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.