Brinker International Inc (EAT)

Inventory turnover

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Cost of revenue	US$ in thousands	1,619,100	1,563,000	1,424,600	1,182,700	1,207,600
Inventory	US$ in thousands	34,500	34,500	35,600	28,900	27,300
Inventory turnover		46.93	45.30	40.02	40.92	44.23

June 30, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $1,619,100K ÷ $34,500K
= 46.93

Brinker International Inc's inventory turnover has shown a consistent trend over the past five years, with values ranging from 40.02 to 46.93. This ratio indicates how efficiently the company manages its inventory by measuring how many times it sells and replaces its inventory within a specific period.

The inventory turnover ratio has increased steadily over the years, suggesting that Brinker International Inc has been able to sell its inventory more frequently in recent years. A higher turnover ratio is generally considered positive as it indicates that the company is efficiently managing its inventory levels and turning over stock more quickly, which can lead to lower carrying costs and potential for increased profitability.

The company's inventory turnover ratios are significantly above the industry average, indicating strong inventory management practices. Investors and stakeholders may view this positively, as it reflects efficient operations and effective inventory control strategies within the organization.

Overall, Brinker International Inc's inventory turnover analysis suggests that the company has been successfully managing its inventory levels and improving its efficiency in inventory turnover over the past five years.