Bellring Brands LLC (BRBR)
Liquidity ratios
| 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 | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 2.86 | 2.82 | 2.68 | 3.17 | 3.04 | 2.94 | 2.39 | 2.75 | 2.04 | 1.54 | 1.41 | 1.55 | 2.35 | 1.90 | 2.29 | 2.73 | 2.68 |
| Quick ratio | 1.62 | 1.44 | 1.19 | 1.40 | 1.52 | 1.46 | 1.04 | 1.55 | 1.02 | 1.02 | 0.83 | 0.76 | 1.26 | 0.86 | 0.77 | 1.47 | 1.15 |
| 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 |
Bellring Brands Inc's liquidity ratios have shown some fluctuations over the past eight quarters. The current ratio, which compares current assets to current liabilities, has generally been above 2, indicating that the company has had more than enough current assets to cover its short-term obligations. However, the current ratio peaked in Q2 2023 at 3.17 before declining in subsequent quarters.
The quick ratio, which is a more stringent measure of liquidity as it excludes inventory from current assets, has also displayed variability. While generally above 1, indicating that the company can meet its short-term liabilities without relying on inventory sales, there have been fluctuations in the quick ratio over the quarters.
The cash ratio, which provides the most conservative view of liquidity by considering only cash and cash equivalents to current liabilities, has ranged from 0.24 to 0.63. The decline in the cash ratio in Q4 2023 compared to the previous quarters may suggest a need for Bellring Brands Inc to improve its ability to cover short-term obligations with cash on hand.
Overall, Bellring Brands Inc has maintained solid liquidity ratios, particularly in terms of the current and quick ratios. However, the fluctuations in these ratios, as well as the decrease in the cash ratio in the most recent quarter, indicate that the company should continue to monitor and manage its liquidity position effectively.
Additional liquidity measure
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The cash conversion cycle of Bellring Brands Inc has shown fluctuations over the past eight quarters.
In Q1 2024, the cash conversion cycle improved to 67.42 days compared to the previous quarter at Q4 2023 with 70.65 days. This indicates that the company took slightly less time to convert its investments in inventory and other resources into cash during Q1 2024.
However, looking at a broader trend, the cash conversion cycle has been inconsistent. In Q3 2023 and Q2 2023, the company experienced longer cash conversion cycles of 87.77 days and 104.84 days, respectively, suggesting delays in converting investments into cash during those quarters. This trend continued from the previous two quarters where the cycle was at 90.75 days in Q1 2023 and 86.86 days in Q4 2022.
On a positive note, the company improved its cash conversion cycle in Q2 2022 with a cycle of only 60.63 days, indicating a more efficient management of working capital during that quarter.
Overall, Bellring Brands Inc should continue monitoring and managing its cash conversion cycle to ensure optimal efficiency in converting its investments into cash flow, potentially through more effective inventory and accounts receivable management.