Brinker International Inc (EAT)
Cash conversion cycle
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 7.78 | 8.06 | 9.12 | 8.92 | 8.25 |
| Days of sales outstanding (DSO) | days | 5.01 | 5.38 | 6.80 | 9.64 | 10.40 |
| Number of days of payables | days | 36.20 | 29.35 | 34.41 | 39.41 | 31.71 |
| Cash conversion cycle | days | -23.42 | -15.92 | -18.49 | -20.85 | -13.06 |
June 30, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 7.78 + 5.01 – 36.20
= -23.42
The cash conversion cycle of Brinker International Inc has shown variability over the past five years. The company effectively managed its cash conversion cycle in all years, consistently maintaining negative values, indicating efficient cash flow management.
The trend shows that the company has been gradually improving its cash conversion cycle efficiency from -13.06 days in 2020 to -23.42 days in 2024. This suggests that Brinker has been speeding up the rate at which it converts its investments in inventory into cash receipts from customers, reflecting potentially improved inventory management and quicker collection of receivables.
The negative values indicate that Brinker International is able to generate cash from its operations before having to pay suppliers, which is a positive sign of operational efficiency. Overall, the company has demonstrated a consistent ability to efficiently manage its cash conversion cycle, which is beneficial for its working capital management and overall financial health.
Peer comparison
Jun 30, 2024