Molson Coors Brewing Co Class B (TAP)

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 13.15 13.12 12.84 12.14 13.77 11.85 11.42 10.16 11.03 10.13 10.67 10.14 11.98 12.46 13.09 12.93 14.30 13.82 12.82 13.07
Receivables turnover 33.61 27.33 24.00 29.42 31.60 28.92 26.24 30.61 30.70 22.02 16.00 20.51 21.10 17.34 17.03 13.54 18.20 15.75 12.87 3.75
Payables turnover 4.91 — — — 5.28 — — — 4.23 — — — 4.59 — — — 5.22 — — —
Working capital turnover — — — — — — — — — — — — — — — — — — — —

Molson Coors Beverage Company's inventory turnover ratio has shown a consistent improvement over the past eight quarters, indicating that the company is efficiently managing its inventory levels. The trend suggests that Molson Coors has been able to sell its inventory more frequently in the most recent quarter compared to the previous quarters.

On the other hand, the receivables turnover ratio has been fluctuating, with some variability in the collection of receivables over the quarters. However, the overall trend shows some stability, with an average collection period of approximately one month in most quarters.

The payables turnover ratio has remained constant at 3.41 over the last two quarters for which data is available. This indicates that Molson Coors is taking around 3.41 quarters, or roughly a little over a year, to pay its suppliers, on average.

Unfortunately, there is no data available for the working capital turnover ratio, making it difficult to assess how effectively Molson Coors is using its working capital to generate sales.

Overall, Molson Coors' activity ratios reflect efficient inventory management and consistent collections, while its payment to suppliers remains relatively stable.

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 27.75 27.83 28.42 30.06 26.50 30.80 31.97 35.91 33.10 36.05 34.21 36.01 30.48 29.28 27.89 28.23 25.52 26.41 28.48 27.93
Days of sales outstanding (DSO) days 10.86 13.35 15.21 12.41 11.55 12.62 13.91 11.92 11.89 16.58 22.81 17.80 17.30 21.05 21.43 26.95 20.05 23.17 28.36 97.31
Number of days of payables days 74.36 — — — 69.13 — — — 86.30 — — — 79.50 — — — 69.90 — — —

Molson Coors Beverage Company's activity ratios provide insights into how efficiently the company manages its inventory, accounts receivable, and accounts payable.

1. Days of Inventory on Hand (DOH):
- The company's days of inventory on hand decreased from 45.56 days in Q1 2023 to 39.93 days in Q4 2023. This indicates that Molson Coors improved its inventory management efficiency, holding less inventory on average during the most recent quarter.

2. Days of Sales Outstanding (DSO):
- The days of sales outstanding fluctuated over the quarters, with a notable decrease from 37.36 days in Q2 2023 to 27.43 days in Q4 2023. This suggests that Molson Coors collected its accounts receivable more quickly in the latest quarter, potentially improving cash flow and reducing the risk of bad debts.

3. Number of Days of Payables:
- Molson Coors maintained a consistent number of days of payables in Q4 2023 compared to the same period in 2022, with 107.00 days. This indicates that the company takes, on average, around 107 days to pay its suppliers, which may have implications for cash flow management and vendor relationships.

Overall, Molson Coors Beverage Company's activity ratios suggest a general improvement in inventory management and accounts receivable collection efficiency, while maintaining a stable approach to accounts payable. Management of these ratios is crucial in achieving optimal working capital management and overall operational effectiveness.

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 5.79 5.95 5.68 5.60 2.98 5.84 5.64 5.61 2.72 4.39 3.63 2.76 2.76 2.88 2.80 2.90 2.86 2.92 2.90 2.91
Total asset turnover 0.97 0.95 0.91 0.91 0.90 0.88 0.85 0.84 0.75 0.64 0.52 0.42 0.43 0.42 0.42 0.45 0.45 0.45 0.43 0.44

Molson Coors Beverage Company's long-term activity ratios reflect its efficiency in utilizing its assets to generate revenue. The fixed asset turnover ratio has been fairly stable over the past eight quarters, ranging between 2.52 and 2.70. This ratio indicates that for every dollar invested in fixed assets, the company generated between $2.52 and $2.70 in sales, showcasing consistent operational efficiency.

In contrast, the total asset turnover ratio has also shown a stable trend, albeit at lower levels compared to the fixed asset turnover. It ranged between 0.38 and 0.44 over the same period. This ratio reveals that for every dollar of total assets, Molson Coors generated sales of between $0.38 and $0.44.

Overall, Molson Coors' ability to generate revenue from both fixed assets and total assets has been relatively steady, with the company effectively utilizing its assets to drive sales. These ratios suggest that the company has maintained a healthy level of efficiency in its asset utilization, indicating effective management of its long-term assets.