Bellring Brands LLC (BRBR)

Cash conversion cycle

		Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020
Days of inventory on hand (DOH)	days	81.02	69.13	57.14	58.12	62.40	80.11	95.32	79.51	76.79	88.80	57.55	53.72	49.99	63.88	75.77	72.35	84.47
Days of sales outstanding (DSO)	days	40.30	44.02	45.42	37.58	36.83	40.32	47.22	46.53	46.12	40.77	37.08	33.94	30.41	40.25	40.76	43.83	30.69
Number of days of payables	days	34.27	33.11	30.00	28.29	28.58	32.66	37.70	35.29	36.05	45.74	34.01	29.91	38.96	49.14	46.53	36.39	31.82
Cash conversion cycle	days	87.05	80.04	72.56	67.42	70.65	87.77	104.84	90.75	86.86	83.82	60.63	57.75	41.43	54.99	70.01	79.80	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 of Bellring Brands LLC has shown fluctuations over the past historical periods. The cycle measures the time it takes for the company to convert its investments in inventory and other resources into cash flows from sales.

In the current period ending on September 30, 2024, the cash conversion cycle stands at 87.05 days, which indicates that Bellring Brands is taking approximately 87 days to convert its investments in inventory, accounts receivable, and accounts payable into cash.

Comparing this to previous periods, the cycle has been on an upward trend since the period ending on December 31, 2023, where it was at 67.42 days. This may suggest inefficiencies in managing inventory or collecting receivables, resulting in a longer cash conversion cycle.

The lowest cycle in recent periods was observed on March 31, 2022, where it reached 41.43 days. This indicates that the company was more efficient in managing its working capital during that period.

The fluctuations in the cash conversion cycle could be influenced by various factors, such as changes in sales volume, inventory management practices, credit policy with customers, and the payment terms negotiated with suppliers.

Bellring Brands should closely monitor its cash conversion cycle and identify areas for improvement to optimize its working capital management and enhance overall liquidity and operational efficiency.