Brinker International Inc (EAT)

Quick 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
Cash	US$ in thousands	64,600	15,500	22,700	14,400	15,100	13,800	14,700	19,500	13,500	12,900	15,600	31,200	23,900	63,600	64,100	58,800	43,900	167,200	12,000	29,000
Short-term investments	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Receivables	US$ in thousands	60,600	48,000	79,500	50,900	60,900	72,600	95,300	63,200	70,900	65,600	98,800	85,100	88,200	98,100	111,200	89,900	87,700	58,000	112,600	49,700
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
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

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, also known as the acid-test ratio, measures a company's ability to pay its short-term obligations using its most liquid assets. A higher quick ratio indicates a better ability to cover short-term liabilities.

Analyzing the quick ratio of Brinker International Inc over the past few quarters shows fluctuations in the company's liquidity position. The quick ratio ranged from a low of 0.11 to a high of 0.43 during the period under review.

In recent quarters, the quick ratio has been relatively low, ranging from 0.11 to 0.20, indicating a lower ability to meet short-term liabilities with liquid assets alone. This may raise concerns about the company's short-term liquidity position.

It is notable that the quick ratio reached its peak of 0.43 in Q4 2019 but has since declined and fluctuated at lower levels. The decreasing trend in the quick ratio may suggest potential challenges in meeting short-term obligations with available liquid assets.

Overall, the analysis of Brinker International Inc's quick ratio highlights the importance of monitoring liquidity levels and the company's ability to manage short-term obligations effectively.