Bellring Brands LLC (BRBR)

Cash conversion cycle

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

September 30, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 62.40 + 36.83 – 28.58
= 70.65

The cash conversion cycle (CCC) of Bellring Brands Inc has shown fluctuations over the past five years. In September 2023, the CCC decreased to 70.65 days from 86.86 days in 2022, indicating an improvement in the company's ability to convert its investments in inventory and receivables into cash. This suggests more efficient management of working capital compared to the previous year.

In 2021, the CCC stood at 41.43 days, representing a significant improvement from the prior year, reflecting a more effective management of the company's cash flow and working capital. However, the CCC increased to 83.34 days in 2020, which suggests a deterioration in the company's ability to convert its resources into cash compared to the previous year.

Similarly, in 2019, the CCC was 80.68 days, indicating a prolonged cycle for the conversion of investment in inventory and receivables to cash. Overall, the company has experienced fluctuations in its cash conversion cycle, with variations in its ability to efficiently manage working capital and convert investments into cash over the past five years.