Bellring Brands LLC (BRBR)

Short-term

Turnover ratios

Activity ratios measure how efficiently a company is managing its resources in generating sales. Let's analyze the activity ratios of Bellring Brands Inc based on the provided data:

1. Inventory Turnover:
- The inventory turnover ratio has been fluctuating over the past quarters, ranging from 3.83 to 6.28.
- A higher inventory turnover indicates that Bellring Brands is selling its inventory more frequently, which can be a positive sign of efficient inventory management.
- The increase in Q1 2024 compared to the previous quarters suggests improved efficiency in managing inventory levels.

2. Receivables Turnover:
- The receivables turnover ratio has been relatively stable, varying between 7.73 and 9.91.
- A higher receivables turnover indicates that Bellring Brands is collecting its receivables quickly, which is a positive sign of effective credit management.
- Consistent levels of receivables turnover suggest the company has maintained a good balance between sales and credit policies.

3. Payables Turnover:
- The payables turnover ratio has shown variations over the quarters, ranging from 7.98 to 12.90.
- A higher payables turnover implies that Bellring Brands is paying its suppliers frequently, possibly taking advantage of credit terms.
- The increase in Q1 2024 compared to previous quarters indicates a more active management of payables, potentially improving cash flow efficiency.

4. Working Capital Turnover:
- The working capital turnover ratio has fluctuated between 4.41 and 6.08, reflecting the efficiency of using working capital to generate sales.
- A higher working capital turnover suggests effective utilization of resources to support revenue generation.
- The trends in this ratio can provide insights into the company's overall operational efficiency and how well it is managing its current assets and liabilities.

Overall, analyzing these activity ratios provides a comprehensive view of Bellring Brands Inc's operational efficiency and effectiveness in managing its resources to drive sales. Further trend analysis and comparison with industry benchmarks can help in assessing the company's performance in these areas.

---

Average number of days

To analyze Bellring Brands Inc's activity ratios based on the provided data, we can focus on three key metrics: Days of Inventory on Hand (DOH), Days of Sales Outstanding (DSO), and Number of Days of Payables.

1. Days of Inventory on Hand (DOH):
- DOH measures how long, on average, inventory is held before being sold. A lower DOH indicates more efficient inventory management.
- Bellring Brands Inc's DOH has fluctuated over the quarters. It decreased from Q2 2023 to Q1 2024, which suggests an improvement in inventory turnover efficiency during this period.

2. Days of Sales Outstanding (DSO):
- DSO represents the average number of days it takes for a company to collect revenue after a sale. A lower DSO indicates more efficient accounts receivable management.
- Bellring Brands Inc's DSO remained relatively stable over the quarters, with minor fluctuations. The company has maintained a consistent collection period for sales during this period.

3. Number of Days of Payables:
- This ratio reflects how long the company takes to pay its suppliers. A higher number of days of payables may indicate better cash flow management.
- Bellring Brands Inc's number of days of payables has shown some variability over the quarters, with fluctuations both upward and downward. The company might be adjusting its payment terms with suppliers based on business needs.

In summary, Bellring Brands Inc has shown improvements in inventory turnover efficiency, stable accounts receivable management, and some variability in payment terms with suppliers. By continuing to monitor and optimize these activity ratios, the company can enhance its working capital management and overall operational performance.

---

Long-term

The long-term activity ratios of Bellring Brands Inc, as represented by the fixed asset turnover and total asset turnover ratios, show the company's efficiency in generating revenue and managing its assets over time.

The fixed asset turnover ratio, which measures how effectively a company utilizes its fixed assets to generate revenue, has been consistently increasing from Q2 2022 to Q1 2024. This indicates that Bellring Brands Inc has been able to generate more revenue per dollar of fixed assets invested, reflecting improved operational efficiency and better asset utilization.

On the other hand, the total asset turnover ratio, which evaluates the company's ability to generate sales in relation to its total assets, has exhibited fluctuations over the same period. Although the ratio remained relatively stable around the range of 1.86 to 2.42, it indicates that the company has been efficient in utilizing its assets to generate sales, with a slight improvement in recent quarters.

Overall, the trend in both fixed asset turnover and total asset turnover ratios suggests that Bellring Brands Inc has been effective in managing its assets and generating revenue efficiently, which can enhance its profitability and sustainability in the long term. It also signals potential operational improvements and effective resource allocation within the organization.