Restaurant Brands International has a current ratio of 0.78. It indicates that the company may have difficulty meeting its current obligations. Low values, however, do not indicate a critical problem. If Restaurant Brands International has good long-term prospects, it may be able to borrow against those prospects to meet current obligations.
The historical rank and industry rank for Restaurant Brands International's Current Ratio or its related term are showing as below:
QSR'
s Current Ratio Range Over the Past 10 Years
Min: 0.78 Med: 1.24 Max: 3.45
Current: 0.78
During the past 12 years, Restaurant Brands International's highest Current Ratio was 3.45. The lowest was 0.78. And the median was 1.24.
QSR's Current Ratio is ranked worse than 62.04% of 353
companies
in the Restaurants industry
Industry Median: 1.01
vs QSR: 0.78
Restaurant Brands International Current Ratio Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
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Restaurant Brands International Current Ratio Chart
Competitive Comparison of Restaurant Brands International's Current Ratio
For the Restaurants subindustry, Restaurant Brands International's Current Ratio, along with its competitors' market caps and Current Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Restaurant Brands International's Current Ratio Distribution in the Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Restaurant Brands International's Current Ratio distribution charts can be found below:
* The bar in red indicates where Restaurant Brands International's Current Ratio falls into.
Restaurant Brands International Current Ratio Calculation
The current ratio is mainly used to give an idea of the company's ability to pay back its short-term liabilities with its short-term assets.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Restaurant Brands International (NYSE:QSR) Current Ratio Explanation
The current ratio can give a sense of the efficiency of a company's operating cycle or its ability to turn its product into cash. Companies that have trouble getting paid on their receivables or have long inventory turnover can run into liquidity problems because they are unable to alleviate their obligations. Because business operations differ in each industry, it is always more useful to compare companies within the same industry.
Acceptable current ratios vary from industry to industry and are generally between 1 and 3 for healthy businesses.
The higher the current ratio, the more capable the company is of paying its obligations. A ratio under 1 suggests that the company would be unable to pay off its obligations if they came due at that point. While this shows the company is not in good financial health, it does not necessarily mean that it will go bankrupt - as there are many ways to access financing - but it is definitely not a good sign.
If all other things were equal, a creditor, who is expecting to be paid in the next 12 months, would consider a high current ratio to be better than a low current ratio, because a high current ratio means that the company is more likely to meet its liabilities which fall due in the next 12 months.
Restaurant Brands International Current Ratio Related Terms
Thank you for viewing the detailed overview of Restaurant Brands International's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Restaurant Brands International Business Description
Restaurant Brands International is one of the largest restaurant companies in the world, with approximately $43 billion in 2023 systemwide sales across a footprint that spanned more than 31,000 restaurants and more than 100 countries. The firm generates revenue primarily from retail sales at its company-owned restaurants, royalty fees and lease income from franchised stores, and from its Tim Hortons supply chain operations. Formed in 2014 after 3G Capital's acquisition of Tim Hortons International, the RBI portfolio is split among Burger King (7,144 units), Tim Hortons (4,525 units), Popeyes Louisiana Kitchen (3,394 units), Firehouse Subs (1,265 units), and international franchise units of those banners (14,742) as of year-end 2023.
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