Analysis of Short-term (Operating) Activity Ratios
Quarterly Data
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Short-term Activity Ratios (Summary)
Keurig Dr Pepper Inc., short-term (operating) activity ratios (quarterly data)
Based on: 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
- Inventory Turnover
- The inventory turnover ratio demonstrates a declining trend from 7.31 in March 2020 to 5.04 in June 2022. This indicates a gradual slowdown in the frequency with which inventory is sold and replaced over the periods. The ratio dropped steadily, reflecting potentially longer holding periods or slower sales.
- Receivables Turnover
- Receivables turnover initially increased, reaching a peak at 11.33 in September 2021, up from 9.97 in March 2020. However, following the peak, a slight decline occurred, decreasing to 10.01 by June 2022. This pattern suggests an improvement in collecting receivables up to late 2021, followed by a modest slowdown in collection efficiency.
- Payables Turnover
- The payables turnover ratio steadily decreased from 1.50 in March 2020 to 1.26 in June 2022, indicating that the company is taking longer to pay its suppliers over time. This lengthening of the payment period may reflect improved management of cash outflows or changed payment terms.
- Average Inventory Processing Period
- This metric increased from 50 days in March 2020 to 72 days by June 2022, signifying a longer duration inventory is held before being processed or sold. The trend aligns with the declining inventory turnover, pointing to a slower inventory cycle.
- Average Receivable Collection Period
- The average time to collect receivables remained relatively stable, fluctuating between 32 and 37 days, with a slight increase to 36 days by June 2022. This stability suggests consistent credit policies and customer payment behaviors.
- Operating Cycle
- The operating cycle exhibited a general upward trend from 87 days in March 2020 to 108 days in June 2022, indicating a lengthening of the time between inventory acquisition and cash receipt from sales. This lengthening reflects increased inventory holding and steady receivables collection periods.
- Average Payables Payment Period
- The average payables payment period steadily extended from 243 days in March 2020 to 290 days in June 2022. This indicates that the company is taking considerably more time to settle its obligations, which improves cash flow but may affect supplier relations.
- Cash Conversion Cycle
- The cash conversion cycle values are negative throughout the available periods, indicating that payables are being paid later than cash is collected from customers and inventory is converted. The cycle decreased from -156 days in March 2020 to around -182 days in June 2022, suggesting increasingly efficient cash management and extended payment terms to suppliers.
Turnover Ratios
Average No. Days
Inventory Turnover
Keurig Dr Pepper Inc., inventory turnover calculation (quarterly data)
| 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 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||
| Cost of sales | 1,778) | 1,428) | 1,619) | 1,415) | 1,370) | 1,302) | 1,353) | 1,316) | 1,302) | 1,161) | 1,241) | 1,245) | 1,186) | 1,106) | |||||
| Inventories | 1,239) | 1,045) | 894) | 972) | 897) | 841) | 762) | 824) | 747) | 682) | 654) | 751) | 686) | 663) | |||||
| Short-term Activity Ratio | |||||||||||||||||||
| Inventory turnover1 | 5.04 | 5.58 | 6.38 | 5.60 | 5.95 | 6.27 | 6.73 | 6.09 | 6.63 | 7.09 | 7.31 | — | — | — | |||||
| Benchmarks | |||||||||||||||||||
| Inventory Turnover, Competitors2 | |||||||||||||||||||
| Coca-Cola Co. | 4.69 | 4.26 | 4.50 | 4.67 | 4.37 | 4.04 | 4.11 | — | — | — | — | — | — | — | |||||
| Mondelēz International Inc. | 6.12 | 6.33 | 6.45 | 5.84 | 5.67 | 6.13 | 6.10 | — | — | — | — | — | — | — | |||||
| PepsiCo Inc. | 7.26 | 7.95 | 8.53 | 8.11 | 6.82 | 7.10 | 7.62 | — | — | — | — | — | — | — | |||||
| Philip Morris International Inc. | 1.41 | 1.19 | 1.15 | 1.20 | 1.11 | 1.05 | 1.00 | — | — | — | — | — | — | — | |||||
Based on: 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q2 2022 Calculation
Inventory turnover
= (Cost of salesQ2 2022
+ Cost of salesQ1 2022
+ Cost of salesQ4 2021
+ Cost of salesQ3 2021)
÷ Inventories
= (1,778 + 1,428 + 1,619 + 1,415)
÷ 1,239 = 5.04
2 Click competitor name to see calculations.
The quarterly financial data indicates several notable trends related to cost of sales, inventories, and inventory turnover over the presented periods.
