Wingstop Inc (WING)

Quick ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash	US$ in thousands	90,216	184,496	48,583	40,858	12,849
Short-term investments	US$ in thousands	—	—	—	—	—
Receivables	US$ in thousands	12,408	9,461	8,110	4,929	5,175
Total current liabilities	US$ in thousands	71,004	62,412	39,681	50,473	32,929
Quick ratio		1.45	3.11	1.43	0.91	0.55

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($90,216K + $—K + $12,408K) ÷ $71,004K
= 1.45

The quick ratio of Wingstop Inc has shown fluctuations over the past five years. In 2023, the quick ratio stands at 1.45, indicating the company has $1.45 in liquid assets available to cover each dollar of its current liabilities. This suggests a relatively healthy liquidity position.

Compared to the previous year, 2022 saw a substantial increase in the quick ratio to 3.11, reflecting a significant improvement in short-term liquidity. However, in 2021, the quick ratio dropped to 1.43, indicating a slight decrease in liquidity compared to the previous year.

In 2020, Wingstop Inc experienced a quick ratio of 0.91, which denotes a decrease in liquidity as the company had $0.91 in quick assets to cover each dollar of its current liabilities. Furthermore, in 2019, the quick ratio was at 0.55, indicating a relatively lower level of liquidity.

Overall, the trend in Wingstop Inc's quick ratio shows some variability, but in recent years, the company has improved its liquidity position, as seen in the significant increase in the quick ratio in 2022. Maintaining a healthy quick ratio is crucial for a company's ability to meet its short-term obligations effectively.