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