Brinker International Inc (EAT)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Quick ratio | 0.20 | 0.11 | 0.17 | 0.12 | 0.14 | 0.15 | 0.19 | 0.14 | 0.15 | 0.13 | 0.20 | 0.21 | 0.20 | 0.28 | 0.34 | 0.29 | 0.26 | 0.43 | 0.23 | 0.15 |
| Cash ratio | 0.10 | 0.03 | 0.04 | 0.03 | 0.03 | 0.02 | 0.03 | 0.03 | 0.02 | 0.02 | 0.03 | 0.06 | 0.04 | 0.11 | 0.12 | 0.12 | 0.09 | 0.32 | 0.02 | 0.06 |
Brinker International Inc's liquidity ratios, specifically the current ratio, quick ratio, and cash ratio, show a fluctuating trend over the past few quarters. The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, has generally been below 1, indicating potential liquidity challenges. The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, has remained consistently lower than the current ratio, suggesting a lower level of immediate liquidity.
Furthermore, the cash ratio, which focuses only on the most liquid assets (cash and equivalents) compared to current liabilities, has also demonstrated volatility, with sporadic improvements followed by declines. This may indicate fluctuations in the company's ability to meet its short-term obligations using its most liquid assets.
Overall, the liquidity ratios for Brinker International Inc indicate a need for careful monitoring of its ability to manage short-term financial obligations. The company may need to focus on improving its liquidity position to ensure it can meet its financial obligations in a timely manner.
Additional liquidity measure
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | -23.42 | -24.39 | -20.71 | -21.57 | -15.93 | -23.79 | -16.26 | -21.04 | -18.49 | -19.99 | -14.45 | -15.63 | -20.85 | -17.64 | -9.78 | -11.74 | -13.05 | -24.56 | -14.62 | -28.08 |
The cash conversion cycle measures how long it takes for a company to convert its investments in inventory and other resources into cash flows from sales. A shorter cash conversion cycle indicates that the company is able to quickly generate cash from its operational activities.
Analyzing the cash conversion cycle of Brinker International Inc over the past years, we can observe fluctuations in the cycle. Generally, the company has managed to maintain a negative cash conversion cycle, indicating efficiency in managing its working capital.
In recent quarters, the cash conversion cycle has ranged from approximately -15 days to -25 days, with some variations in between. This suggests that Brinker International has been able to quickly convert its resources into cash generated from sales, which is a positive sign for the company's liquidity and operational efficiency.
It's essential for Brinker International to maintain a healthy and efficient cash conversion cycle, as it represents their ability to manage working capital effectively and optimize their cash flow generation process. Monitoring this metric over time can provide insights into how well the company is managing its resources and converting them into revenue.