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.
Peer comparison
Jun 30, 2024