- Cost of Sales
- The cost of sales showed an overall upward trend across the timeline. Starting at $1,106 million in the first quarter of 2019, it increased with some fluctuations to reach $1,778 million by the second quarter of 2022. Noteworthy is the gradual growth seen especially from mid-2020 onward, with a marked increase observed in the first quarter of 2022, signaling rising costs associated with sales activities over time.
- Inventories
- Inventories similarly exhibited an increasing trajectory. Beginning at $663 million in early 2019, inventory levels rose steadily through the subsequent periods, reaching a peak of $1,239 million in the second quarter of 2022. This increasing stock level suggests either accumulating goods in anticipation of higher sales or a change in inventory management strategy. There was a slight dip at the end of 2019, but following that, the upward trend resumed consistently.
- Inventory Turnover
- The inventory turnover ratio shows a declining trend from 7.31 times in the first quarter of 2020 to 5.04 times in the second quarter of 2022. This decline indicates that inventories were being sold and replaced less frequently over time. A decreasing turnover rate may reflect slowing sales velocity relative to inventory levels or potentially more conservative inventory replenishment practices. The ratio experienced incremental decreases each quarter, apart from a slight uptick in the first quarter of 2022, yet the overall movement points to reduced efficiency in inventory utilization.
In summary, the dataset reveals increasing cost of sales and inventory values alongside a decreasing inventory turnover ratio. This combination implies growing investment in inventory and higher costs related to goods sold, with a concurrent decline in how rapidly inventory is cycled, potentially affecting operational efficiency.
Receivables Turnover
Keurig Dr Pepper Inc., receivables turnover calculation (quarterly data)
| Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||
| Net sales | 3,554) | 3,078) | 3,391) | 3,250) | 3,140) | 2,902) | 3,121) | 3,020) | 2,864) | 2,613) | 2,934) | 2,870) | 2,812) | 2,504) | |||||
| Trade accounts receivable, net | 1,326) | 1,214) | 1,148) | 1,138) | 1,075) | 1,065) | 1,048) | 1,051) | 1,010) | 1,037) | 1,115) | 1,090) | 1,068) | 1,016) | |||||
| Short-term Activity Ratio | |||||||||||||||||||
| Receivables turnover1 | 10.01 | 10.59 | 11.05 | 10.91 | 11.33 | 11.18 | 11.09 | 10.88 | 11.17 | 10.83 | 9.97 | — | — | — | |||||
| Benchmarks | |||||||||||||||||||
| Receivables Turnover, Competitors2 | |||||||||||||||||||
| Coca-Cola Co. | 9.19 | 8.65 | 11.01 | 9.72 | 9.02 | 8.89 | 10.50 | — | — | — | — | — | — | — | |||||
| Mondelēz International Inc. | 12.11 | 9.94 | 12.29 | 10.61 | 12.51 | 10.21 | 11.57 | — | — | — | — | — | — | — | |||||
| PepsiCo Inc. | 7.80 | 8.58 | 9.16 | 8.03 | 7.67 | 8.03 | 8.37 | — | — | — | — | — | — | — | |||||
| Philip Morris International Inc. | 8.32 | 8.65 | 10.06 | 9.10 | 8.50 | 8.82 | 9.88 | — | — | — | — | — | — | — | |||||
Based on: 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q2 2022 Calculation
Receivables turnover
= (Net salesQ2 2022
+ Net salesQ1 2022
+ Net salesQ4 2021
+ Net salesQ3 2021)
÷ Trade accounts receivable, net
= (3,554 + 3,078 + 3,391 + 3,250)
÷ 1,326 = 10.01
2 Click competitor name to see calculations.
The financial data reveals several key trends in sales, receivables, and efficiency ratios over the presented periods.
