Brinker International Inc (EAT)
Solvency ratios
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | — | — | — | — |
| Debt-to-equity ratio | 0.00 | — | — | — | — |
| Financial leverage ratio | 65.81 | — | — | — | — |
Based on the provided data for Brinker International Inc, the solvency ratios exhibit a consistent trend of zero debt-based ratios (debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio) from June 30, 2020, to June 30, 2024. This suggests that the company has been financing its operations without relying on debt during this period.
Additionally, the financial leverage ratio for Brinker International Inc increased significantly from 65.81 in June 30, 2020, to a higher value in June 30, 2024. The financial leverage ratio indicates the proportion of the company's assets that are financed by debt, and the increase in this ratio may indicate a higher reliance on debt financing over time.
Overall, the consistently low debt-based ratios coupled with the increase in the financial leverage ratio suggest that Brinker International Inc has maintained a strong solvency position by managing its debt levels prudently while potentially leveraging debt to support its operations and growth.
Coverage ratios
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 3.54 | 2.65 | 3.50 | 3.58 | 1.08 |
The interest coverage ratio for Brinker International Inc has shown variability over the past five years. In the most recent period ending June 30, 2024, the interest coverage ratio was 3.54, indicating the company's ability to cover its interest expenses 3.54 times over with its earnings before interest and taxes (EBIT). This represents an improvement compared to the previous year where the ratio was 2.65.
In general, an interest coverage ratio above 1 indicates that a company is generating enough operating income to cover its interest expenses. Brinker's interest coverage ratios for the past five years have consistently been above 1, reflecting a solid ability to meet its interest obligations from operating profits.
It is noteworthy that the significant increase in the interest coverage ratio from 1.08 in 2020 to 3.54 in 2024 suggests a substantial enhancement in the company's ability to service its debt. This improvement could be attributed to various factors such as increased profitability, operational efficiency, or effective debt management.
Overall, Brinker International Inc's interest coverage has displayed positive trends in recent years, indicating a strengthening financial position in terms of its ability to meet interest payments with operating income.