Analysis of Short-term (Operating) Activity Ratios
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
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | Keurig Dr Pepper Inc. inventory turnover ratio deteriorated from 2019 to 2020 and from 2020 to 2021. |
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Keurig Dr Pepper Inc. receivables turnover ratio improved from 2019 to 2020 but then slightly deteriorated from 2020 to 2021. |
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Keurig Dr Pepper Inc. payables turnover ratio decreased from 2019 to 2020 and from 2020 to 2021. |
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. | Keurig Dr Pepper Inc. number of days of inventory outstanding deteriorated from 2019 to 2020 and from 2020 to 2021. |
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | |
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | |
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | Keurig Dr Pepper Inc. number of days of payables outstanding increased from 2019 to 2020 and from 2020 to 2021. |
| Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. | Keurig Dr Pepper Inc. cash conversion cycle improved from 2019 to 2020 and from 2020 to 2021. |
Inventory Turnover
Keurig Dr Pepper Inc., inventory turnover calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Cost of sales | 5,706) | 5,132) | 4,778) | 3,560) | |
| Inventories | 894) | 762) | 654) | 626) | |
| Short-term Activity Ratio | |||||
| Inventory turnover1 | 6.38 | 6.73 | 7.31 | 5.69 | |
| Benchmarks | |||||
| Inventory Turnover, Competitors2 | |||||
| Altria Group Inc. | 5.96 | 3.98 | 3.09 | — | |
| Coca-Cola Co. | 4.50 | 4.11 | 4.33 | — | |
| PepsiCo Inc. | 8.53 | 7.62 | 9.03 | — | |
| Philip Morris International Inc. | 1.15 | 1.00 | 1.14 | — | |
| Inventory Turnover, Sector | |||||
| Food, Beverage & Tobacco | 3.94 | 3.30 | 3.42 | — | |
| Inventory Turnover, Industry | |||||
| Consumer Staples | 7.97 | 7.50 | 7.42 | — | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2021 Calculation
Inventory turnover = Cost of sales ÷ Inventories
= 5,706 ÷ 894 = 6.38
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | Keurig Dr Pepper Inc. inventory turnover ratio deteriorated from 2019 to 2020 and from 2020 to 2021. |
Receivables Turnover
Keurig Dr Pepper Inc., receivables turnover calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Net sales | 12,683) | 11,618) | 11,120) | 7,442) | |
| Trade accounts receivable, net | 1,148) | 1,048) | 1,115) | 1,150) | |
| Short-term Activity Ratio | |||||
| Receivables turnover1 | 11.05 | 11.09 | 9.97 | 6.47 | |
| Benchmarks | |||||
| Receivables Turnover, Competitors2 | |||||
| Altria Group Inc. | 553.47 | 190.90 | 165.20 | — | |
| Coca-Cola Co. | 11.01 | 10.50 | 9.38 | — | |
| PepsiCo Inc. | 9.16 | 8.37 | 8.59 | — | |
| Philip Morris International Inc. | 10.06 | 9.88 | 9.68 | — | |
| Receivables Turnover, Sector | |||||
| Food, Beverage & Tobacco | 11.43 | 10.85 | 10.61 | — | |
| Receivables Turnover, Industry | |||||
| Consumer Staples | 38.75 | 37.54 | 34.71 | — | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2021 Calculation
Receivables turnover = Net sales ÷ Trade accounts receivable, net
= 12,683 ÷ 1,148 = 11.05
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Keurig Dr Pepper Inc. receivables turnover ratio improved from 2019 to 2020 but then slightly deteriorated from 2020 to 2021. |
Payables Turnover
Keurig Dr Pepper Inc., payables turnover calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Cost of sales | 5,706) | 5,132) | 4,778) | 3,560) | |
| Accounts payable | 4,316) | 3,740) | 3,176) | 2,300) | |
| Short-term Activity Ratio | |||||
| Payables turnover1 | 1.32 | 1.37 | 1.50 | 1.55 | |
| Benchmarks | |||||
| Payables Turnover, Competitors2 | |||||
| Altria Group Inc. | 15.86 | 20.57 | 21.80 | — | |
| Coca-Cola Co. | 3.34 | 3.82 | 3.84 | — | |
| PepsiCo Inc. | 3.77 | 3.59 | 3.76 | — | |
| Philip Morris International Inc. | 3.01 | 3.44 | 4.57 | — | |
| Payables Turnover, Sector | |||||
