Dine Brands Global Inc (DIN)

Liquidity 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
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
Quick ratio 0.60 0.48 0.47 0.68 0.83 0.86 1.03 1.16 1.17 1.15 1.04 0.86 1.45 1.34 1.34 1.46 0.71 0.66 0.76 0.76
Cash ratio 0.32 0.26 0.24 0.45 0.57 0.68 0.77 0.88 0.88 0.88 0.75 0.54 1.10 0.96 0.93 1.19 0.32 0.35 0.43 0.44

Dine Brands Global Inc's liquidity ratios have shown a declining trend over the quarters in focus. The current ratio, which indicates the company's ability to cover its short-term liabilities with its current assets, has decreased from 1.42 in Q1 2022 to 0.78 in Q4 2023. This decline suggests a weakening liquidity position and may raise concerns about the company's ability to meet its short-term obligations.

The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, has also decreased over the quarters. It moved from 1.28 in Q1 2022 to 0.70 in Q4 2023, indicating a decline in the company's ability to meet its short-term liabilities without relying on inventory.

The cash ratio, which measures the company's ability to cover its current liabilities with its cash and cash equivalents, has decreased consistently from 1.00 in Q1 2022 to 0.42 in Q4 2023. A decreasing cash ratio may suggest that the company has less cash available to cover its short-term obligations, which could potentially lead to liquidity challenges.

Overall, the declining trend in all three liquidity ratios indicates that Dine Brands Global Inc may be facing liquidity pressures. It is essential for the company to closely monitor its liquidity position and take necessary steps to improve its ability to meet its short-term obligations.

Additional liquidity measure

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
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

Dine Brands Global Inc's cash conversion cycle has shown fluctuating trends over the past eight quarters. The cash conversion cycle represents the time it takes for a company to convert its investments in inventory and accounts receivable into cash flow from sales.

In Q4 2023, the company's cash conversion cycle was -47.02 days, indicating that they were able to convert inventory and receivables into cash faster than in previous quarters. This was an improvement from Q3 2023, where the cycle was -39.38 days.

Looking at a longer time frame, there has been a general downward trend in the cash conversion cycle from Q1 2022 to Q4 2023. This suggests that Dine Brands Global Inc has been managing its working capital more efficiently over time, translating into quicker cash realization from its operational activities.

Overall, a negative cash conversion cycle indicates that the company is able to generate cash from its sales before having to pay its suppliers, which can be a favorable position from a liquidity and cash flow perspective. It is important for Dine Brands Global Inc to continue monitoring and managing its working capital effectively to sustain its cash conversion cycle improvements.