Brinker International Inc (EAT)

Days of sales outstanding (DSO)

Jun 30, 2024 Mar 31, 2024 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 23, 2020 Sep 23, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019
Receivables turnover 72.86 89.22 53.40 82.32 67.87 56.19 41.73 61.44 53.65 57.79 36.83 40.82 37.84 29.48 26.29 33.73 35.10 57.75 29.56 65.39
DSO days 5.01 4.09 6.84 4.43 5.38 6.50 8.75 5.94 6.80 6.32 9.91 8.94 9.64 12.38 13.88 10.82 10.40 6.32 12.35 5.58

June 30, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 72.86
= 5.01

Days Sales Outstanding (DSO) is a key metric that indicates the average number of days it takes for a company to collect payment after making a sale. A lower DSO generally suggests a more efficient collection process and better cash flow management.

Analyzing Brinker International Inc's DSO over the past few quarters, we observe fluctuations in the metric. For the most recent quarter ending June 30, 2024, the DSO was 5.01 days, showing an improvement from the previous quarter's 4.09 days. This reduction indicates that the company has been able to collect payments more quickly from its customers.

Looking at historical trends, we can see that Brinker International Inc's DSO has exhibited some variability over time. The company experienced a peak DSO of 13.88 days in March 2021, followed by a significant decrease to 5.58 days in June 2020. A lower DSO in subsequent quarters suggests enhanced efficiency in managing accounts receivable and liquidity.

Overall, a declining trend in DSO is generally a positive signal, indicating effective credit management and timely collection of receivables. However, it is essential to monitor this metric alongside other financial indicators to gain a comprehensive understanding of Brinker International Inc's overall performance and financial health.