Brinker International Inc (EAT)

Current ratio

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
Total current assets US$ in thousands 234,100 170,900 211,300 177,100 183,300 213,400 237,200 209,800 201,200 188,000 220,600 217,300 207,200 252,400 265,800 239,600 224,400 315,300 224,300 173,700
Total current liabilities US$ in thousands 622,300 579,100 590,000 541,600 535,900 585,700 573,500 573,600 558,000 583,100 569,400 547,200 571,600 577,800 520,300 509,500 497,900 520,000 552,400 516,400
Current ratio 0.38 0.30 0.36 0.33 0.34 0.36 0.41 0.37 0.36 0.32 0.39 0.40 0.36 0.44 0.51 0.47 0.45 0.61 0.41 0.34

June 30, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $234,100K ÷ $622,300K
= 0.38

The current ratio of Brinker International Inc has displayed some fluctuation over the past eight quarters, ranging from a low of 0.30 to a high of 0.51. The current ratio measures the company's ability to meet its short-term obligations with its current assets. A higher current ratio indicates a better ability to cover short-term liabilities.

In the most recent quarter, the current ratio stood at 0.38, indicating that the company had $0.38 in current assets for every $1 of current liabilities. While this shows a slight improvement from the previous quarter's ratio of 0.30, the current ratio is still relatively low, suggesting potential liquidity challenges.

It is important to monitor the trend of the current ratio over time to assess how effectively the company is managing its short-term liquidity. A sustained increase in the current ratio would be a positive sign, indicating improved financial health and a stronger ability to fulfill its short-term obligations. Additionally, a current ratio below 1 may signal that the company is relying heavily on short-term borrowing or struggling to convert its current assets into cash efficiently.