Papa John's International Inc (PZZA)

Quick ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash	US$ in thousands	37,955	40,587	47,373	70,610	130,204
Short-term investments	US$ in thousands	—	107	986	—	—
Receivables	US$ in thousands	—	—	—	—	—
Total current liabilities	US$ in thousands	277,963	304,596	265,157	287,424	288,869
Quick ratio		0.14	0.13	0.18	0.25	0.45

December 31, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($37,955K + $—K + $—K) ÷ $277,963K
= 0.14

The quick ratio of Papa John's International Inc has steadily declined over the past five years, starting at 0.45 in December 31, 2020, and decreasing to 0.14 in December 31, 2024. This downward trend indicates that the company's ability to meet its short-term obligations with its most liquid assets has weakened over time. A quick ratio below 1 suggests that the company may have difficulty covering its current liabilities with its current assets without relying on inventory sales. This may raise concerns about the company's liquidity position and ability to manage its short-term financial obligations effectively. Further analysis and monitoring of the company's liquidity management practices would be necessary to address this downward trend in the quick ratio.