Wingstop Inc (WING)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 2.03 | 1.97 | 4.05 | 3.14 | 3.63 | 3.68 | 3.98 | 1.89 | 1.77 | 1.50 | 1.64 | 1.68 | 1.44 | 1.43 | 1.42 | 1.17 | 0.92 | 0.87 | 1.40 | 1.19 |
| Quick ratio | 1.45 | 1.34 | 3.39 | 2.47 | 3.11 | 3.01 | 3.29 | 1.71 | 1.43 | 0.95 | 0.96 | 0.95 | 0.91 | 0.93 | 1.08 | 0.80 | 0.55 | 0.41 | 0.95 | 0.64 |
| 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 |
Wingstop Inc's liquidity ratios, including the current ratio, quick ratio, and cash ratio, exhibit fluctuations over the periods presented. The current ratio, which measures the company's ability to cover short-term obligations with its current assets, has generally remained above 1, indicating a healthy level of liquidity. However, there are fluctuations, with the ratio ranging from a low of 0.87 to a high of 4.05.
The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, also shows variability over time. The company's ability to meet short-term obligations without relying on inventory ranges from a low of 0.41 to a high of 3.39.
The cash ratio, which is the most conservative measure of liquidity focusing solely on cash and cash equivalents, follows a similar trend of fluctuation. Wingstop Inc's ability to cover short-term liabilities with its cash holdings ranges from a low of 0.26 to a high of 3.21.
Overall, while Wingstop Inc generally maintains a satisfactory level of liquidity as indicated by the ratios consistently above 1, stakeholders should monitor the fluctuations in these ratios to assess the company's ongoing ability to meet its short-term financial obligations.
Additional liquidity measure
| 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 conversion cycle | days | 1.63 | 77.10 | 69.77 | 77.96 | -3.63 | 0.11 | -0.04 | -5.83 | -4.20 | 77.69 | 73.21 | 78.30 | -2.70 | 75.79 | 40.23 | 49.14 | -1.52 | 53.71 | 31.12 | 63.98 |
The cash conversion cycle of Wingstop Inc has fluctuated over the past few quarters. It measures the time it takes for the company to convert its investments in inventory and other resources into cash flows from sales.
In the recent quarter, the cash conversion cycle was 1.63 days, indicating that the company efficiently converted its resources into cash. However, in the previous quarters, the cycle was significantly longer, ranging from 40 to 77 days, suggesting slower cash conversion processes.
Negative values in some quarters indicate that Wingstop Inc was able to collect cash from customers before paying its suppliers, resulting in a more efficient cash conversion cycle.
The company should aim to manage its inventory levels effectively, streamline its accounts receivable collection, and negotiate favorable payment terms with suppliers to shorten the cash conversion cycle and improve overall cash flow efficiency.