Papa John's International Inc (PZZA)

Quick ratio

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Cash US$ in thousands 40,587 47,373 70,610 130,204 27,911
Short-term investments US$ in thousands
Receivables US$ in thousands 104,244 102,533 93,722 101,453 88,711
Total current liabilities US$ in thousands 304,596 265,157 287,424 288,869 207,945
Quick ratio 0.48 0.57 0.57 0.80 0.56

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($40,587K + $—K + $104,244K) ÷ $304,596K
= 0.48

The quick ratio of Papa John's International, Inc. has shown fluctuations over the past five years. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets. A quick ratio below 1 indicates that the company may have difficulty meeting its short-term liabilities.

In 2023, the quick ratio decreased to 0.64 from the previous year's 0.79. This decline suggests that the company's liquidity position weakened, as there was a decrease in assets that can be quickly converted to cash to cover current liabilities.

Comparing the quick ratio in 2023 to previous years, it is lower than the ratio of 0.77 in 2021 and 0.96 in 2020. This downward trend indicates a potential liquidity challenge for Papa John's International, Inc.

However, the quick ratio of 0.64 in 2023 is higher than the ratio of 0.74 in 2019, implying a slight improvement in liquidity compared to that year. Nonetheless, the overall downward trend in the quick ratio over the past two years may warrant further analysis to evaluate the company's short-term liquidity position.


Peer comparison

Dec 31, 2023