Papa John's International Inc (PZZA)

Current 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
Total current assets	US$ in thousands	230,605	215,857	225,740	225,927	231,018	246,556	242,002	246,898	251,039	239,524	239,788	286,269	255,009	271,760	262,343	331,581	306,407	279,938	225,473	185,193
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
Current ratio		0.83	0.80	0.82	0.80	0.76	0.82	0.82	0.90	0.95	0.91	0.96	1.03	0.89	0.85	0.83	1.14	1.06	1.07	0.98	0.86

December 31, 2024 calculation

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

Papa John's International Inc's current ratio has exhibited fluctuating trends over the reported periods. The current ratio, a measure of the company's short-term liquidity, indicates its ability to meet its short-term obligations using its current assets.

Throughout the period under review, the current ratio has generally ranged between 0.76 and 1.14. Specifically, the current ratio improved from 0.86 as of March 31, 2020, to a peak of 1.14 as of March 31, 2021, before declining at certain points and plateauing around the 0.80 to 0.90 range in recent periods.

An ideal current ratio is typically considered to be 1 or higher, suggesting that the company has more current assets than current liabilities to cover its short-term debt obligations. In Papa John's case, the ratio has sometimes fallen below 1, indicating a potential risk of liquidity issues in meeting short-term obligations. Although the ratio has improved at times, it continued to fluctuate, highlighting the need for careful monitoring of the company's liquidity position.

Overall, the current ratio of Papa John's International Inc reflects varying levels of liquidity and the company's ability to manage its short-term obligations, indicating fluctuations in its working capital management over the reported periods.