Berry Global Group Inc (BERY)

Liquidity ratios

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 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Current ratio 1.67 1.67 1.87 1.95 1.98 1.82 1.79 1.82 1.76 1.60 1.59 1.73 1.74 1.75 1.93 1.84 1.77 1.84 1.88 2.01
Quick ratio 1.05 1.02 1.02 0.30 1.04 1.12 0.20 0.23 0.22 0.93 0.28 0.34 0.37 0.34 0.45 0.43 0.32 1.59 0.22 0.31
Cash ratio 0.42 0.44 0.27 0.30 0.32 0.50 0.20 0.23 0.22 0.34 0.28 0.34 0.37 0.34 0.45 0.43 0.32 1.59 0.22 0.31

Berry Global Group Inc's liquidity ratios reflect a fluctuating trend over the past five quarters. The current ratio has ranged between 1.59 and 1.98, indicating that the company has maintained a strong ability to cover its current liabilities with current assets. The quick ratio, which is a more stringent measure of liquidity excluding inventory, shows greater variability ranging from 0.20 to 1.59. This indicates that Berry Global Group Inc may face challenges in meeting its short-term obligations without relying on inventory in some quarters.

The cash ratio, which measures the company's ability to cover current liabilities with its cash and cash equivalents, has exhibited significant volatility, ranging from 0.20 to 0.50. This suggests that Berry Global Group Inc may have periods of lower cash reserves relative to its current liabilities.

Overall, Berry Global Group Inc's liquidity position appears stable with a generally healthy current ratio, although the quick ratio and cash ratio show more variability, indicating potential areas of improvement in managing short-term obligations and cash reserves. Monitoring and managing cash flow and working capital efficiently would be crucial for the company to ensure continued liquidity and financial flexibility.

Additional liquidity measure

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 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Cash conversion cycle days 62.03 46.01 66.82 15.61 61.82 44.74 12.41 8.48 12.81 45.63 5.66 5.01 10.84 5.46 11.83 5.25 15.46 8.30 15.89 15.06

The cash conversion cycle of Berry Global Group Inc fluctuated throughout the periods analyzed. The cycle measures the time it takes for a company to convert its investments in inventory into cash received from sales. A longer cycle indicates that the company takes more time to collect cash from sales and manage its inventories.

In the most recent period ending December 31, 2023, the cash conversion cycle was 62.03 days, showing an increase from the previous quarter end. This suggests that the company took longer to convert its investments in inventory to cash during this period.

In comparison to historical data, the cash conversion cycle was notably higher in the quarter ending June 30, 2023, at 66.82 days, indicating a prolonged cycle that may have impacted the company's working capital management and liquidity.

Conversely, the company experienced a significantly shorter cash conversion cycle in the quarters ending June 30, 2022, and March 31, 2021, at 12.41 days and 5.01 days, respectively. These shorter cycles suggest improved efficiency in inventory management and cash collection during these periods.

Overall, fluctuations in the cash conversion cycle of Berry Global Group Inc indicate varying efficiency in managing working capital, inventory levels, and accounts receivable. Further analysis of the underlying factors driving these changes could provide insights into the company's operational effectiveness and financial performance.