Bellring Brands LLC (BRBR)

Quick ratio

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Cash	US$ in thousands	48,400	35,800	152,600	48,700
Short-term investments	US$ in thousands	—	—	—	—
Receivables	US$ in thousands	168,200	173,300	103,900	83,100
Total current liabilities	US$ in thousands	150,200	143,500	251,300	153,100
Quick ratio		1.44	1.46	1.02	0.86

September 30, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($48,400K + $—K + $168,200K) ÷ $150,200K
= 1.44

The quick ratio of Bellring Brands Inc has displayed a generally positive trend over the past five years, reflecting the company's ability to meet its short-term obligations with its most liquid assets. The quick ratio increased from 0.88 in 2019 to 1.53 in 2023, indicating an improvement in the company's short-term liquidity position. This upward trend suggests that Bellring Brands Inc has been effectively managing its current liabilities in relation to its quick assets, which are assets that can be readily converted to cash. The consistent increase in the quick ratio from 2019 to 2023 demonstrates an enhanced ability to cover short-term obligations without relying heavily on inventory, thus indicating a stronger financial position. Overall, the increasing quick ratio of Bellring Brands Inc signifies improved liquidity and a reduced risk of financial distress in the short term.