Brinker International Inc (EAT)

Current ratio

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
Total current assets US$ in thousands 207,000 189,100 210,700 183,600 234,100 170,900 211,300 177,100 183,300 213,400 237,200 209,800 201,200 188,000 220,600 217,300 207,200 252,400 265,800 265,800
Total current liabilities US$ in thousands 675,600 667,600 644,300 577,500 622,300 579,100 590,000 541,600 535,900 585,700 573,500 573,600 558,000 583,100 569,400 547,200 571,600 577,800 520,300 520,300
Current ratio 0.31 0.28 0.33 0.32 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 0.51

June 30, 2025 calculation

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

The analysis of Brinker International Inc.'s current ratio over the specified period reveals a pattern of persistent liquidity constraints. The current ratio, which measures a company's ability to meet its short-term obligations with its short-term assets, consistently remained below 1.0 throughout the observed timeframe, indicating that the company has generally had limited liquidity relative to its current liabilities.

Specifically, the data shows the current ratio starting at 0.51 at the end of 2020 (both December 23 and December 31) and declining to a low of approximately 0.30 during the first quarter of 2024. Although minor fluctuations are noticeable, the overall trend is toward a modest increase in some periods, such as reaching 0.38 in June 2024, before again declining to around 0.28 by March 2025. The consistent values below 0.5 over the extended period suggest that the company has often maintained less than half of its current liabilities in liquid assets, which could be indicative of liquidity management challenges.

This sustained low current ratio points to potential liquidity concerns, implying that Brinker International may rely heavily on non-current assets, increased operational efficiencies, or access to external financing to meet short-term obligations. The relatively narrow range of ratios (from a high of approximately 0.51 to a low of 0.28) signifies limited variability but underscores a persistent position of liquidity risk. Investors and stakeholders may interpret this as a signal to monitor the company's ability to generate adequate short-term cash flows or the likelihood of short-term financial stress.

Overall, the historical data indicates that Brinker International's current ratio has remained consistently below one, reflecting ongoing liquidity management challenges. The company’s current assets have generally been insufficient to cover its current liabilities without additional sources of liquidity or operational adjustments.