Bellring Brands LLC (BRBR)

The liquidity ratios of Bellring Brands LLC indicate the company's ability to meet its short-term obligations with its current assets.

The current ratio has shown a stable trend over the years, with values above 1.5 indicating that the company has sufficient current assets to cover its current liabilities. The ratio peaked in 2022 at 2.94, showing a strong ability to meet short-term obligations, followed by slight decreases in 2023 and 2024. This stability suggests that Bellring Brands has maintained a healthy balance between current assets and current liabilities.

The quick ratio, which excludes inventory from current assets, remained relatively consistent over the years, ranging from 1.02 to 1.46. This ratio also indicates that the company has an adequate level of liquid assets to cover its immediate liabilities without relying on inventory.

The cash ratio, which is the most conservative measure of liquidity, shows the company's ability to cover its current liabilities with its cash and cash equivalents. Bellring Brands' cash ratio fluctuated over the years, with the lowest value in 2022 (0.25) and the highest in 2021 (0.61). While the ratio in 2024 at 0.35 is relatively lower than in previous years, it still indicates that the company has a reasonable level of cash to meet its short-term obligations.

Overall, the liquidity ratios of Bellring Brands LLC demonstrate a consistent and adequate ability to cover short-term liabilities with its current assets, providing a degree of financial stability and operational flexibility.

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Additional liquidity measure

The cash conversion cycle of Bellring Brands LLC has varied over the past five years, with fluctuations observed in the efficiency of its cash management. In the most recent fiscal year ending on September 30, 2024, the cash conversion cycle extended to 87.05 days, representing a significant increase from the previous year. This suggests that the company took longer to convert its investments in inventory and accounts receivable into cash during this period.

Comparing 2024 to 2023, the increase in the cash conversion cycle indicates potential challenges in managing working capital effectively. On the other hand, the cycle was notably longer in 2021 at 41.43 days, indicating a more efficient cash conversion process during that period.

Analyzing the trend over the five-year period, there appears to be inconsistency in managing the cash conversion cycle, with fluctuations noted from year to year. Further analysis could reveal the specific drivers behind these variations and provide insights into opportunities for improvement in working capital management for Bellring Brands LLC.