Bellring Brands LLC (BRBR)

Inventory turnover

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Cost of revenue	US$ in thousands	1,288,900	1,136,600	949,700	860,900	650,300
Inventory	US$ in thousands	286,100	194,300	199,800	117,900	150,500
Inventory turnover		4.51	5.85	4.75	7.30	4.32

September 30, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $1,288,900K ÷ $286,100K
= 4.51

Inventory turnover is a key financial ratio that measures how efficiently a company manages its inventory by showing how many times during a specific period the inventory is sold and replaced. A higher inventory turnover generally indicates better inventory management and more efficient use of resources.

Analyzing the data provided for Bellring Brands LLC, we observe fluctuations in inventory turnover over the past five years. In 2024, the inventory turnover ratio was 4.51, a decrease from the previous year's ratio of 5.85. This decrease suggests that the company took longer to sell and replace its inventory compared to the prior year.

Looking back at the trend over the past five years, the inventory turnover ratio has shown variability, ranging from a high of 7.30 in 2021 to a low of 4.32 in 2020. The peak in 2021 indicates that the company was more efficient in managing its inventory that year, possibly due to better demand forecasting or tighter inventory control.

Overall, Bellring Brands LLC's inventory turnover ratios have shown fluctuations, implying varying levels of inventory efficiency over the years. Further analysis and comparison with industry benchmarks may provide deeper insights into the company's inventory management practices and potential areas for improvement.