Papa John's International Inc (PZZA)

Liquidity ratios

	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
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
Quick 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
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

Papa John's International Inc's liquidity ratios indicate fluctuating levels of liquidity over the quarters analyzed. The current ratio, a measure of short-term liquidity, ranged from a low of 0.76 to a high of 1.14. While the ratio improved in the most recent quarters, it remains below ideal levels, suggesting potential challenges in meeting short-term obligations.

The quick ratio, a more stringent liquidity measure that excludes inventory, also varied widely, ranging from 0.06 to 0.59. This ratio suggests that the company may face difficulty in quickly covering its current liabilities with its most liquid assets.

Similarly, the cash ratio, which reflects a company's ability to cover current liabilities with cash and cash equivalents alone, ranged from 0.06 to 0.59. This ratio highlights the company's reliance on non-cash assets to meet its short-term obligations.

Overall, the liquidity ratios of Papa John's International Inc show a pattern of inconsistent liquidity levels, indicating a need for careful management of working capital and efficient allocation of resources to ensure the company's ability to meet its financial commitments.

Additional liquidity measure

		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 conversion cycle	days	8.16	7.97	7.90	8.03	7.62	8.16	8.08	7.93	8.76	9.00	8.18	8.49	7.79	7.65	6.93	6.54	7.52	7.35	8.63	8.43

The cash conversion cycle for Papa John's International Inc has shown fluctuations over the periods provided in the data. It measures the amount of time it takes for the company to convert its investments in inventory and other resources into cash flows from sales.

From March 31, 2020, to December 31, 2022, the cash conversion cycle ranged from 6.54 days to 9.00 days. A lower number indicates the company is more efficient at managing its working capital.

In the most recent period, December 31, 2024, the cash conversion cycle was 8.16 days, remaining relatively steady compared to the previous quarter. This suggests that the company might be maintaining an optimal balance in managing its inventory, accounts receivable, and accounts payable to efficiently convert investments into cash.

Overall, monitoring the cash conversion cycle is important for assessing Papa John's efficiency in managing its working capital and cash flows, which are crucial for its financial health and operational effectiveness.