Bellring Brands LLC (BRBR)

Payables 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
Payables	US$ in thousands	121,000	89,000	93,800	91,900	56,700
Payables turnover		10.65	12.77	10.12	9.37	11.47

September 30, 2024 calculation

Payables turnover = Cost of revenue ÷ Payables
= $1,288,900K ÷ $121,000K
= 10.65

Bellring Brands LLC's payables turnover has fluctuated over the past five years, ranging from a low of 9.37 in 2021 to a high of 12.77 in 2023. The payables turnover ratio measures how efficiently the company manages its trade payables by comparing the cost of goods sold to the average accounts payable balance. A higher turnover ratio indicates that the company is paying off its suppliers more frequently, which can reflect strong liquidity and good relationships with suppliers. Conversely, a lower turnover ratio may suggest slower payment to suppliers or challenges in managing working capital effectively.

In the most recent period ending September 30, 2024, Bellring Brands LLC achieved a payables turnover of 10.65, which was a decrease compared to the previous year. This may be an indication that the company took longer to pay off its suppliers relative to its cost of goods sold. The trend over the five-year period suggests some variability in the management of payables, and further analysis of the company's payment policies and supplier relationships may be warranted to understand the underlying reasons for these fluctuations.