- Net Sales
- Net sales exhibit a general upward trend from March 2019 through June 2022, with fluctuations corresponding to seasonal and market conditions. Starting at $2,504 million in March 2019, sales increased to $3,554 million by June 2022. Notable sales declines occurred in Q1 2020 ($2,613 million) compared to the previous quarter, likely reflecting external market pressures, but sales recovered and exceeded prior levels by the end of 2020. The growth continued steadily through 2021 and 2022, with the highest recorded quarterly sales in June 2022 at $3,554 million.
- Trade Accounts Receivable, Net
- The trade accounts receivable followed a generally increasing pattern, rising from $1,016 million in March 2019 to $1,326 million in June 2022. While there were some fluctuations, receivables tended to increase particularly from 2021 onwards, indicating potentially higher credit sales or extended collection periods. This upward trajectory aligns with the increase in net sales, although the rate of increase in receivables is somewhat steady compared to fluctuations in sales volume.
- Receivables Turnover Ratio
- The receivables turnover ratio, a measure of how efficiently the company collects its receivables, showed variability across the periods it was reported. Starting at 9.97 in March 2020, the ratio improved to a peak of approximately 11.33 in September 2021, implying faster collection cycles during this time. However, following this peak, there was a gradual decline to 10.01 by June 2022, suggesting a slight slowdown in the collection efficiency despite increasing sales and receivables balances. Overall, the turnover ratio remained within a relatively narrow range, indicating consistent receivables management efficiency with minor fluctuations.
In summary, the company demonstrated robust sales growth over the analyzed time frame, with corresponding increases in trade receivables. Although receivables have grown, the efficiency in collecting these receivables has remained reasonably stable, with a modest decline in collection speed toward the most recent period. This denotes effective but slightly weakening credit management against a backdrop of rising sales volumes.
Payables Turnover
Keurig Dr Pepper Inc., payables turnover calculation (quarterly data)
| Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||
| Cost of sales | 1,778) | 1,428) | 1,619) | 1,415) | 1,370) | 1,302) | 1,353) | 1,316) | 1,302) | 1,161) | 1,241) | 1,245) | 1,186) | 1,106) | |||||
| Accounts payable | 4,950) | 4,510) | 4,316) | 4,072) | 3,976) | 3,871) | 3,740) | 3,517) | 3,377) | 3,238) | 3,176) | 2,976) | 2,909) | 2,558) | |||||
| Short-term Activity Ratio | |||||||||||||||||||
| Payables turnover1 | 1.26 | 1.29 | 1.32 | 1.34 | 1.34 | 1.36 | 1.37 | 1.43 | 1.47 | 1.49 | 1.50 | — | — | — | |||||
| Benchmarks | |||||||||||||||||||
| Payables Turnover, Competitors2 | |||||||||||||||||||
| Mondelēz International Inc. | 2.74 | 2.48 | 2.60 | 2.63 | 2.60 | 2.53 | 2.60 | — | — | — | — | — | — | — | |||||
| Philip Morris International Inc. | 3.25 | 3.24 | 3.01 | 3.49 | 3.66 | 3.72 | 3.44 | — | — | — | — | — | — | — | |||||
Based on: 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q2 2022 Calculation
Payables turnover
= (Cost of salesQ2 2022
+ Cost of salesQ1 2022
+ Cost of salesQ4 2021
+ Cost of salesQ3 2021)
÷ Accounts payable
= (1,778 + 1,428 + 1,619 + 1,415)
÷ 4,950 = 1.26
2 Click competitor name to see calculations.
The financial data reveals notable trends in cost of sales, accounts payable, and payables turnover over the examined periods.
- Cost of Sales
- The cost of sales exhibits a general upward trajectory throughout the periods, increasing from $1,106 million in March 2019 to $1,778 million in June 2022. While there are some fluctuations, the growth is particularly pronounced from late 2021 into early 2022, where the values jump significantly from $1,619 million in December 2021 to $1,778 million by mid-2022. This suggests increasing production or procurement costs, potentially reflecting higher input prices or increased sales volume.
- Accounts Payable
- Accounts payable has steadily increased within the observed timeframe, rising from $2,558 million in March 2019 to $4,950 million in June 2022. The continuous rise indicates an expanding level of obligations to suppliers, likely correlating with the growth in cost of sales. This may imply extended credit terms or higher purchasing activity, which could impact cash flow management.
