Wingstop Inc (WING)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	90,216	184,496	48,583	40,858	12,849
Short-term investments	US$ in thousands	—	—	—	—	—
Total current liabilities	US$ in thousands	71,004	62,412	39,681	50,473	32,929
Cash ratio		1.27	2.96	1.22	0.81	0.39

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($90,216K + $—K) ÷ $71,004K
= 1.27

The cash ratio of Wingstop Inc has exhibited fluctuations over the past five years. The cash ratio in 2023 stands at 1.27, indicating that the company has $1.27 in cash and cash equivalents for every dollar of current liabilities, suggesting a strong ability to cover its short-term obligations with its liquid assets.

Compared to the previous years, the cash ratio was notably higher in 2022 at 2.96, signaling a significant increase in liquidity and ability to meet short-term obligations comfortably. In 2021, the cash ratio decreased to 1.22, implying a slight dip in liquidity compared to the previous year.

Furthermore, in 2020 and 2019, Wingstop Inc had lower cash ratios of 0.81 and 0.39, respectively, indicating lower liquidity levels and potentially lower ability to cover short-term liabilities with available cash and cash equivalents.

Overall, the trend in the cash ratio of Wingstop Inc highlights fluctuations in liquidity levels over the past five years, with the company showing varying degrees of ability to meet its short-term obligations with its cash reserves.