Bellring Brands LLC (BRBR)

Cash ratio

		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	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	85,000	48,400	26,100	25,500	43,900	35,800	34,700	69,500	30,400	152,600	89,400	33,200	50,800	48,700	22,500	76,700	29,900
Short-term investments	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total current liabilities	US$ in thousands	162,500	150,200	167,800	157,000	149,100	143,500	177,000	130,600	145,700	251,300	264,400	199,200	138,300	153,100	127,100	128,000	107,400
Cash ratio		0.52	0.32	0.16	0.16	0.29	0.25	0.20	0.53	0.21	0.61	0.34	0.17	0.37	0.32	0.18	0.60	0.28

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($85,000K + $—K) ÷ $162,500K
= 0.52

The cash ratio of Bellring Brands Inc has displayed fluctuations over the past eight quarters. The cash ratio measures the company's ability to cover its short-term obligations with its available cash and cash equivalents.

The trend indicates that the company's ability to cover its short-term liabilities with cash has varied significantly. In Q1 2024, the cash ratio was 0.61, representing an improvement compared to the previous quarter's ratio of 0.41 in Q4 2023. This indicates that Bellring Brands Inc had a higher level of cash relative to its current liabilities in Q1 2024.

However, looking at Q3 and Q2 2023, the cash ratio was relatively low at 0.24, indicating that the company had a lower level of cash available to cover its short-term obligations during those quarters. This implies that the company may have faced challenges in meeting its immediate financial obligations with cash on hand during that period.

It is worth noting that the cash ratio also reached a peak of 0.63 in Q2 2022, indicating a strong ability to cover short-term liabilities with cash during that quarter. This suggests that Bellring Brands Inc may have actively managed its cash reserves to ensure liquidity and solvency during that period.

In conclusion, the fluctuating cash ratio of Bellring Brands Inc over the past eight quarters underscores the importance of closely monitoring the company's liquidity position. It is crucial for the company to maintain a healthy cash position to meet its short-term obligations and navigate through potential financial challenges.