from the first quarter of 2022, where the ratio was 0.46, to the fourth quarter of 2023, where it stood at 0.27. This indicates that the company's ability to cover its current liabilities with its cash and cash equivalents has gradually decreased over the period.

A cash ratio of 0.27 in Q4 2023 suggests that for every dollar of current liabilities, the company had $0.27 in cash and cash equivalents available. This could indicate a potential liquidity risk for the company if the trend continues. However, it is essential to consider other factors such as the composition of current assets and liabilities, as well as overall cash flow management, to gain a comprehensive understanding of Papa John's financial health.