Keurig Dr Pepper Inc (KDP)
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 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 0.38 | 0.39 | 0.39 | 0.39 | 0.47 | 0.60 | 0.56 | 0.54 | 0.47 | 0.41 | 0.38 | 0.37 | 0.31 | 0.33 | 0.31 | 0.33 | 0.35 | 0.35 | 0.33 | 0.32 |
| Quick ratio | 0.20 | 0.18 | 0.19 | 0.20 | 0.28 | 0.35 | 0.30 | 0.30 | 0.29 | 0.23 | 0.20 | 0.22 | 0.19 | 0.19 | 0.17 | 0.19 | 0.19 | 0.19 | 0.18 | 0.17 |
| Cash ratio | 0.03 | 0.02 | 0.03 | 0.02 | 0.07 | 0.13 | 0.08 | 0.09 | 0.10 | 0.04 | 0.04 | 0.06 | 0.04 | 0.04 | 0.02 | 0.03 | 0.01 | 0.01 | 0.02 | 0.01 |
The liquidity ratios of Keurig Dr Pepper Inc indicate a declining trend over the quarters analyzed. The current ratio, which measures the company's ability to pay its current liabilities with its current assets, has decreased from 0.47 in Q4 2022 to 0.38 in Q4 2023. This decline may suggest potential difficulties in meeting short-term obligations.
Similarly, the quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, has also shown a decreasing trend from 0.31 in Q4 2022 to 0.25 in Q4 2023. This indicates that the company may have limited excess liquid assets to cover immediate liabilities.
The cash ratio, which provides the most conservative measure of liquidity by focusing only on cash and cash equivalents, has also experienced a decline from 0.10 in Q4 2022 to 0.08 in Q4 2023. This suggests a decreasing ability to cover short-term obligations with the most liquid assets.
Overall, the decreasing trend in liquidity ratios for Keurig Dr Pepper Inc raises concerns about the company's ability to efficiently meet its short-term financial obligations. Management should closely monitor liquidity levels and take appropriate actions to improve the company's liquidity position.
See also:
Keurig Dr Pepper Inc Liquidity Ratios (Quarterly Data)
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 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | -35.79 | -45.43 | -55.82 | -60.59 | -70.47 | -73.55 | -80.80 | -81.47 | -83.65 | -76.94 | -80.26 | -78.53 | -76.38 | -67.48 | -65.64 | -63.00 | -59.67 | -48.43 | -47.13 | -39.39 |
The cash conversion cycle of Keurig Dr Pepper Inc has shown significant improvements over the past few quarters, with the cycle decreasing from -178.31 days in Q1 2022 to -95.64 days in Q4 2023. This indicates that the company is managing its working capital more efficiently, resulting in a shorter time it takes to convert its investments in inventory and accounts receivable into cash.
The trend of decreasing cash conversion cycle suggests that Keurig Dr Pepper Inc has been able to streamline its operations, reduce inventory levels, and improve collections from customers. A lower cash conversion cycle is generally a positive indicator as it means the company is able to generate cash more quickly, which can be used for various purposes such as investments, debt repayments, or returning value to shareholders.
The company's focus on managing its working capital effectively is reflected in the improving trend of the cash conversion cycle, which ultimately leads to enhanced liquidity and financial stability. However, despite the positive improvements, it is important for Keurig Dr Pepper Inc to continue monitoring and optimizing its cash conversion cycle to sustain its financial health and competitiveness in the market.