Papa John's International Inc (PZZA)

Current ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Total current assets	US$ in thousands	230,605	231,018	251,039	255,009	306,407
Total current liabilities	US$ in thousands	277,963	304,596	265,157	287,424	288,869
Current ratio		0.83	0.76	0.95	0.89	1.06

December 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $230,605K ÷ $277,963K
= 0.83

The current ratio for Papa John's International Inc has been fluctuating over the years. As of December 31, 2020, the company had a current ratio of 1.06, indicating that it had $1.06 in current assets to cover every $1 in current liabilities. However, the ratio decreased to 0.89 by December 31, 2021, suggesting a potential liquidity strain.

Although there was a slight improvement in the current ratio to 0.95 by December 31, 2022, it declined significantly to 0.76 by December 31, 2023. This sharp decrease may raise concerns about the company's ability to meet its short-term obligations using its current assets.

In the most recent year, as of December 31, 2024, the current ratio improved slightly to 0.83; however, it remains below 1, indicating that Papa John's may continue to face challenges in covering its current liabilities with its current assets. Overall, the trend in the current ratio suggests a need for the company to closely monitor and manage its liquidity position to ensure financial stability.