Bellring Brands LLC (BRBR)

Cash conversion cycle

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Days of inventory on hand (DOH)	days	81.02	62.40	76.79	49.99	84.47
Days of sales outstanding (DSO)	days	40.30	36.83	46.12	30.41	30.69
Number of days of payables	days	34.27	28.58	36.05	38.96	31.82
Cash conversion cycle	days	87.05	70.65	86.86	41.43	83.34

September 30, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 81.02 + 40.30 – 34.27
= 87.05

The cash conversion cycle for Bellring Brands LLC has shown varying trends over the past five years. In September 2024, the cash conversion cycle was 87.05 days, indicating that it took the company approximately 87 days to convert its investments in inventory and other resources back into cash. This represents a decrease from the previous year, highlighting potential improvements in the company's working capital management efficiency.

In September 2023, the cash conversion cycle was 70.65 days, showing a shorter cycle compared to both 2024 and 2022. This suggests that the company was able to more effectively manage its cash flow and working capital during that period.

On the other hand, in September 2022, the cash conversion cycle increased to 86.86 days, indicating a potential slowdown in the company's cash conversion process compared to the previous year. This could be attributed to various factors such as inventory management issues or extended accounts receivable collection periods.

In September 2021, the cash conversion cycle was 41.43 days, reflecting a significant improvement in efficiency compared to both 2022 and 2020. This may indicate that the company was able to more quickly convert its investments into cash during that year.

Lastly, in September 2020, the cash conversion cycle was 83.34 days, similar to the 2022 figure, suggesting a longer cycle period and potentially highlighting challenges in working capital management during that time.

Overall, the analysis of Bellring Brands LLC's cash conversion cycle data indicates fluctuations in the efficiency of the company's working capital management over the past five years, with varying levels of effectiveness in converting investments into cash.