Brinker International Inc (EAT)

Cash conversion cycle

		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
Cash conversion cycle	days	-23.42	-24.39	-20.71	-21.57	-15.93	-23.79	-16.26	-21.04	-18.49	-19.99	-14.45	-15.63	-20.85	-17.64	-9.78	-11.74	-13.05	-24.56	-14.62	-28.08

June 30, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 7.78 + 5.01 – 36.21
= -23.42

The cash conversion cycle of Brinker International Inc, a measure of the time it takes for the company to convert its investments in inventory and other resources into cash flows from sales, fluctuated over the past quarters. The company's cash conversion cycle ranged from a low of -28.08 days to a high of -9.78 days.

A negative cash conversion cycle indicates that Brinker International Inc was efficiently managing its working capital during these periods. It means that the company was able to collect cash from its sales before paying its suppliers for inventory, resulting in a net positive cash flow cycle.

Overall, the trend in the cash conversion cycle of Brinker International Inc suggests a generally strong performance in managing its operational cash flow and working capital efficiency over the analyzed periods. There were fluctuations, but the company showed the ability to convert its resources into cash effectively.