Dine Brands Global Inc (DIN)

Cash conversion cycle

		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
Cash conversion cycle	days	25.78	61.99	70.08	95.80	88.92

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 56.19 – 30.41
= 25.78

The cash conversion cycle of Dine Brands Global Inc has fluctuated over the past five years. In 2023, the company experienced a negative cash conversion cycle of -47.02 days, indicating that it was able to convert its inventory to cash quickly and efficiently. This was a significant improvement compared to the previous year, where the cash conversion cycle stood at -30.45 days.

In 2021 and 2022, the company also reported negative cash conversion cycles of -32.79 days and -24.17 days, respectively, further highlighting its ability to manage its working capital effectively. However, in 2020, Dine Brands Global Inc had a positive cash conversion cycle of 24.17 days, suggesting a slower conversion of inventory to cash during that period.

Overall, the trend indicates that Dine Brands Global Inc has generally been effective in managing its cash conversion cycle, with the recent years showing notable improvements in efficiency.