Brinker International Inc (EAT)

Fixed asset turnover

		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
Revenue (ttm)	US$ in thousands	4,415,100	4,282,400	4,245,300	4,190,200	4,133,200	4,079,200	3,976,400	3,883,200	3,804,100	3,791,200	3,639,200	3,474,100	3,337,800	2,892,400	2,924,000	3,032,600	3,078,500	3,349,400	3,328,700	3,250,100
Property, plant and equipment	US$ in thousands	879,700	849,400	818,800	815,900	808,300	819,800	826,900	823,100	816,700	818,400	840,300	799,400	774,800	751,600	765,900	782,000	805,300	832,100	823,000	840,000
Fixed asset turnover		5.02	5.04	5.18	5.14	5.11	4.98	4.81	4.72	4.66	4.63	4.33	4.35	4.31	3.85	3.82	3.88	3.82	4.03	4.04	3.87

June 30, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $4,415,100K ÷ $879,700K
= 5.02

Fixed asset turnover is a financial ratio used to evaluate a company's efficiency in generating revenue from its investment in fixed assets. A higher fixed asset turnover indicates better utilization of these assets to generate sales.

Looking at Brinker International Inc's fixed asset turnover over the past 20 quarters, the ratio has exhibited fluctuations but generally shows a positive trend. The ratio ranged from a low of 3.82 to a high of 5.18 during this period.

From December 2019 to March 2021, there was a gradual increase in the fixed asset turnover, indicating improved efficiency in generating revenue from fixed assets. This could be attributed to better management of assets or increased sales relative to the investment in fixed assets.

However, from March 2021 to December 2022, there was a slight decrease in the ratio, suggesting a potential slowdown in revenue generation compared to the value of fixed assets. This may warrant a closer examination of the company's operations during this period.

From December 2022 to June 2024, there was a gradual increase in the fixed asset turnover, reaching a peak of 5.18 in December 2023. This indicates a rebound in efficiency in utilizing fixed assets to generate revenue.

Overall, while there have been fluctuations, the general trend in Brinker International Inc's fixed asset turnover suggests a positive correlation between the company's investment in fixed assets and its ability to generate revenue from those assets. It would be essential for stakeholders to monitor this ratio regularly to assess the company's operational efficiency and asset utilization.