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.