Keurig Dr Pepper Inc (KDP)

Activity ratios

Short-term

Turnover ratios

	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Inventory turnover	9.99	8.94	9.58	9.93	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
Receivables turnover	8.88	9.01	9.41	9.83	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
Payables turnover	4.35	3.86	3.87	3.75	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
Working capital turnover	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—

The analysis of Keurig Dr Pepper Inc's activity ratios reveals the following trends:

1. Inventory Turnover: The company's inventory turnover has been gradually declining over the years, indicating a decrease in the efficiency of managing and selling inventory. However, it is still at a relatively healthy level, with the latest ratio at 9.99 as of December 31, 2024.

2. Receivables Turnover: Keurig Dr Pepper Inc's receivables turnover has fluctuated over the years but generally remained stable. The company is collecting its receivables approximately 9 to 10 times a year, with a slight decrease in the latest period to 8.88 as of December 31, 2024.

3. Payables Turnover: The payables turnover ratio has been increasing steadily, indicating that the company is taking longer to pay its suppliers. This could potentially strain relationships with suppliers if not managed carefully. The latest ratio stands at 4.35 as of December 31, 2024.

4. Working Capital Turnover: The data shows that the working capital turnover ratio is not provided for any period, which limits our ability to evaluate how efficiently the company is generating sales from its working capital.

In summary, Keurig Dr Pepper Inc's activity ratios suggest relatively stable performance in managing inventory and collecting receivables, but a potential concern arises from the increasing time taken to pay its suppliers, which could impact liquidity and supplier relationships in the long run. The lack of data on working capital turnover hinders a comprehensive assessment of the company's efficiency in utilizing its working capital for generating sales.

Average number of days

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Days of inventory on hand (DOH)	days	36.52	40.81	38.12	36.77	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
Days of sales outstanding (DSO)	days	41.12	40.51	38.78	37.13	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
Number of days of payables	days	83.93	94.64	94.35	97.33	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

Keurig Dr Pepper Inc's activity ratios provide insights into how efficiently the company manages its assets and liabilities.

1. Days of Inventory on Hand (DOH): This ratio indicates how many days, on average, the company holds inventory before selling it. Keurig Dr Pepper Inc's DOH has been gradually increasing from 26.89 days as of March 31, 2020, to 40.81 days as of September 30, 2024. A rising DOH may suggest issues with inventory management or slowing sales.

2. Days of Sales Outstanding (DSO): DSO measures how long it takes for the company to collect payment from its customers after a sale. Keurig Dr Pepper Inc's DSO fluctuated over the years, with a peak of 45.95 days as of December 31, 2022. A decreasing trend in DSO is generally positive, as it indicates quicker conversion of sales into cash.

3. Number of Days of Payables: This ratio represents the number of days it takes for the company to pay its suppliers. Keurig Dr Pepper Inc's days of payables decreased significantly from 161.66 days as of September 30, 2022, to 83.93 days as of December 31, 2024. A lower number of days of payables may indicate improved liquidity but could also suggest strained relationships with suppliers.

Overall, monitoring these activity ratios is crucial for evaluating Keurig Dr Pepper Inc's operational efficiency and effectiveness in managing working capital.

Long-term

	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Fixed asset turnover	5.16	5.21	5.35	5.28	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
Total asset turnover	0.29	0.28	0.27	0.27	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

The Fixed Asset Turnover ratio of Keurig Dr Pepper Inc has shown a consistent trend of improvement over the analyzed periods, starting at 5.26 in March 2020 and gradually increasing to 5.16 by December 2024. This indicates that the company has been able to generate more revenue relative to its investment in fixed assets.

In contrast, the Total Asset Turnover ratio has also been on an upward trajectory, but with a slower pace compared to the Fixed Asset Turnover ratio. It started at 0.22 in March 2020 and increased to 0.29 by December 2024. This suggests that the company's ability to generate revenue from its total assets has been gradually improving over time.

Overall, both ratios reflect positively on the operational efficiency of Keurig Dr Pepper Inc, showcasing an effective utilization of its fixed and total assets to drive revenue generation.