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.