Dine Brands Global Inc (DIN)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Inventory turnover | — | 7.37 | 6.04 | 5.86 | 5.85 |
| Receivables turnover | 6.50 | 7.58 | 7.47 | 5.65 | 6.65 |
| Payables turnover | 12.00 | 10.22 | 9.31 | 11.77 | 12.89 |
| Working capital turnover | — | 100.58 | 5.48 | 2.90 | — |
1. Receivables Turnover: The company's receivables turnover ratio has been relatively consistent over the past five years, ranging from 5.65 to 7.58 times. This indicates that Dine Brands Global Inc collects its accounts receivable approximately 5.65 to 7.58 times a year, suggesting efficient management of credit sales and collection efforts.
2. Payables Turnover: The payables turnover ratio for the company has shown a decreasing trend over the years, falling from 10.67 in 2019 to 3.54 in 2023. This suggests that the company is taking longer to pay its suppliers, which may provide a potential benefit in terms of cash flow management and liquidity.
3. Working Capital Turnover: The working capital turnover ratio indicates how efficiently the company is using its working capital to generate sales revenue. The company had a significant increase in this ratio from 2.90 in 2020 to 100.58 in 2022, which indicates a substantial improvement in working capital management efficiency. However, the absence of data for 2023 makes it challenging to assess the current performance.
Overall, based on the available data, Dine Brands Global Inc appears to have relatively efficient management of receivables and payables, although further analysis and trend examination would be needed for a more comprehensive view of the company's activity ratios.
Average number of days
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | 49.55 | 60.43 | 62.26 | 62.36 |
| Days of sales outstanding (DSO) | days | 56.19 | 48.16 | 48.86 | 64.55 | 54.89 |
| Number of days of payables | days | 30.41 | 35.72 | 39.21 | 31.01 | 28.33 |
Days of inventory on hand (DOH) is not provided in the table, making it difficult to assess the efficiency of inventory management for Dine Brands Global Inc. However, based on the activity ratios available, we can analyze the company's performance.
Days of sales outstanding (DSO) has generally been trending downwards over the past five years, indicating that the company is collecting its accounts receivable more quickly. This is a positive trend as it suggests efficient credit management and a potential improvement in cash flow.
On the other hand, the number of days of payables has been increasing steadily over the years, indicating that the company is taking longer to pay its suppliers. While this could be beneficial in terms of cash flow management, it may also signal strained relationships with suppliers if payment terms are extended too far.
In conclusion, Dine Brands Global Inc has shown improvements in its collection of accounts receivable over the years but has also been extending its payment terms to suppliers. Further analysis would be needed to understand the impact of these trends on the company's overall liquidity and operational efficiency.
Long-term
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 5.13 | 6.26 | 5.00 | 3.67 | 4.21 |
| Total asset turnover | 0.48 | 0.48 | 0.45 | 0.33 | 0.44 |
Dine Brands Global Inc's long-term activity ratios reflect its efficiency in utilizing assets to generate revenue over the past five years. The fixed asset turnover ratio has fluctuated during this period, suggesting varying levels of effectiveness in generating sales from fixed assets. In 2022, the ratio peaked at 6.26, indicating that the company generated $6.26 in revenue for every $1 invested in fixed assets, representing a strong performance. However, the ratio slightly decreased in 2023 to 5.13 but remained relatively high, signaling continued efficiency in utilizing fixed assets.
On the other hand, the total asset turnover ratio has been relatively stable over the years, hovering around 0.45. This ratio indicates that Dine Brands Global Inc generated revenue equal to 45% of its total assets in 2021, reflecting the company's ability to efficiently use all assets (including fixed and current) to drive sales. The slight increase in the total asset turnover ratio in recent years demonstrates an improvement in the company's overall asset utilization efficiency.
Overall, the long-term activity ratios suggest that Dine Brands Global Inc has effectively managed its assets to generate revenue, with both fixed asset turnover and total asset turnover ratios showing positive trends over the analyzed period. The company's ability to efficiently utilize its assets bodes well for its long-term financial performance and operational effectiveness.