Bellring Brands LLC (BRBR)

Cash conversion cycle

		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	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	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	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	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

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 58.12 + 37.58 – 28.29
= 67.42

The cash conversion cycle of Bellring Brands Inc has shown fluctuations over the past few quarters. In Q1 2024, the company's cash conversion cycle was 67.42 days, indicating that it takes around 67 days for the company to convert its investments in inventory and other resources into cash from sales. This was a decrease from the previous quarter's figure of 70.65 days.

Looking back over the past year, the company experienced a peak in Q2 2023 with a cash conversion cycle of 104.84 days, suggesting a significant delay in the company's ability to convert its resources into cash. This was followed by a gradual improvement in the subsequent quarters, reaching a low point of 60.63 days in Q2 2022.

Overall, the trend in the cash conversion cycle indicates some variability in the company's efficiency in managing its working capital. A lower cash conversion cycle is generally seen as favorable, as it signifies that the company is able to more quickly generate cash inflows from its operations. Bellring Brands Inc should continue to focus on streamlining its inventory management and collection processes to further improve its cash conversion cycle in the future.