Berry Global Group Inc (BERY)
Activity ratios
Short-term
Turnover ratios
| Sep 30, 2024 | 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 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 6.95 | 6.68 | 6.68 | 6.77 | 7.45 | 6.88 | 6.61 | 6.72 | 7.36 | 6.84 | 6.86 | 6.41 | 6.59 | 6.66 | 6.91 | 6.95 | 8.06 | 7.89 | 6.87 | 5.85 |
| Receivables turnover | 7.68 | 7.49 | 7.72 | 8.34 | 8.10 | 7.47 | — | 8.69 | 8.19 | — | — | — | 7.37 | — | — | — | — | — | — | — |
| Payables turnover | 6.42 | 9.03 | 8.50 | 10.11 | 7.59 | 10.26 | 9.13 | 10.57 | 7.39 | 8.92 | 8.16 | 8.27 | 6.16 | 7.42 | 7.64 | 8.75 | 9.17 | 10.60 | 7.62 | 7.78 |
| Working capital turnover | 13.65 | 6.54 | 7.13 | 7.91 | 6.98 | 6.48 | 6.13 | 6.35 | 6.28 | 7.07 | 6.56 | 7.06 | 7.26 | 7.72 | 6.84 | 7.12 | 7.16 | 6.29 | 5.80 | 6.09 |
The activity ratios of Berry Global Group Inc provide insights into how efficiently the company manages its assets and operations.
1. Inventory turnover ratios have been relatively stable over time, averaging around 6.8 to 7.4. This indicates that Berry Global is able to sell and replace its inventory multiple times a year, which is a positive sign of its inventory management efficiency.
2. Receivables turnover has also been consistent, averaging around 7.5 to 8.3, showing that the company collects its accounts receivable effectively, converting them into cash quickly. However, there is missing data for certain periods which limits the trend analysis.
3. Payables turnover ratios show fluctuation but have generally been between 6.1 to 10.6, which suggests variable payment terms with suppliers. A higher turnover may indicate the company is efficiently managing its payables.
4. Working capital turnover ratios have varied, ranging from 5.8 to 13.7, indicating how effectively the company generates revenue relative to its working capital. The fluctuations suggest changes in operational efficiency over time.
Overall, the stability in inventory turnover and receivables turnover ratios, along with varying payables turnover and working capital turnover, reflect Berry Global's ability to manage its assets and operations effectively, although closer analysis of trends and industry comparables would be beneficial for a more in-depth assessment.
Average number of days
| Sep 30, 2024 | 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 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 52.54 | 54.63 | 54.62 | 53.89 | 49.01 | 53.09 | 55.21 | 54.34 | 49.58 | 53.35 | 53.20 | 56.96 | 55.39 | 54.84 | 52.82 | 52.55 | 45.26 | 46.28 | 53.15 | 62.37 |
| Days of sales outstanding (DSO) | days | 47.54 | 48.72 | 47.26 | 43.74 | 45.07 | 48.83 | — | 42.01 | 44.54 | — | — | — | 49.53 | — | — | — | — | — | — | — |
| Number of days of payables | days | 56.89 | 40.41 | 42.94 | 36.09 | 48.10 | 35.56 | 39.99 | 34.53 | 49.39 | 40.94 | 44.72 | 44.15 | 59.28 | 49.19 | 47.80 | 41.71 | 39.80 | 34.45 | 47.90 | 46.91 |
Days of inventory on hand (DOH) indicates the average number of days it takes for Berry Global Group Inc to sell its inventory. The trend in DOH has fluctuated over the periods, ranging from a low of 45.26 days to a high of 62.37 days. The current DOH of 52.54 days suggests that Berry Global is maintaining a moderate level of inventory relative to historical periods.
Days of sales outstanding (DSO) measures how quickly Berry Global collects its accounts receivable. The trend in DSO has varied, with recent data showing a DSO of 47.54 days. This implies that Berry Global takes around 47.54 days to collect its receivables, which is slightly lower than some previous periods and indicates efficient management of receivables.
Number of days of payables signifies how long Berry Global takes to pay its suppliers. The trend in payables days shows fluctuations, with the current figure at 56.89 days. This indicates that Berry Global is taking nearly 56.89 days to settle its payables, which is higher compared to some earlier periods.
Overall, Berry Global Group Inc's activity ratios suggest that while the company is managing its inventory and receivables efficiently, there may be room for improvement in its payment cycle to suppliers.
Long-term
| Sep 30, 2024 | 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 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 2.69 | 2.68 | 2.68 | 2.68 | 2.78 | 2.81 | 2.94 | 3.11 | 3.35 | 3.23 | 3.16 | 3.06 | 2.96 | 2.79 | 2.66 | 2.54 | 2.57 | 2.61 | 2.41 | 2.03 |
| Total asset turnover | 0.74 | 0.76 | 0.77 | 0.77 | 0.77 | 0.79 | 0.82 | 0.85 | 0.86 | 0.87 | 0.84 | 0.82 | 0.77 | 0.75 | 0.72 | 0.70 | 0.70 | 0.70 | 0.63 | 0.57 |
The long-term activity ratios of Berry Global Group Inc indicate how efficiently the company is utilizing its assets to generate sales.
1. Fixed Asset Turnover:
- The fixed asset turnover ratio measures how effectively the company is using its fixed assets to generate revenue.
- Berry Global Group Inc's fixed asset turnover has been relatively stable over the period, ranging from 2.03 to 3.35.
- A higher fixed asset turnover ratio indicates better efficiency in utilizing fixed assets to generate sales.
- The company's fixed asset turnover ratio has generally been above 2.5, which is a positive sign of productivity and asset utilization.
2. Total Asset Turnover:
- The total asset turnover ratio shows how efficiently the company is using all its assets to generate sales.
- Berry Global Group Inc's total asset turnover ratio has fluctuated between 0.57 and 0.87 during the period under review.
- A higher total asset turnover ratio suggests better efficiency in utilizing all assets to generate revenue.
- The company's total asset turnover ratio has generally been around 0.70 or higher, indicating that Berry Global Group Inc is effectively making use of its assets to drive sales.
Overall, based on the long-term activity ratios, Berry Global Group Inc has been maintaining a good level of asset utilization efficiency, which is a positive indicator of the company's operational performance and effectiveness in generating revenue.