Bellring Brands LLC (BRBR)

Inventory turnover

		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
Cost of revenue (ttm)	US$ in thousands	1,178,100	1,136,600	1,076,200	1,016,700	976,400	949,700	936,800	917,700	884,600	860,900	809,700	713,900	688,100	650,300
Inventory	US$ in thousands	187,600	194,300	236,200	265,500	212,700	199,800	227,900	144,700	130,200	117,900	141,700	148,200	136,400	150,500	184,600	151,200	150,200
Inventory turnover		6.28	5.85	4.56	3.83	4.59	4.75	4.11	6.34	6.79	7.30	5.71	4.82	5.04	4.32

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,178,100K ÷ $187,600K
= 6.28

Bellring Brands Inc's inventory turnover has shown fluctuations over the past eight quarters. The company's inventory turnover ratio has ranged from a low of 3.83 in Q2 2023 to a high of 6.34 in Q2 2022.

Generally, a higher inventory turnover ratio indicates that the company is selling its inventory more quickly, which is a positive sign of operational efficiency. A lower ratio suggests that inventory is being held for a longer period, potentially tying up working capital and leading to higher carrying costs.

Bellring Brands Inc's inventory turnover has shown variability, with Q1 2024 and Q2 2022 having the highest turnover ratios, indicating efficient inventory management during those periods. However, Q2 2023 saw a significant drop in the ratio, reflecting a potential slowdown in sales or excess inventory levels.

It is important for the company to closely monitor its inventory turnover ratio to ensure optimal inventory management. By maintaining a balance between stocking enough inventory to meet demand and avoiding excess holdings, Bellring Brands Inc can improve its profitability and liquidity.