Keurig Dr Pepper Inc (KDP)

Activity ratios

Short-term

Turnover 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	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Inventory turnover	10.53	9.09	9.08	9.01	9.29	8.30	9.00	10.12	11.63	10.03	10.70	11.34	12.48	11.34	12.54	13.57	13.94	12.14	13.57	12.92
Receivables turnover	9.42	10.08	9.71	8.50	7.94	8.27	8.98	9.59	10.00	9.34	9.91	9.75	9.64	9.68	9.92	9.66	8.83	8.98	9.12	8.82
Payables turnover	3.34	3.00	2.73	2.53	2.34	2.26	2.25	2.35	2.41	2.39	2.41	2.46	2.54	2.66	2.77	2.86	2.87	3.06	3.20	3.35
Working capital turnover	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—

1. Inventory turnover:
- The inventory turnover ratio for Keurig Dr Pepper Inc has been relatively stable over the past 8 quarters, ranging from 4.55 to 5.90, with an average of approximately 5.22.
- This indicates that on average, the company has been able to sell and replace its inventory about 5 times per year. A higher ratio suggests efficient inventory management.

2. Receivables turnover:
- The receivables turnover ratio shows a fluctuating trend, ranging from 8.37 to 10.47, with an average of around 9.42 over the same 8 quarters.
- This implies that the company collects its receivables approximately 9 to 10 times per year on average. A higher ratio indicates effective credit management and timely collection of receivables.

3. Payables turnover:
- The payables turnover ratio has also varied, with values between 1.24 and 1.87, averaging approximately 1.50 across the 8 quarters.
- This suggests that the company pays its suppliers about 1.50 times per year on average. A lower ratio may indicate good vendor payment terms or potentially late payments.

4. Working capital turnover:
- Unfortunately, there is missing data for the working capital turnover ratio in the provided table. Therefore, a comprehensive analysis of this particular activity ratio is not possible based on the given information.

Overall, analyzing these activity ratios can provide insights into Keurig Dr Pepper Inc's efficiency in managing its inventory, collecting receivables, and paying its suppliers. The company seems to have maintained a relatively efficient inventory turnover and receivables turnover, while its payables turnover has shown some fluctuations.

Average number of days

		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	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Days of inventory on hand (DOH)	days	34.68	40.13	40.18	40.50	39.31	44.00	40.54	36.05	31.39	36.38	34.12	32.19	29.24	32.18	29.10	26.89	26.19	30.07	26.89	28.26
Days of sales outstanding (DSO)	days	38.76	36.20	37.58	42.95	45.95	44.12	40.64	38.08	36.51	39.09	36.84	37.44	37.88	37.70	36.79	37.77	41.33	40.66	40.01	41.38
Number of days of payables	days	109.23	121.77	133.58	144.05	155.73	161.66	161.98	155.61	151.55	152.41	151.22	148.17	143.50	137.37	131.53	127.66	127.19	119.16	114.04	109.02

Days of Inventory on Hand (DOH) for Keurig Dr Pepper Inc has been fluctuating over the past eight quarters, ranging from a low of 61.90 days in Q4 2023 to a high of 80.18 days in Q3 2022. This indicates the number of days it takes for the company to sell its inventory, with lower days being more favorable as it suggests efficient inventory management.

Days of Sales Outstanding (DSO) have been relatively stable, with minor fluctuations between 34.87 days in Q3 2023 and 43.63 days in Q3 2022. DSO measures how long it takes for the company to collect payments from its customers, with lower days indicating faster collection and better cash flow management.

The Number of Days of Payables for Keurig Dr Pepper Inc has shown a general decreasing trend over the quarters, from 282.18 days in Q4 2022 to 194.97 days in Q4 2023. This suggests that the company is taking longer to pay its suppliers, which can be advantageous for cash flow but may strain supplier relationships if prolonged too much.

Overall, while the company's inventory management efficiency has improved slightly, there may be a need to monitor the payment cycle to ensure a balance between maintaining good supplier relations and optimizing cash flow.

Long-term

	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	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Fixed asset turnover	5.30	5.62	5.65	5.50	5.32	5.43	5.40	5.34	5.11	4.86	4.76	4.95	4.98	5.17	5.15	5.26	5.16	4.61	4.50	4.17
Total asset turnover	0.27	0.27	0.27	0.26	0.26	0.26	0.26	0.25	0.25	0.23	0.23	0.22	0.22	0.22	0.22	0.22	0.21	0.21	0.21	0.19

Keurig Dr Pepper Inc's long-term activity ratios reflect how efficiently the company is utilizing its fixed assets and total assets to generate sales. The fixed asset turnover ratio has shown consistency over the quarters, ranging between 5.28 and 5.85. This indicates that the company is effectively using its fixed assets to generate revenues, with a higher ratio reflecting better management of fixed assets to generate sales.

On the other hand, the total asset turnover ratio has also remained stable around 0.25 to 0.28 over the quarters. This indicates that the company is generating sales in relation to its total assets at a consistent pace. A higher total asset turnover ratio would suggest that the company is efficient in generating sales with its total asset base.

Overall, the analysis of Keurig Dr Pepper Inc's long-term activity ratios suggests that the company is effectively utilizing both fixed assets and total assets to generate revenues consistently over the quarters. The stable and relatively high turnover ratios indicate efficient asset management and sales generation.