Wingstop Inc (WING)

Cash 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 and cash equivalents	US$ in thousands	90,216	77,983	188,500	196,198	184,496	173,511	165,824	287,013	48,583	50,125	43,504	39,993	40,858	48,230	45,766	31,030	12,849	9,472	17,075	13,625
Short-term investments	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total current liabilities	US$ in thousands	71,004	67,332	58,788	79,311	62,412	60,655	52,665	171,368	39,681	59,309	51,645	48,178	50,473	57,420	47,579	45,291	32,929	36,991	23,861	29,019
Cash ratio		1.27	1.16	3.21	2.47	2.96	2.86	3.15	1.67	1.22	0.85	0.84	0.83	0.81	0.84	0.96	0.69	0.39	0.26	0.72	0.47

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 varied over the periods provided. The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a better ability to cover short-term obligations.

In the most recent period, as of December 31, 2023, the cash ratio was 1.27, which suggests that Wingstop Inc had $1.27 in cash and cash equivalents for every $1 of current liabilities. This indicates a healthy liquidity position.

Looking at the trend over the past few quarters, the cash ratio has generally been fluctuating but has shown an overall improvement since the beginning of 2020 when it was at 0.39. The company’s cash ratio hit a peak of 3.21 in June 2023 but declined slightly in the most recent quarter.

Overall, Wingstop Inc’s cash ratio indicates that the company has been managing its short-term liquidity well, with a healthy level of cash reserves to meet its current obligations. However, it is important for investors and analysts to continue monitoring this ratio to ensure the company maintains a strong liquidity position in the future.