Brinker International Inc (EAT)

Cash conversion cycle

		Jun 30, 2025	Mar 31, 2025	Dec 31, 2024	Sep 30, 2024	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 31, 2020	Dec 23, 2020
Days of inventory on hand (DOH)	days	—	9.48	7.99	7.88	8.32	8.51	8.88	8.78	9.05	9.01	9.50	9.66	9.94	10.03	10.33	10.09	11.92	12.46	15.30	5.78
Days of sales outstanding (DSO)	days	—	4.28	6.36	4.35	5.01	4.09	6.84	4.43	5.38	6.50	8.75	5.94	6.80	6.32	9.91	8.94	9.59	11.59	13.52	14.47
Number of days of payables	days	—	19.48	14.49	14.04	15.13	14.69	14.80	14.20	12.63	16.42	14.61	15.43	14.65	14.79	13.99	13.68	18.67	19.13	19.77	21.94
Cash conversion cycle	days	0.00	-5.73	-0.13	-1.81	-1.80	-2.09	0.92	-0.99	1.80	-0.92	3.64	0.17	2.09	1.55	6.25	5.35	2.83	4.92	9.05	-1.68

June 30, 2025 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= — + — – —
= 0.00

The analysis of Brinker International Inc.'s cash conversion cycle (CCC) over the period from December 2020 through June 2025 reveals significant fluctuations, with the cycle transitioning between positive and negative values and varying in magnitude.

Initially, in December 2020, the CCC was negative at -1.68 days, indicating that the company's cash inflows from receivables were ahead of its cash outflows for payables, suggesting an efficient liquidity management or fast collection and slow payment cycle at that time. However, by the end of 2020, the cycle shifted positive to 9.05 days, implying a period where the company took longer to convert its investments in inventory and receivables into cash than it took to pay its suppliers.

Throughout 2021, the CCC exhibited variability, fluctuating between positive and negative figures. For example, in March 2021, it was positive at 4.92 days, and it slightly decreased to 2.83 days by June 2021. This trend continued with some minor oscillations, reaching a peak of 6.25 days in December 2021.

In 2022, the CCC remained relatively short, staying close to zero, with values such as 1.55 days in March, 2.09 days in June, and reaching a near-neutral point at 0.17 days in September. Notably, a shift to a negative cycle occurred once again in March 2023 at -0.92 days, indicating a brief period where cash inflows outpaced cash outflows more significantly.

Moving into the subsequent periods, the cycle exhibited further negative values, exemplified by -2.09 days in March 2024, demonstrating an even more efficient cash flow position where collections might outpace payments. The negative trend intensified, with the cycle reaching -5.73 days in March 2025, which could reflect further improvements in receivables collection or delayed payables.

Overall, the data illustrates that Brinker International Inc.’s cash conversion cycle has experienced considerable volatility over the analyzed period, with multiple oscillations between positive and negative figures. The more recent trend indicates a tendency toward negative cycles, suggesting that the company is increasingly able to generate cash from its operations before settling its payables, potentially reflecting improved liquidity management or operational efficiencies. However, the significant fluctuations also highlight variability in working capital management strategies and operational performance across different periods.