Papa John's International Inc (PZZA)

Current ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total current assets	US$ in thousands	231,018	251,039	255,009	306,407	181,546
Total current liabilities	US$ in thousands	304,596	265,157	287,424	288,869	207,945
Current ratio		0.76	0.95	0.89	1.06	0.87

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $231,018K ÷ $304,596K
= 0.76

The current ratio of Papa John's International, Inc. has fluctuated over the past five years. In 2023, the current ratio decreased to 0.76, indicating that the company may have difficulties meeting its short-term obligations using its current assets alone. This decline could be a cause for concern as it may suggest that the company's liquidity position has weakened.

Comparing this to previous years, the current ratio was at its highest in 2020 at 1.06, indicating a stronger ability to cover short-term liabilities with current assets. However, the current ratio dropped to 0.87 in 2019, showing a similar trend to the current year.

Overall, the declining current ratio trend over the years may suggest that Papa John's International, Inc. is facing challenges in managing its short-term liquidity and may need to assess its current asset allocation or operational efficiency to improve its liquidity position in the future.