Bloomin Brands Inc (BLMN)

Bloomin Brands Inc's liquidity ratios indicate the company's ability to meet its short-term obligations. The current ratio has been consistently low over the past five years, ranging from 0.34 to 0.36. This suggests that Bloomin Brands may have difficulties in covering its current liabilities with its current assets alone.

The quick ratio, which excludes inventory from current assets, also reflects a similar trend with values ranging from 0.26 to 0.28. This indicates that the company may struggle to meet its short-term financial obligations without relying on selling inventory.

The cash ratio, which measures the ability to cover current liabilities with cash and cash equivalents, has shown slight fluctuations over the years, with the highest value of 0.16 in 2023 and the lowest of 0.11 in 2019. While the cash ratio has shown some improvement, it is still relatively low, indicating that Bloomin Brands may have limited cash resources to cover its immediate obligations without relying on other current assets.

In conclusion, based on the liquidity ratios, Bloomin Brands Inc may face challenges in meeting its short-term obligations, as the current, quick, and cash ratios all suggest a limited ability to cover current liabilities with available assets.

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Additional liquidity measure

The cash conversion cycle of Bloomin Brands Inc has varied over the past five years, reflecting the company's efficiency in managing its working capital. The cycle measures the time it takes for the company to convert its investments in inventory into cash receipts from customers.

From the data provided, we observe a declining trend in the cash conversion cycle from 2019 to 2023, indicating improved efficiency in managing working capital. The company was able to convert inventory into cash more quickly in recent years.

In 2019, the cash conversion cycle was -12.70 days, meaning that Bloomin Brands was able to convert its investments in inventory into cash receipts in less than two weeks. The cycle improved further in 2020 and 2021, reaching -17.63 days and -15.48 days, respectively.

By 2022 and 2023, Bloomin Brands achieved even higher efficiency in managing its cash conversion cycle, with -16.95 days and -21.29 days, respectively. This negative value indicates that the company was able to convert its investments in inventory into cash even faster, potentially due to a streamlined operations and effective working capital management.

Overall, the improving trend in Bloomin Brands Inc's cash conversion cycle suggests effective management of its working capital and efficient operations in converting inventory into cash receipts. A shorter cash conversion cycle generally indicates better liquidity and operational efficiency within the company.