Wingstop Inc (WING)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 315,910 | 90,216 | 184,496 | 48,583 | 40,858 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 87,443 | 71,004 | 62,412 | 39,681 | 50,473 |
| Cash ratio | 3.61 | 1.27 | 2.96 | 1.22 | 0.81 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($315,910K
+ $—K)
÷ $87,443K
= 3.61
The cash ratio of Wingstop Inc has shown a positive trend over the past five years. Starting at 0.81 on December 31, 2020, the ratio increased to 1.22 by the end of December 2021, reflecting an improvement in the company's ability to cover its short-term liabilities with its available cash. Subsequently, the ratio saw a significant jump to 2.96 by December 31, 2022, indicating a substantial increase in the company's liquidity position.
However, by the end of December 2023, the cash ratio decreased slightly to 1.27, which might suggest a temporary dip in the company's cash reserves relative to its short-term obligations. Nevertheless, Wingstop Inc managed to strengthen its liquidity position again by the end of December 2024, as the cash ratio improved to 3.61, signaling a robust ability to meet immediate financial obligations with cash on hand.
Overall, the increasing trend in Wingstop Inc's cash ratio indicates an improving liquidity position over the years, underscoring the company's enhanced capability to manage short-term financial commitments with its available cash resources.
Peer comparison
Dec 31, 2024