Keurig Dr Pepper Inc. (NASDAQ:KDP)

Net inventory levels exhibited a consistent upward trajectory from 2018 to 2021, increasing from 626 million US dollars to 894 million US dollars. This growth is primarily attributed to expansions in raw materials and finished goods, while work-in-process inventories remained marginal and stable throughout the analyzed period.

Raw Materials Accumulation

Raw materials saw a steady increase from 208 million US dollars in 2018 to 330 million US dollars in 2021. The most significant growth occurred between 2020 and 2021, where values rose by approximately 27%, suggesting a strategic increase in input stockpiling.

Finished Goods Expansion

Finished goods constituted the largest portion of the inventory portfolio, rising from 425 million US dollars in 2018 to 577 million US dollars in 2021. This upward trend indicates a consistent increase in the volume of products held for sale.

Work in Process Stability

Work in process values remained consistently low, fluctuating minimally between 6 million and 8 million US dollars. This stability suggests a rapid conversion cycle from raw materials to finished goods.

Inventory Valuation and Obsolescence

The allowance for excess and obsolete inventories increased from 13 million US dollars in 2018 to a peak of 24 million US dollars in 2020, before declining to 19 million US dollars in 2021. The reduction in the allowance during the final year, despite an increase in total gross inventory, indicates improved inventory management or a reduction in obsolete stock.