Bellring Brands LLC (BRBR)

The liquidity ratios of Bellring Brands Inc, based on the provided data, show the company's ability to meet its short-term obligations.

The current ratio has exhibited fluctuations over the years, indicating changes in the company's short-term liquidity position. In 2023, the current ratio stands at 2.82, a decrease from the previous year's 2.94. This suggests that in 2023, the company may have slightly less current assets available to cover its short-term liabilities in comparison to the previous year.

The quick ratio, which provides a more conservative measure of liquidity by excluding inventory from current assets, has also seen fluctuations. In 2023, the quick ratio is 1.53, slightly lower than the previous year's 1.54. This indicates a relatively stable ability to meet short-term obligations using only the most liquid assets.

Furthermore, the cash ratio, which focuses solely on the most liquid assets, has shown variability over the years. In 2023, the cash ratio is 0.41, a notable increase from the previous year's 0.34. This suggests an improvement in the company's ability to cover short-term liabilities with cash and cash equivalents.

Overall, while the company's liquidity ratios have fluctuated over the years, the current, quick, and cash ratios generally indicate that Bellring Brands Inc has maintained a relatively strong ability to meet its short-term obligations, with an adequate level of liquid assets available.

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Additional liquidity measure

The cash conversion cycle of Bellring Brands Inc has shown fluctuations over the past five years. In 2023, the cycle stands at 70.65 days, indicating that the company takes approximately 70.65 days to convert its investments in inventory and other resources into cash flows from sales. This represents an improvement compared to 2022 when the cycle was 86.86 days.

In 2021, the cash conversion cycle decreased significantly to 41.43 days, reflecting a more efficient conversion of resources into cash compared to 2020, when the cycle was 83.34 days. However, there was a slight increase from the 2019 cycle of 80.68 days.

The positive trend in 2021 and 2023 may indicate better management of inventory and receivables, leading to a shorter cash conversion cycle. Overall, fluctuations in the cash conversion cycle suggest varying efficiencies in managing working capital and generating cash flow from operations.