Brinker International Inc (EAT)

Payables 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
Payables	US$ in thousands	160,600	125,700	134,300	127,700	104,900
Payables turnover		10.08	12.43	10.61	9.26	11.51

June 30, 2024 calculation

Payables turnover = Cost of revenue ÷ Payables
= $1,619,100K ÷ $160,600K
= 10.08

Brinker International Inc's payables turnover has fluctuated over the past five years, ranging from a low of 9.26 in June 2021 to a high of 12.43 in June 2023. The payables turnover ratio indicates the company's ability to efficiently manage its trade payables by measuring how many times during a period the company pays off its suppliers. A higher payables turnover ratio typically indicates that the company is paying off its suppliers more frequently, which can be a positive indicator of strong supplier relationships and effective working capital management.

In the case of Brinker International Inc, the payables turnover ratio has generally been above 10 over the past five years, with the exception of June 2021. This suggests that the company has been able to effectively manage its trade payables and maintain relatively efficient payment practices. However, the fluctuations in the ratio could indicate changes in the company's purchasing and payment policies, supplier relationships, or overall working capital management strategies. It is important for investors and analysts to closely monitor these trends to assess the company's financial health and operational efficiency.