Dine Brands Global Inc (DIN)

Cash conversion cycle

		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
Cash conversion cycle	days	25.78	70.49	64.85	53.79	61.99	133.72	64.99	63.98	70.08	71.50	84.86	103.92	95.80	109.63	105.00	64.09	88.92	68.22	61.54	81.55

December 31, 2023 calculation

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

Dine Brands Global Inc has shown a decreasing trend in its cash conversion cycle over the past eight quarters, indicating an improvement in its efficiency in managing its operating cycle. The company's cash conversion cycle has ranged from -47.02 days in Q4 2023 to -17.29 days in Q1 2022.

A negative cash conversion cycle suggests that Dine Brands is able to convert its inventory into cash and receive payments from customers before needing to pay its suppliers. This implies that the company is efficient in managing its working capital and has a strong liquidity position.

The decreasing trend in the cash conversion cycle further indicates that the company has been streamlining its operations and improving its efficiency in managing its cash flow. This could be a positive sign for investors and stakeholders, as it may lead to better financial performance and profitability for Dine Brands Global Inc.