Wingstop Inc (WING)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 315,910 | 90,216 | 184,496 | 48,583 | 40,858 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 19,661 | 12,408 | 9,461 | 8,110 | 4,929 |
| Total current liabilities | US$ in thousands | 87,443 | 71,004 | 62,412 | 39,681 | 50,473 |
| Quick ratio | 3.84 | 1.45 | 3.11 | 1.43 | 0.91 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($315,910K
+ $—K
+ $19,661K)
÷ $87,443K
= 3.84
The quick ratio of Wingstop Inc has exhibited fluctuations over the years. Starting at 0.91 in December 31, 2020, the ratio increased significantly to 1.43 by December 31, 2021, indicating an improvement in the company's ability to meet its short-term obligations with its most liquid assets. This trend continued in December 31, 2022, reaching a notably higher level of 3.11, suggesting a strong ability to cover immediate liabilities without relying on inventory.
However, the quick ratio decreased slightly to 1.45 by December 31, 2023, indicating a slight decrease in liquidity compared to the previous year. Subsequently, Wingstop Inc experienced a substantial increase in its quick ratio to 3.84 by December 31, 2024, suggesting a robust financial position with a considerable amount of liquid assets relative to short-term liabilities.
Overall, the trend in Wingstop Inc's quick ratio reflects fluctuations but generally shows an improvement in liquidity and the company's ability to meet its short-term obligations comfortably, especially in the most recent financial year.
Peer comparison
Dec 31, 2024