Berry Global Group Inc (BERY)
Liquidity 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 1.25 | 1.82 | 1.74 | 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 |
| Quick ratio | 0.74 | 0.94 | 0.89 | 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 |
| Cash ratio | 0.30 | 0.22 | 0.21 | 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 |
The liquidity ratios of Berry Global Group Inc provide insights into the company's ability to meet its short-term financial obligations.
1. Current Ratio: The company's current ratio has fluctuated over the periods, ranging from 1.25 to 1.98. A current ratio above 1 indicates that Berry Global Group Inc has more current assets than current liabilities, suggesting a strong ability to pay off short-term obligations. However, there has been some variability in this ratio over time.
2. Quick Ratio: The quick ratio, also known as the acid-test ratio, provides a more stringent measure of liquidity as it excludes inventory from current assets. Berry Global Group Inc's quick ratio has shown significant variability, ranging from 0.20 to 1.12. A quick ratio below 1 may indicate potential difficulties in meeting short-term obligations without relying on inventory liquidation.
3. Cash Ratio: The cash ratio of Berry Global Group Inc has also fluctuated over time, ranging from 0.20 to 0.50. This ratio measures the company's ability to cover its current liabilities with available cash and cash equivalents. A higher cash ratio is generally favorable as it indicates a stronger ability to settle short-term obligations without relying on other current assets.
In summary, while the current ratio of Berry Global Group Inc generally indicates a sufficient level of liquidity, the quick ratio and cash ratio highlight fluctuations in the company's ability to meet short-term obligations solely with quick assets and cash reserves. It is important for investors and stakeholders to monitor these liquidity ratios to assess the company's short-term financial health and ability to withstand unexpected financial challenges.
Additional liquidity measure
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 43.19 | 62.94 | 58.93 | 61.54 | 45.98 | 66.36 | 15.22 | 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 |
The cash conversion cycle of Berry Global Group Inc has exhibited fluctuations over the past few quarters. The company's cash conversion cycle indicates the time it takes for the company to convert its investments in inventory and other resources into cash flow from sales.
In the most recent quarter, ending September 30, 2024, the cash conversion cycle was 43.19 days, indicating an improvement from the previous quarter. This suggests that the company may have managed its working capital more efficiently, resulting in a quicker conversion of inventory and receivables into cash.
However, looking back at the trend over the past few quarters, the cash conversion cycle has shown significant variability, ranging from as low as 5.01 days to as high as 66.36 days. This variability could be attributed to changes in the company's operational efficiency, inventory management practices, and sales cycle.
Overall, a lower cash conversion cycle is typically preferred as it indicates that the company is able to generate cash more quickly from its operational activities. Berry Global Group Inc should continue to monitor and manage its cash conversion cycle to ensure optimal working capital management and liquidity position.