Bloomin Brands Inc (BLMN)

Bloomin Brands Inc's liquidity ratios, as indicated by the current ratio, quick ratio, and cash ratio, show a concerning trend over the years. The current ratio, which measures the company's ability to cover short-term obligations with its current assets, has remained consistently low, ranging from 0.34 to 0.36, indicating potential liquidity issues.

Similarly, the quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, has also shown a downward trend, with values fluctuating between 0.07 and 0.28. This suggests that the company may struggle to meet its immediate financial obligations without relying on inventory.

The cash ratio, representing the most conservative measure of liquidity by considering only cash and cash equivalents, has also displayed a worrisome pattern, remaining at low levels ranging from 0.07 to 0.28. This indicates a limited capacity to cover short-term liabilities with readily available cash.

Overall, Bloomin Brands Inc's liquidity ratios suggest potential challenges in meeting its current financial obligations without adequate improvements in its cash position and asset management. Investors and stakeholders may want to closely monitor the company's liquidity position and management's efforts to enhance short-term financial stability.

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Additional liquidity measure

Bloomin Brands Inc's cash conversion cycle has shown fluctuations over the years. It decreased from 7.97 days on December 31, 2020, to 7.18 days on December 31, 2023, indicating an improvement in the company's efficiency in managing its cash flows. However, there was a significant increase to 21.85 days on December 31, 2024, which might suggest potential challenges in converting sales into cash within the specified time frame. Overall, Bloomin Brands Inc should closely monitor its cash conversion cycle to ensure optimal cash flow management and working capital efficiency.