- Payables Turnover Ratio
- The payables turnover ratio shows a gradual decline from 1.5 in March 2020 to 1.26 in June 2022. A decreasing ratio implies the company is taking longer to pay its suppliers on average, which aligns with the increasing accounts payable balances. This trend may reflect strategic payment term extensions or temporary cash preservation measures.
Overall, the data indicates a trend of rising costs and increasing liabilities, alongside a lengthening payment cycle. These patterns suggest the company is experiencing growth in operational scale but might also be managing working capital by delaying payments to suppliers.
Working Capital Turnover
Keurig Dr Pepper Inc., working capital turnover calculation (quarterly data)
| Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||
| Current assets | 3,771) | 3,490) | 3,057) | 2,803) | 2,616) | 2,665) | 2,388) | 2,416) | 2,240) | 2,277) | 2,273) | 2,269) | 2,221) | 2,162) | |||||
| Less: Current liabilities | 6,761) | 6,448) | 6,485) | 6,795) | 6,917) | 7,225) | 7,694) | 7,329) | 7,298) | 6,858) | 6,474) | 6,550) | 6,695) | 6,656) | |||||
| Working capital | (2,990) | (2,958) | (3,428) | (3,992) | (4,301) | (4,560) | (5,306) | (4,913) | (5,058) | (4,581) | (4,201) | (4,281) | (4,474) | (4,494) | |||||
| Net sales | 3,554) | 3,078) | 3,391) | 3,250) | 3,140) | 2,902) | 3,121) | 3,020) | 2,864) | 2,613) | 2,934) | 2,870) | 2,812) | 2,504) | |||||
| Short-term Activity Ratio | |||||||||||||||||||
| Working capital turnover1 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||
| Benchmarks | |||||||||||||||||||
| Working Capital Turnover, Competitors2 | |||||||||||||||||||
| Coca-Cola Co. | 15.83 | 11.91 | 14.90 | 4.58 | 5.07 | 6.14 | 7.12 | — | — | — | — | — | — | — | |||||
| Mondelēz International Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||
| PepsiCo Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||
| Philip Morris International Inc. | — | — | — | — | 10.52 | 10.81 | 15.29 | — | — | — | — | — | — | — | |||||
Based on: 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q2 2022 Calculation
Working capital turnover
= (Net salesQ2 2022
+ Net salesQ1 2022
+ Net salesQ4 2021
+ Net salesQ3 2021)
÷ Working capital
= (3,554 + 3,078 + 3,391 + 3,250)
÷ -2,990 = —
2 Click competitor name to see calculations.
The working capital figures demonstrate a negative trend throughout the examined quarters, indicating a consistent working capital deficit. The deficit deteriorated from -4,494 million USD as of March 31, 2019, reaching a low point of -5,306 million USD at the end of December 2020. Following this period, there is evidence of gradual improvement, with the deficit decreasing to approximately -2,958 million USD by the end of March 2022, and slightly worsening to -2,990 million USD at June 30, 2022. This suggests efforts towards stabilizing or improving the working capital position after a period of increasing deficits.
Net sales show a generally positive growth trajectory over the reviewed timeframe. Starting at 2,504 million USD in the first quarter of 2019, sales fluctuated with seasonal patterns but exhibited an overall upward trend. Notable sales increases occurred in the second half of 2020 and continued through 2021, peaking at 3,554 million USD in June 2022. This persistent growth in net sales reflects an expanding revenue base, despite occasional short-term fluctuations likely influenced by market conditions or seasonal demand.
No data is available for the working capital turnover ratio, which limits the assessment of the efficiency of working capital utilization relative to net sales. However, the negative working capital position combined with increasing net sales might indicate operational challenges in managing short-term assets and liabilities, but also potential strong sales growth overcoming working capital constraints.
Overall, the financial data reveals a company experiencing improving sales revenue coupled with a historically negative but gradually improving working capital position. The trends suggest an emphasis on managing liquidity and operational efficiency as sales grow, potentially requiring continued focus on working capital management strategies in subsequent periods.
