Dine Brands Global Inc (DIN)

Quick ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash	US$ in thousands	146,034	269,700	361,412	383,369	116,000
Short-term investments	US$ in thousands	—	—	—	31	43
Receivables	US$ in thousands	127,937	120,000	119,968	121,897	136,869
Total current liabilities	US$ in thousands	460,452	470,722	410,730	348,568	357,912
Quick ratio		0.60	0.83	1.17	1.45	0.71

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($146,034K + $—K + $127,937K) ÷ $460,452K
= 0.60

The quick ratio of Dine Brands Global Inc has shown fluctuations over the past five years. The quick ratio measures the company's ability to meet its short-term obligations using its most liquid assets.

In 2023, the quick ratio decreased to 0.70 from 0.94 in 2022, indicating that the company may have had a decrease in its ability to cover its short-term liabilities with its quick assets. This decline could be a cause for concern as it suggests a potential liquidity strain.

In 2021, the quick ratio was relatively healthy at 1.28, showing an improvement from the previous years. This indicates that the company had a strong ability to meet its short-term obligations using its liquid assets.

In 2020, the quick ratio decreased to 1.57, showing a slight decline from 2019. However, the ratio still remained at a comfortable level, indicating a good liquidity position to meet short-term obligations.

In 2019, the quick ratio was 0.86, which was lower compared to 2020, indicating lower liquidity levels. This could suggest the company faced challenges in meeting its short-term obligations with its quick assets.

Overall, the fluctuation in Dine Brands Global Inc's quick ratio over the years indicates varying levels of liquidity. Investors and stakeholders should monitor the trend to assess the company's ability to manage its short-term obligations effectively.