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.