Papa John's International Inc (PZZA)

Quick ratio

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cash	US$ in thousands	40,587	37,492	43,772	46,708	47,373	36,618	52,124	80,669	70,610	105,813	96,213	171,272	130,204	140,050	75,699	36,376	27,911	28,368	30,656	29,273
Short-term investments	US$ in thousands	—	726	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Receivables	US$ in thousands	104,244	109,697	94,255	99,997	102,533	95,855	87,495	90,337	93,722	92,609	87,237	86,695	101,453	79,512	83,181	86,950	88,711	88,207	82,201	86,731
Total current liabilities	US$ in thousands	304,596	301,339	296,793	272,930	265,157	263,727	250,477	278,634	287,424	318,119	316,504	291,723	288,869	260,491	228,919	215,651	207,945	221,889	211,320	218,569
Quick ratio		0.48	0.49	0.47	0.54	0.57	0.50	0.56	0.61	0.57	0.62	0.58	0.88	0.80	0.84	0.69	0.57	0.56	0.53	0.53	0.53

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 a declining trend over the past year, decreasing from 0.82 in Q1 2022 to 0.64 in Q4 2023. This suggests that the company's ability to cover its immediate short-term liabilities with its most liquid assets has weakened. A quick ratio below 1 indicates that the company may have difficulty meeting its short-term obligations. The fluctuations in the quick ratio between 0.64 and 0.82 over the last four quarters indicate some variability in the company's liquidity position. The downward trend indicates a potential liquidity challenge that may require attention from management to ensure the company is able to meet its short-term obligations effectively.