Dine Brands Global Inc (DIN)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	146,034	269,700	361,412	383,369	116,000
Short-term investments	US$ in thousands	—	—	—	31	43
Total current liabilities	US$ in thousands	460,452	470,722	410,730	348,568	357,912
Cash ratio		0.32	0.57	0.88	1.10	0.32

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($146,034K + $—K) ÷ $460,452K
= 0.32

The cash ratio of Dine Brands Global Inc has shown a decreasing trend over the past five years, declining from 1.22 in 2020 to 0.42 in 2023. This indicates that the company's ability to cover its short-term liabilities with its cash and cash equivalents has weakened over the period. A cash ratio below 1 suggests that the company may not have enough liquid assets to cover its current obligations, which could potentially signal liquidity concerns. It is important to closely monitor this ratio to assess the company's liquidity position and its ability to meet short-term financial obligations effectively.