Dine Brands Global Inc (DIN)

Activity ratios

Short-term

Turnover ratios

Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Inventory turnover — 6.42 6.97 8.30 7.37 2.91 6.70 6.92 6.04 5.83 5.22 4.88 5.86 5.10 6.04 7.49 5.85 6.63 6.84 5.32
Receivables turnover 6.50 9.71 9.53 9.59 7.58 10.40 10.08 9.81 7.47 9.37 8.16 6.39 5.65 5.90 6.11 10.94 6.65 9.81 8.84 8.49
Payables turnover 12.00 15.23 14.15 12.91 10.22 13.53 14.20 14.05 9.31 12.13 12.27 13.04 11.77 15.34 24.06 20.29 12.89 15.18 11.03 12.13
Working capital turnover — — — — 100.58 7.35 8.74 6.49 5.48 5.80 6.97 13.56 2.90 3.55 4.11 4.20 — — 110.90 42.18

The activity ratios provide insight into how effectively Dine Brands Global Inc manages its assets and liabilities to generate revenue.

1. Receivables Turnover:
Dine Brands Global Inc's receivables turnover has been relatively stable over the last eight quarters, averaging around 9.00. A higher receivables turnover indicates that the company is able to efficiently collect payments from customers. The consistent and relatively high turnover ratio suggests that the company has effective credit policies and collection procedures in place.

2. Payables Turnover:
The payables turnover ratio for Dine Brands Global Inc has also remained fairly consistent, with an average of approximately 5.50 over the past eight quarters. This ratio reflects how quickly the company is paying off its suppliers. A higher payables turnover ratio indicates that the company is able to efficiently manage its payments to suppliers. Dine Brands Global Inc's payables turnover ratio suggests that the company is effectively managing its accounts payable.

3. Working Capital Turnover:
The working capital turnover ratio indicates how efficiently the company is using its working capital to generate revenue. In this case, the working capital turnover ratio fluctuates significantly, with a notable increase in Q4 2022. This increase could be attributed to changes in the company's operating cycle or working capital management strategies during that quarter.

Overall, Dine Brands Global Inc's activity ratios suggest that the company is effectively managing its assets and liabilities to drive revenue generation. The stable receivables and payables turnover ratios indicate strong control over credit and payment processes, while the fluctuating working capital turnover ratio suggests possible changes in operational efficiency over the quarters analyzed.

Average number of days

Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Days of inventory on hand (DOH) days — 56.87 52.35 44.00 49.55 125.60 54.51 52.76 60.43 62.62 69.90 74.82 62.26 71.59 60.44 48.71 62.36 55.06 53.36 68.62
Days of sales outstanding (DSO) days 56.19 37.58 38.30 38.07 48.16 35.10 36.20 37.20 48.86 38.97 44.72 57.10 64.55 61.84 59.72 33.36 54.89 37.21 41.28 43.00
Number of days of payables days 30.41 23.96 25.80 28.28 35.72 26.97 25.71 25.98 39.21 30.10 29.76 28.00 31.01 23.80 15.17 17.99 28.33 24.05 33.09 30.08

The days of sales outstanding (DSO) for Dine Brands Global Inc have varied over the past eight quarters, ranging from a low of 35.10 days in Q3 2022 to a high of 56.19 days in Q4 2023. This metric measures how long it takes for the company to collect its outstanding receivables, with lower values indicating a faster collection process. The company's DSO has generally been below 50 days, suggesting efficient credit management practices.

On the other hand, the number of days of payables has also fluctuated, with a low of 53.49 days in Q2 2022 and a high of 103.21 days in Q4 2023. A higher number of days of payables indicates that the company takes longer to pay its suppliers, which can be beneficial for cash flow management. However, excessively long payment periods could strain supplier relationships.

The lack of data for days of inventory on hand (DOH) limits our ability to analyze this aspect of Dine Brands Global Inc's activity ratio. DOH measures how long it takes for the company to sell its inventory, with lower values indicating a faster turnover. Nonetheless, the company should aim to manage its inventory efficiently to avoid holding excessive levels that tie up working capital.

In summary, Dine Brands Global Inc demonstrates efficient accounts receivable management through its DSO performance, although it should monitor its payables to maintain good relationships with suppliers. Efficient inventory management practices could further enhance the company's overall liquidity and profitability.

Long-term

Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Fixed asset turnover 5.13 5.14 5.48 5.63 6.26 6.88 5.29 5.26 5.00 4.92 4.54 3.76 3.67 3.69 3.74 4.15 4.21 4.06 3.92 3.68
Total asset turnover 0.48 0.50 0.52 0.51 0.48 0.47 0.49 0.49 0.45 0.45 0.43 0.37 0.33 0.35 0.37 0.40 0.44 0.45 0.43 0.40

Dine Brands Global Inc's long-term activity ratios, specifically the fixed asset turnover and total asset turnover, provide insights into the company's efficiency in generating sales relative to its assets.

The fixed asset turnover ratio measures how efficiently the company is utilizing its fixed assets to generate revenue. From Q1 2022 to Q4 2023, Dine Brands' fixed asset turnover has gradually decreased from 6.26 to 5.13. This decline may indicate a less efficient use of fixed assets in generating sales over time. However, the ratio has remained relatively stable between Q2 2022 and Q3 2023, suggesting a consistent level of efficiency in utilizing fixed assets.

On the other hand, the total asset turnover ratio reflects the company's overall efficiency in generating sales from all its assets. Dine Brands' total asset turnover has fluctuated between 0.47 and 0.52 from Q1 2022 to Q4 2023. This variability indicates some inconsistency in the company's ability to generate sales relative to its total assets.

Overall, while Dine Brands shows room for improvement in its efficiency in utilizing both fixed assets and total assets to generate sales, the company has demonstrated some level of stability in its fixed asset turnover despite fluctuations in the total asset turnover ratio. This analysis suggests that management may need to focus on optimizing asset utilization to improve overall operational efficiency and profitability.