Brinker International Inc (EAT)

Activity ratios

Short-term

Turnover ratios

	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
Inventory turnover	46.93	46.53	44.28	47.16	45.29	45.81	41.66	41.06	40.02	40.39	39.46	41.74	40.92	42.31	43.11	45.91	44.24	33.71	34.05	33.72
Receivables turnover	72.86	89.22	53.40	82.32	67.87	56.19	41.73	61.44	53.65	57.79	36.83	40.82	37.84	29.48	26.29	33.73	35.10	57.75	29.56	65.39
Payables turnover	10.08	10.05	10.20	10.82	12.43	9.54	10.81	10.17	10.61	10.33	10.86	10.96	9.26	9.45	11.36	11.96	11.51	8.75	9.69	8.21
Working capital turnover	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—

Brinker International Inc's activity ratios display a consistent trend over the past few quarters.

1. Inventory turnover: The company has maintained a high inventory turnover ratio, indicating efficient management of inventory levels. This ratio has ranged between 39.46 and 47.16, with the latest figure standing at 46.93. A high turnover ratio signifies that inventory is moving quickly, reflecting positively on the business's liquidity and sales effectiveness.

2. Receivables turnover: Brinker International Inc has shown varying receivables turnover ratios, with a range between 26.29 and 89.22. The latest figure is 72.86. A higher turnover ratio implies that the company is efficient in collecting receivables, enhancing cash flow and potentially minimizing bad debts.

3. Payables turnover: The payables turnover ratio for the company has been relatively stable, with values fluctuating between 8.21 and 12.43. The latest figure is 10.08. A consistent payables turnover ratio suggests that Brinker International is effectively managing its payment obligations to suppliers, potentially maintaining good relationships and optimizing working capital.

4. Working capital turnover: There is no data provided for the working capital turnover, which is an indicator of how efficiently working capital is used to generate sales. Given the absence of this metric, it is not possible to assess the efficiency of Brinker International Inc's utilization of working capital in generating revenue.

Overall, Brinker International Inc's activity ratios reflect effective management of inventory, receivables, and payables, emphasizing operational efficiency and potential financial stability.

Average number of days

		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
Days of inventory on hand (DOH)	days	7.78	7.84	8.24	7.74	8.06	7.97	8.76	8.89	9.12	9.04	9.25	8.74	8.92	8.63	8.47	7.95	8.25	10.83	10.72	10.82
Days of sales outstanding (DSO)	days	5.01	4.09	6.84	4.43	5.38	6.50	8.75	5.94	6.80	6.32	9.91	8.94	9.64	12.38	13.88	10.82	10.40	6.32	12.35	5.58
Number of days of payables	days	36.21	36.33	35.78	33.74	29.36	38.25	33.76	35.87	34.41	35.34	33.61	33.32	39.41	38.64	32.13	30.51	31.70	41.70	37.69	44.48

Brinker International Inc's activity ratios provide insights into the efficiency of its operations and management of working capital.

1. Days of Inventory on Hand (DOH):
- Brinker International's inventory management improved slightly in the most recent quarter, with the DOH decreasing to 7.78 days from 8.24 days in the previous quarter.
- The trend indicates that the company is managing its inventory levels more effectively, potentially reducing excess inventory holding costs.

2. Days of Sales Outstanding (DSO):
- Brinker International's DSO fluctuates over the quarters, but it decreased significantly in the current quarter to 5.01 days from 6.84 days in the previous quarter.
- A lower DSO suggests faster collection of receivables, indicating efficient credit and collection policies.

3. Number of Days of Payables:
- The number of days of payables for Brinker International has seen some fluctuation, but it increased in the most recent quarter to 36.21 days from 35.78 days in the previous quarter.
- A higher number of days of payables may indicate the company is taking longer to pay its suppliers, potentially improving its cash flow position.

Overall, Brinker International's activity ratios reflect improvements in inventory management and receivables collection, while also suggesting changes in its payment practices to suppliers. Investors and stakeholders may view these trends as positive indicators of the company's financial health and operational efficiency.

Long-term

	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
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
Total asset turnover	1.70	1.72	1.69	1.69	1.66	1.65	1.58	1.56	1.53	1.54	1.48	1.49	1.47	1.25	1.24	1.30	1.31	1.30	1.33	1.30

The fixed asset turnover ratio of Brinker International Inc has shown a consistent upward trend over the analyzed periods, indicating that the company is generating more revenue relative to its fixed assets. This suggests improved efficiency in utilizing its fixed assets to generate sales.

On the other hand, the total asset turnover ratio has been relatively stable with some fluctuations, indicating the company's ability to generate revenue from all its assets. The ratio of 1.70 as of June 30, 2024, signifies that for every dollar of total assets, Brinker International Inc generated $1.70 in revenue.

Overall, both ratios reflect positively on the company's operational efficiency and asset utilization, indicating effective management of resources to drive revenue generation.