Brinker International Inc (EAT)

Cash ratio

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Cash and cash equivalents	US$ in thousands	64,600	15,100	13,500	23,900	43,900
Short-term investments	US$ in thousands	—	—	—	—	—
Total current liabilities	US$ in thousands	622,300	535,900	558,000	571,600	497,900
Cash ratio		0.10	0.03	0.02	0.04	0.09

June 30, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($64,600K + $—K) ÷ $622,300K
= 0.10

The cash ratio of Brinker International Inc has fluctuated over the past five years, ranging from 0.02 to 0.10. The cash ratio measures a company's ability to cover its current liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term obligations using cash on hand.

In 2024, the cash ratio has significantly improved to 0.10 from 0.03 in 2023, indicating a substantial increase in the company's liquidity position. This suggests that Brinker International Inc has a greater ability to cover its short-term liabilities with its available cash reserves in the most recent fiscal year.

Although the cash ratio was lower in 2022 and 2021 at 0.02 and 0.04, respectively, it increased to 0.09 in 2020. This fluctuation in the cash ratio over the years may indicate varying levels of cash availability and management of short-term liquidity within the company.

Overall, Brinker International Inc's cash ratio has shown improvement in 2024 compared to previous years, suggesting a strengthened liquidity position that may help the company navigate its short-term financial obligations efficiently.