Brinker International Inc (EAT)

Current ratio

		Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
Total current assets	US$ in thousands	207,000	234,100	183,300	201,200	207,200
Total current liabilities	US$ in thousands	675,600	622,300	535,900	558,000	571,600
Current ratio		0.31	0.38	0.34	0.36	0.36

June 30, 2025 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $207,000K ÷ $675,600K
= 0.31

The current ratio of Brinker International Inc. over the specified periods indicates a generally low liquidity position, reflective of the company’s ability to meet its short-term obligations with its short-term assets. As of June 30, 2021 and June 30, 2022, the current ratio stood at 0.36, suggesting that the company had only 36 cents in current assets for every dollar of current liabilities, which is significantly below the generally accepted threshold of 1.0 for a healthy liquidity profile.

This pattern persisted with the ratio remaining unchanged at 0.36 in June 2022, revealing consistent liquidity levels during that period. A slight decline is observed by June 30, 2023, where the ratio dropped marginally to 0.34, further indicating a marginal reduction in the company's ability to efficiently satisfy its short-term obligations through its current assets.

However, a slight improvement is evident in June 30, 2024, when the current ratio increased to 0.38, implying a modest enhancement in liquidity, yet still remaining below the 0.5 mark, which typically indicates a fragile liquidity position. Conversely, by June 30, 2025, the current ratio declined again to 0.31, suggesting a deterioration in short-term liquidity over that period.

Overall, the trend demonstrates that Brinker International Inc. has maintained a consistently low current ratio across the analyzed years, with only minor fluctuations. This persistent low ratio underscores potential liquidity concerns, as current assets are insufficient to fully cover current liabilities without the need to liquidate receivables or inventory or secure additional short-term financing. The company's liquidity profile warrants close monitoring to assess the implications for operational flexibility and financial stability.