Bellring Brands LLC (BRBR)

Cash ratio

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Cash and cash equivalents	US$ in thousands	48,400	35,800	152,600	48,700
Short-term investments	US$ in thousands	—	—	—	—
Total current liabilities	US$ in thousands	150,200	143,500	251,300	153,100
Cash ratio		0.32	0.25	0.61	0.32

September 30, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($48,400K + $—K) ÷ $150,200K
= 0.32

The cash ratio of Bellring Brands Inc has fluctuated over the past five years, ranging from 0.14 in 2019 to 0.66 in 2021. The cash ratio measures the company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a greater ability to cover short-term obligations.

The ratio was at its lowest in 2019, possibly indicating a lower level of cash and cash equivalents relative to current liabilities. However, it saw a significant increase in 2021, suggesting an improvement in the company's liquidity position.

In 2023, the cash ratio stands at 0.41, which, although lower than the peak in 2021, still indicates a moderate ability to meet short-term obligations with readily available cash. It's important for investors and analysts to closely monitor the trend of this ratio to assess the company's liquidity and ability to manage short-term financial obligations.