Average Inventory Processing Period
Keurig Dr Pepper Inc., average inventory processing period calculation (quarterly data)
| 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 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||||||||||||
| Inventory turnover | 5.04 | 5.58 | 6.38 | 5.60 | 5.95 | 6.27 | 6.73 | 6.09 | 6.63 | 7.09 | 7.31 | — | — | — | |||||
| Short-term Activity Ratio (no. days) | |||||||||||||||||||
| Average inventory processing period1 | 72 | 65 | 57 | 65 | 61 | 58 | 54 | 60 | 55 | 52 | 50 | — | — | — | |||||
| Benchmarks (no. days) | |||||||||||||||||||
| Average Inventory Processing Period, Competitors2 | |||||||||||||||||||
| Coca-Cola Co. | 78 | 86 | 81 | 78 | 84 | 90 | 89 | — | — | — | — | — | — | — | |||||
| Mondelēz International Inc. | 60 | 58 | 57 | 62 | 64 | 60 | 60 | — | — | — | — | — | — | — | |||||
| PepsiCo Inc. | 50 | 46 | 43 | 45 | 54 | 51 | 48 | — | — | — | — | — | — | — | |||||
| Philip Morris International Inc. | 259 | 306 | 317 | 305 | 330 | 349 | 366 | — | — | — | — | — | — | — | |||||
Based on: 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q2 2022 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 5.04 = 72
2 Click competitor name to see calculations.
- Inventory Turnover
- The inventory turnover ratio, available from March 31, 2020, exhibits a declining trend over the analyzed periods. Starting at 7.31, it gradually decreases to a low of 5.04 by June 30, 2022. This decline indicates that the company is turning over its inventory less frequently, suggesting potential slowdowns in sales or increased inventory levels relative to cost of goods sold.
- Average Inventory Processing Period
- The average inventory processing period shows an upward trend over the same timeframe. Beginning at 50 days on March 31, 2020, it extends steadily to 72 days by June 30, 2022. This increase correlates inversely with inventory turnover, implying that inventory remains on hand for longer durations, which may indicate inefficiencies in inventory management or slower demand.
- Overall Insight
- The inverse movement between inventory turnover and the average inventory processing period highlights a consistent pattern: the company is experiencing slower inventory movement and longer holding periods. This could negatively impact liquidity and increase carrying costs, warranting closer operational review to optimize inventory management.
Average Receivable Collection Period
Keurig Dr Pepper Inc., average receivable collection period calculation (quarterly data)
| 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 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||||||||||||
| Receivables turnover | 10.01 | 10.59 | 11.05 | 10.91 | 11.33 | 11.18 | 11.09 | 10.88 | 11.17 | 10.83 | 9.97 | — | — | — | |||||
| Short-term Activity Ratio (no. days) | |||||||||||||||||||
| Average receivable collection period1 | 36 | 34 | 33 | 33 | 32 | 33 | 33 | 34 | 33 | 34 | 37 | — | — | — | |||||
| Benchmarks (no. days) | |||||||||||||||||||
| Average Receivable Collection Period, Competitors2 | |||||||||||||||||||
| Coca-Cola Co. | 40 | 42 | 33 | 38 | 40 | 41 | 35 | — | — | — | — | — | — | — | |||||
| Mondelēz International Inc. | 30 | 37 | 30 | 34 | 29 | 36 | 32 | — | — | — | — | — | — | — | |||||
| PepsiCo Inc. | 47 | 43 | 40 | 45 | 48 | 45 | 44 | — | — | — | — | — | — | — | |||||
| Philip Morris International Inc. | 44 | 42 | 36 | 40 | 43 | 41 | 37 | — | — | — | — | — | — | — | |||||
Based on: 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q2 2022 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 10.01 = 36
2 Click competitor name to see calculations.
- Receivables Turnover
- The receivables turnover ratio shows a generally stable pattern with moderate fluctuations over the periods analyzed. Starting at 9.97 in the first available quarter, it increased to a peak of 11.33 by September 2021, indicating an improvement in the efficiency of collection of receivables during this timeframe. Following this peak, the ratio experienced a slight decline, ending at 10.01 in June 2022. This suggests a mild reduction in turnover efficiency in the most recent quarter, but overall the turnover remains relatively high compared to earlier periods.
- Average Receivable Collection Period
- The average collection period in days exhibits an inverse trend to the receivables turnover, as expected. It decreased from 37 days to a low of 32 days around September 2021, indicating faster collection of receivables over this period. After reaching this low, the number of days increased gradually to 36 days by June 2022. This increase corresponds to the slight decline observed in the receivables turnover during the same timeframe and reflects a modest elongation in the time taken to collect receivables.
