Brinker International Inc (EAT)
Quick ratio
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 64,600 | 15,100 | 13,500 | 23,900 | 43,900 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 60,600 | 60,900 | 70,900 | 88,200 | 87,700 |
| Total current liabilities | US$ in thousands | 622,300 | 535,900 | 558,000 | 571,600 | 497,900 |
| Quick ratio | 0.20 | 0.14 | 0.15 | 0.20 | 0.26 |
June 30, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($64,600K
+ $—K
+ $60,600K)
÷ $622,300K
= 0.20
The quick ratio of Brinker International Inc has shown fluctuations over the past five years. The quick ratio, which measures the company's ability to cover its short-term obligations with its most liquid assets, was at its lowest in Jun 30, 2023, at 0.14. This indicates a potential liquidity concern as the company had only $0.14 in liquid assets to cover each dollar of its current liabilities at that time.
However, in the following years, the quick ratio improved slightly, reaching 0.15 in Jun 30, 2022, and 0.20 in both Jun 30, 2021 and Jun 30, 2024. While the ratio in these years still suggests that the company may face challenges in meeting its short-term obligations, the gradual increase indicates some improvement in liquidity position.
It is worth noting that the quick ratio was at its highest in Jun 30, 2020, at 0.26, indicating the company had $0.26 in liquid assets for each dollar of current liabilities. This suggests a stronger liquidity position for Brinker International Inc in that particular year.
Overall, the trend in the quick ratio of Brinker International Inc shows variability, with some improvements in recent years compared to 2023. However, the company may still need to focus on enhancing its liquidity position to ensure it can meet its short-term obligations effectively.
Peer comparison
Jun 30, 2024