Brinker International Inc (EAT)
Fixed asset turnover
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 4,415,100 | 4,133,200 | 3,804,100 | 3,337,800 | 3,078,500 |
| Property, plant and equipment | US$ in thousands | 879,700 | 808,300 | 816,700 | 774,800 | 805,300 |
| Fixed asset turnover | 5.02 | 5.11 | 4.66 | 4.31 | 3.82 |
June 30, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $4,415,100K ÷ $879,700K
= 5.02
The fixed asset turnover ratio for Brinker International Inc has shown a consistent upward trend over the past five years, increasing from 3.82 in June 2020 to 5.02 in June 2024. This indicates that the company is generating more revenue from its fixed assets efficiently each year.
A fixed asset turnover ratio of 5.02 in June 2024 means that for every dollar invested in fixed assets, Brinker International Inc generated $5.02 in revenue. This reflects the company's ability to effectively utilize its fixed assets to generate sales.
The steady improvement in the fixed asset turnover ratio signifies that Brinker International Inc has been effectively managing its fixed assets to drive revenue growth. This efficiency can be attributed to factors such as operational improvements, better asset utilization, and effective capital allocation strategies.
Overall, the increasing trend in the fixed asset turnover ratio reflects positively on Brinker International Inc's operational efficiency and suggests that the company is making optimal use of its fixed assets to drive business performance.
Peer comparison
Jun 30, 2024