Bellring Brands LLC (BRBR)

Short-term

Turnover ratios

Activity ratios are used to measure how effectively a company is managing its resources to generate sales. Let's analyze the activity ratios of Bellring Brands LLC based on the data provided:

1. Inventory Turnover:
Bellring Brands' inventory turnover ratio has fluctuated over the past five years but has generally been consistent. A higher inventory turnover indicates that the company is selling its inventory more frequently, which can be a positive sign of efficient operations. In 2023, the ratio peaked at 5.85, suggesting a strong performance in managing inventory levels.

2. Receivables Turnover:
The receivables turnover ratio for Bellring Brands has also shown consistency with some fluctuations. A higher receivables turnover implies that the company is collecting its accounts receivable efficiently. In 2021, the ratio was at its highest, indicating that the company was collecting on its credit sales effectively.

3. Payables Turnover:
Bellring Brands' payables turnover ratio has varied over the years but has generally shown a decreasing trend. A higher payables turnover ratio indicates that the company is paying its suppliers more quickly. In 2023, the ratio was at its highest, suggesting a good relationship with suppliers and efficient payment practices.

4. Working Capital Turnover:
The working capital turnover ratio measures how effectively a company utilizes its working capital to generate sales. Bellring Brands' working capital turnover has fluctuated over the years but has generally been stable. A higher ratio indicates that the company is efficiently using its working capital to drive sales. In 2021, the company recorded a high working capital turnover ratio, indicating effective management of working capital.

Overall, Bellring Brands LLC has shown a mixed performance in its activity ratios over the past five years. While there have been fluctuations, the company has maintained relatively stable ratios, indicating efficient management of inventory, receivables, payables, and working capital to support its sales generation.

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Average number of days

Bellring Brands LLC's activity ratios provide insights into the efficiency of its operations and management of working capital over the past five years.

1. Days of Inventory on Hand (DOH):
- The trend in DOH shows some variation over the years, indicating fluctuations in inventory management.
- There was a notable increase in 2020 and 2024 compared to 2021-2023, suggesting potential issues with inventory levels or supply chain management.
- The company may need to evaluate its inventory turnover and potentially optimize its inventory management to avoid holding excess inventory that ties up working capital.

2. Days of Sales Outstanding (DSO):
- DSO represents the average number of days it takes for the company to collect revenue from sales.
- The trend in DSO has been relatively stable, fluctuating within a narrow range over the years.
- The company's ability to collect revenue from sales appears consistent and effective, with a moderate increase in 2024 compared to previous years.

3. Number of Days of Payables:
- This ratio reflects the average number of days it takes for the company to pay its suppliers.
- There has been some variability in the number of days of payables, indicating changes in the company's payment practices or supplier relationships.
- In 2024, there was an increase in the number of days of payables compared to previous years, suggesting a potential extension of payment terms or improved cash flow management.

Overall, Bellring Brands LLC should continue monitoring and potentially adjusting its activity ratios to optimize working capital management, enhance operational efficiency, and maintain healthy relationships with both suppliers and customers.

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Long-term

The fixed asset turnover ratio measures how efficiently a company generates sales using its fixed assets. Bellring Brands LLC has shown a positive trend in this ratio over the past five years, increasing from 96.89 in 2020 to 216.98 in 2024. This indicates that the company has been able to generate significantly more sales relative to its investment in fixed assets, which is a positive sign of operational efficiency and asset utilization.

On the other hand, the total asset turnover ratio measures how efficiently a company generates sales using all its assets. Although there has been some fluctuation in this ratio over the same period, with a slight decrease from 1.51 in 2020 to 2.38 in 2024, Bellring Brands LLC still maintains a generally healthy level of total asset turnover. This suggests that the company has been effectively managing its total assets to generate sales revenue.

Overall, the improving trend in the fixed asset turnover ratio, coupled with the stable total asset turnover ratio, indicates that Bellring Brands LLC has been successful in utilizing its assets efficiently to drive sales growth and generate revenue over the years. This bodes well for the company's long-term sustainability and operational effectiveness.