- Overall Trend
- Overall, the data suggest an improvement in receivables management efficiency up to late 2021, with quicker collections and higher turnover ratios. However, from late 2021 to mid-2022, there is a slight reversal in these trends, with receivables turnover decreasing and collection periods lengthening. Despite this, the overall efficiency remains relatively strong compared to earlier quarters.
Operating Cycle
Keurig Dr Pepper Inc., operating cycle calculation (quarterly data)
No. days
| 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 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||||||||||||
| Average inventory processing period | 72 | 65 | 57 | 65 | 61 | 58 | 54 | 60 | 55 | 52 | 50 | — | — | — | |||||
| Average receivable collection period | 36 | 34 | 33 | 33 | 32 | 33 | 33 | 34 | 33 | 34 | 37 | — | — | — | |||||
| Short-term Activity Ratio | |||||||||||||||||||
| Operating cycle1 | 108 | 99 | 90 | 98 | 93 | 91 | 87 | 94 | 88 | 86 | 87 | — | — | — | |||||
| Benchmarks | |||||||||||||||||||
| Operating Cycle, Competitors2 | |||||||||||||||||||
| Coca-Cola Co. | 118 | 128 | 114 | 116 | 124 | 131 | 124 | — | — | — | — | — | — | — | |||||
| Mondelēz International Inc. | 90 | 95 | 87 | 96 | 93 | 96 | 92 | — | — | — | — | — | — | — | |||||
| PepsiCo Inc. | 97 | 89 | 83 | 90 | 102 | 96 | 92 | — | — | — | — | — | — | — | |||||
| Philip Morris International Inc. | 303 | 348 | 353 | 345 | 373 | 390 | 403 | — | — | — | — | — | — | — | |||||
Based on: 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q2 2022 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 72 + 36 = 108
2 Click competitor name to see calculations.
- Inventory Processing Period
- The average inventory processing period demonstrates an increasing trend from March 31, 2020, to June 30, 2022. Starting at 50 days, it gradually extends to 72 days by mid-2022. Quarterly values show consistent growth, with occasional accelerations, particularly noticeable between March and December 2020 and again from March to June 2022. This elongation suggests that the company is taking progressively more time to process and move inventory, which may impact working capital efficiency.
- Receivable Collection Period
- The average receivable collection period remains relatively stable throughout the period from March 31, 2020, to June 30, 2022. Values fluctuate mildly between 33 and 37 days, indicating consistent credit and collection policies. There is a slight upward movement towards the end of the timeline, with a peak at 36 days in June 2022, which could hint at slower collections or changes in customer payment behavior.
- Operating Cycle
- The operating cycle exhibits an overall upward trajectory from 87 days in March 31, 2020, to 108 days in June 30, 2022. This increase reflects the combined effect of lengthening inventory processing and the relatively stable receivable collection period. The upward trend is steady, with periodic increases, particularly in late 2020 and early 2022. The elongation of the operating cycle indicates that the total time to convert inventory and receivables into cash is becoming longer, which could affect liquidity and operational cash flow.
Average Payables Payment Period
Keurig Dr Pepper Inc., average payables payment period calculation (quarterly data)
| 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 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||||||||||||
| Payables turnover | 1.26 | 1.29 | 1.32 | 1.34 | 1.34 | 1.36 | 1.37 | 1.43 | 1.47 | 1.49 | 1.50 | — | — | — | |||||
| Short-term Activity Ratio (no. days) | |||||||||||||||||||
| Average payables payment period1 | 290 | 282 | 276 | 273 | 272 | 268 | 266 | 256 | 249 | 245 | 243 | — | — | — | |||||
| Benchmarks (no. days) | |||||||||||||||||||
| Average Payables Payment Period, Competitors2 | |||||||||||||||||||
| Mondelēz International Inc. | 133 | 147 | 141 | 139 | 140 | 144 | 140 | — | — | — | — | — | — | — | |||||
| Philip Morris International Inc. | 112 | 113 | 121 | 105 | 100 | 98 | 106 | — | — | — | — | — | — | — | |||||
Based on: 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q2 2022 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 1.26 = 290
2 Click competitor name to see calculations.
- Payables Turnover
- The payables turnover ratio demonstrates a consistent declining trend from March 31, 2020, through June 30, 2022. Starting at 1.50, the ratio decreased steadily to 1.26 by the end of the analyzed period. This decline indicates that the company is paying its suppliers more slowly over time, signifying a lengthening accounts payable cycle.
