Papa John's International Inc (PZZA)
Quick ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 37,955 | 17,550 | 24,305 | 27,768 | 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 |
| Short-term investments | US$ in thousands | — | — | 364 | 367 | 107 | 726 | — | — | 986 | — | — | — | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 277,963 | 270,525 | 275,219 | 282,634 | 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 |
| Quick ratio | 0.14 | 0.06 | 0.09 | 0.10 | 0.13 | 0.13 | 0.15 | 0.17 | 0.18 | 0.14 | 0.21 | 0.29 | 0.25 | 0.33 | 0.30 | 0.59 | 0.45 | 0.54 | 0.33 | 0.17 |
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 fluctuated over the period under consideration. The quick ratio, also known as the acid-test ratio, measures the company's ability to meet its short-term obligations with its most liquid assets. A higher quick ratio is generally preferred as it indicates a stronger ability to cover short-term liabilities.
Based on the data provided:
- The quick ratio has ranged from a low of 0.06 on September 30, 2024, to a high of 0.59 on March 31, 2021.
- The quick ratio showed significant variability, with some quarters showing improvements while others exhibited declines.
- Notable fluctuations in the quick ratio occurred in the periods ending March 31, 2023 to December 31, 2023, where the ratio decreased from 0.17 to 0.13.
- Overall, the quick ratio trended downwards towards the end of the period, with a decrease from 0.14 on December 31, 2024, to 0.09 on June 30, 2024.
In conclusion, the quick ratio of Papa John's International Inc has displayed fluctuations over the period, indicating varying levels of liquidity and ability to cover short-term obligations with its liquid assets. It is important for the company to closely monitor its quick ratio to ensure it maintains a strong liquidity position to meet its short-term financial obligations effectively.
Peer comparison
Dec 31, 2024