Dine Brands Global Inc (DIN)

Current ratio

		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
Total current assets	US$ in thousands	357,778	263,801	269,806	348,371	479,764	645,786	449,828	476,855	574,353	493,638	461,153	385,709	586,506	524,400	485,970	499,990	346,917	276,005	304,278	322,767
Total current liabilities	US$ in thousands	460,452	384,337	400,182	405,172	470,722	519,106	343,798	334,770	410,730	344,982	344,855	335,096	348,568	321,111	300,706	290,578	357,912	290,734	296,401	303,090
Current ratio		0.78	0.69	0.67	0.86	1.02	1.24	1.31	1.42	1.40	1.43	1.34	1.15	1.68	1.63	1.62	1.72	0.97	0.95	1.03	1.06

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $357,778K ÷ $460,452K
= 0.78

The current ratio of Dine Brands Global Inc has been fluctuating over the past eight quarters. In Q4 2023, the current ratio was 0.78, which indicates that the company had $0.78 in current assets for every $1 in current liabilities. This represents a decrease from the previous quarter's current ratio of 0.86 in Q1 2023.

The downward trend in the current ratio from Q1 2023 to Q4 2023 may raise concerns about the company's short-term liquidity and ability to meet its current obligations. A current ratio below 1 implies that the company may have difficulties in paying off its short-term debts with its current assets alone.

Comparing the current ratio of Q4 2023 to historical data, it is significantly lower than the ratios in Q4 2022 (1.02), Q3 2022 (1.24), and Q2 2022 (1.31). This suggests a deterioration in the company's short-term liquidity position over the past year.

Management should closely monitor the current ratio and take action to improve liquidity by increasing current assets or reducing current liabilities to ensure the company's ability to meet its short-term obligations.