- Average Payables Payment Period
- Corresponding to the decrease in payables turnover, the average payables payment period exhibits a steady upward trend. It increased from 243 days as of March 31, 2020, to 290 days by June 30, 2022. This increase further confirms a gradual extension in the time taken by the company to settle its payables during the reported periods.
- Overall Analysis
- The observable financial behavior suggests that the company has been systematically extending its payment terms to suppliers or delaying payments over the assessed timeframe. The inverse relationship between payables turnover and average payment period aligns with the company's apparent strategy to manage cash flow by elongating payment cycles. This trend may improve short-term liquidity but could impact supplier relationships if extended excessively.
Cash Conversion Cycle
Keurig Dr Pepper Inc., cash conversion cycle calculation (quarterly data)
No. days
| 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 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||||||||||||
| Average inventory processing period | 72 | 65 | 57 | 65 | 61 | 58 | 54 | 60 | 55 | 52 | 50 | — | — | — | |||||
| Average receivable collection period | 36 | 34 | 33 | 33 | 32 | 33 | 33 | 34 | 33 | 34 | 37 | — | — | — | |||||
| Average payables payment period | 290 | 282 | 276 | 273 | 272 | 268 | 266 | 256 | 249 | 245 | 243 | — | — | — | |||||
| Short-term Activity Ratio | |||||||||||||||||||
| Cash conversion cycle1 | -182 | -183 | -186 | -175 | -179 | -177 | -179 | -162 | -161 | -159 | -156 | — | — | — | |||||
| Benchmarks | |||||||||||||||||||
| Cash Conversion Cycle, Competitors2 | |||||||||||||||||||
| Mondelēz International Inc. | -43 | -52 | -54 | -43 | -47 | -48 | -48 | — | — | — | — | — | — | — | |||||
| Philip Morris International Inc. | 191 | 235 | 232 | 240 | 273 | 292 | 297 | — | — | — | — | — | — | — | |||||
Based on: 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q2 2022 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 72 + 36 – 290 = -182
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals notable trends in the company's working capital management metrics over the observed periods. The metrics considered include the average inventory processing period, average receivable collection period, average payables payment period, and the cash conversion cycle.
- Average Inventory Processing Period
- This metric exhibits a consistent upward trend, increasing from 50 days in March 2020 to 72 days by June 2022. The period lengthened steadily through the quarters, indicating that the company is taking longer to process its inventory over time. This could imply either growing inventory levels or slower inventory turnover, which may warrant monitoring for its impact on operational efficiency and liquidity.
- Average Receivable Collection Period
- The receivable collection period shows relative stability across the quarters, fluctuating narrowly between 32 and 37 days. It declined from 37 days in March 2020 to 32 days in September 2021, suggesting improved efficiency in collecting receivables, before slightly increasing again to 36 days by June 2022. These minor fluctuations indicate consistent credit policies and collection practices.
- Average Payables Payment Period
- There is a clear elongation in the payables payment period, rising from 243 days in March 2020 to 290 days by June 2022. This extension reflects a strategic approach to delay payments to suppliers, which may improve cash retention but could affect supplier relationships if prolonged excessively.
- Cash Conversion Cycle
- The cash conversion cycle remains negative throughout the available periods, ranging from -156 days in March 2020 to a low of -186 days in March 2022 before slightly improving to -182 days by June 2022. The negative value is primarily driven by the extended payables payment period exceeding the sum of inventory processing and receivable collection periods. This suggests that the company effectively utilizes supplier credit to finance its operations, reducing reliance on other external funding sources and potentially enhancing liquidity.
In summary, the data indicates a lengthening inventory processing period and payables payment period, stable receivable collection periods, and a consistently negative cash conversion cycle. These patterns reflect operational choices that extend payment terms with suppliers while managing receivables efficiently, resulting in a favorable cash conversion cycle that supports working capital optimization. Continuous monitoring is advisable to ensure the extended inventory processing and payables periods do not adversely affect operational flexibility or supplier relations.