Keurig Dr Pepper Inc (KDP)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | 10.10 | 10.63 | 9.37 | 11.75 | 12.91 |
| Receivables turnover | 8.84 | 9.39 | 7.91 | 9.97 | 9.73 |
| Payables turnover | 4.40 | 3.38 | 2.37 | 2.43 | 2.63 |
| Working capital turnover | — | — | — | — | — |
Keurig Dr Pepper Inc's inventory turnover has shown a decreasing trend over the years, from 12.91 in December 2020 to 10.10 in December 2024. This indicates that the company is taking longer to sell its inventory, which could lead to potential issues such as obsolete stock or overstocking.
The receivables turnover ratio has fluctuated over the years, with a peak of 9.97 in December 2021 and a low of 7.91 in December 2022. This ratio measures how efficiently the company is collecting on its credit sales, and the fluctuations may suggest changes in the company's credit policies or the creditworthiness of its customers.
In terms of payables turnover, Keurig Dr Pepper Inc has seen an increasing trend from 2.63 in December 2020 to 4.40 in December 2024. A higher payables turnover ratio indicates that the company is taking longer to pay its suppliers, which could imply improved cash flow management or better negotiation with suppliers.
The working capital turnover ratio was not provided for any of the years, indicating that it may not be a metric that is relevant or commonly used for the company's financial analysis.
Overall, analyzing Keurig Dr Pepper Inc's activity ratios reveals insights into the company's efficiency in managing inventory, collecting receivables, and paying its suppliers. These ratios can help stakeholders assess the company's operational performance and identify areas for improvement.
Average number of days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 36.13 | 34.33 | 38.95 | 31.07 | 28.28 |
| Days of sales outstanding (DSO) | days | 41.29 | 38.85 | 46.16 | 36.61 | 37.52 |
| Number of days of payables | days | 83.03 | 108.12 | 154.30 | 150.00 | 138.80 |
To analyze Keurig Dr Pepper Inc's activity ratios based on the provided data:
1. Days of Inventory on Hand (DOH):
- The DOH indicates the average number of days it takes for the company to turn its inventory into sales.
- The trend shows an increasing pattern from 28.28 days in 2020 to 36.13 days in 2024.
- A longer DOH may suggest inefficiencies in managing inventory or a decline in sales turnover.
2. Days of Sales Outstanding (DSO):
- DSO represents the average number of days it takes for the company to collect payment after a sale.
- There is some fluctuation in DSO, with a peak of 46.16 days in 2022 and a low of 36.61 days in 2021.
- A higher DSO may indicate potential issues with accounts receivable management and cash flow.
3. Number of Days of Payables:
- This ratio reflects how long the company takes to pay its suppliers.
- Keurig Dr Pepper Inc's payables days decreased significantly from 150.00 days in 2021 to 83.03 days in 2024.
- A declining trend in payables days suggests the company is paying its suppliers more promptly.
Overall, these activity ratios provide insights into Keurig Dr Pepper Inc's inventory management, accounts receivable collection efficiency, and payment terms with suppliers. Analyzing these ratios over time can help assess the company's operational efficiency and working capital management.
See also:
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 5.14 | 5.29 | 5.30 | 5.09 | 5.03 |
| Total asset turnover | 0.29 | 0.27 | 0.25 | 0.25 | 0.22 |
The long-term activity ratios of Keurig Dr Pepper Inc show consistent improvement over the years according to the provided data.
1. Fixed Asset Turnover:
- The fixed asset turnover ratio indicates how efficiently the company is utilizing its fixed assets to generate revenue.
- Keurig Dr Pepper Inc's fixed asset turnover has been increasing since 2020, from 5.03 in 2020 to 5.14 in 2024.
- This suggests that the company is generating more revenue per dollar invested in fixed assets over the years, indicating improved operational efficiency.
2. Total Asset Turnover:
- The total asset turnover measures how effectively the company is using its total assets to generate sales.
- Keurig Dr Pepper Inc's total asset turnover has also shown an upward trend from 0.22 in 2020 to 0.29 in 2024.
- The increasing total asset turnover implies that the company is generating more sales relative to its total assets, indicating enhanced efficiency in utilizing its asset base to drive revenue growth.
In conclusion, the long-term activity ratios of Keurig Dr Pepper Inc reflect a positive trend, indicating improved efficiency in utilizing both fixed and total assets to generate revenue over the years.