| Food, Beverage & Tobacco | 3.82 | 4.03 | 4.32 | — | |
| Payables Turnover, Industry | |||||
| Consumer Staples | 6.91 | 7.01 | 7.11 | — | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2021 Calculation
Payables turnover = Cost of sales ÷ Accounts payable
= 5,706 ÷ 4,316 = 1.32
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Keurig Dr Pepper Inc. payables turnover ratio decreased from 2019 to 2020 and from 2020 to 2021. |
Working Capital Turnover
Keurig Dr Pepper Inc., working capital turnover calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Current assets | 3,057) | 2,388) | 2,273) | 2,159) | |
| Less: Current liabilities | 6,485) | 7,694) | 6,474) | 5,702) | |
| Working capital | (3,428) | (5,306) | (4,201) | (3,543) | |
| Net sales | 12,683) | 11,618) | 11,120) | 7,442) | |
| Short-term Activity Ratio | |||||
| Working capital turnover1 | — | — | — | — | |
| Benchmarks | |||||
| Working Capital Turnover, Competitors2 | |||||
| Altria Group Inc. | — | — | — | — | |
| Coca-Cola Co. | 14.90 | 7.12 | — | — | |
| PepsiCo Inc. | — | — | — | — | |
| Philip Morris International Inc. | — | 15.29 | 17.73 | — | |
| Working Capital Turnover, Sector | |||||
| Food, Beverage & Tobacco | — | 37.68 | — | — | |
| Working Capital Turnover, Industry | |||||
| Consumer Staples | — | — | — | — | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2021 Calculation
Working capital turnover = Net sales ÷ Working capital
= 12,683 ÷ -3,428 = —
2 Click competitor name to see calculations.
Average Inventory Processing Period
Keurig Dr Pepper Inc., average inventory processing period calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|
| Selected Financial Data | |||||
| Inventory turnover | 6.38 | 6.73 | 7.31 | 5.69 | |
| Short-term Activity Ratio (no. days) | |||||
| Average inventory processing period1 | 57 | 54 | 50 | 64 | |
| Benchmarks (no. days) | |||||
| Average Inventory Processing Period, Competitors2 | |||||
| Altria Group Inc. | 61 | 92 | 118 | — | |
| Coca-Cola Co. | 81 | 89 | 84 | — | |
| PepsiCo Inc. | 43 | 48 | 40 | — | |
| Philip Morris International Inc. | 317 | 366 | 321 | — | |
| Average Inventory Processing Period, Sector | |||||
| Food, Beverage & Tobacco | 93 | 111 | 107 | — | |
| Average Inventory Processing Period, Industry | |||||
| Consumer Staples | 46 | 49 | 49 | — | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2021 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 6.38 = 57
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. | Keurig Dr Pepper Inc. number of days of inventory outstanding deteriorated from 2019 to 2020 and from 2020 to 2021. |
Average Receivable Collection Period
Keurig Dr Pepper Inc., average receivable collection period calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|
| Selected Financial Data | |||||
| Receivables turnover | 11.05 | 11.09 | 9.97 | 6.47 | |
| Short-term Activity Ratio (no. days) | |||||
| Average receivable collection period1 | 33 | 33 | 37 | 56 | |
| Benchmarks (no. days) | |||||
| Average Receivable Collection Period, Competitors2 | |||||
| Altria Group Inc. | 1 | 2 | 2 | — | |
| Coca-Cola Co. | 33 | 35 | 39 | — | |
| PepsiCo Inc. | 40 | 44 | 43 | — | |
| Philip Morris International Inc. | 36 | 37 | 38 | — | |
| Average Receivable Collection Period, Sector | |||||
| Food, Beverage & Tobacco | 32 | 34 | 34 | — | |
| Average Receivable Collection Period, Industry | |||||
| Consumer Staples | 9 | 10 | 11 | — | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2021 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 11.05 = 33
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. |
Operating Cycle
Keurig Dr Pepper Inc., operating cycle calculation, comparison to benchmarks
No. days
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|
| Selected Financial Data | |||||
| Average inventory processing period | 57 | 54 | 50 | 64 | |
| Average receivable collection period | 33 | 33 | 37 | 56 | |
| Short-term Activity Ratio | |||||
| Operating cycle1 | 90 | 87 | 87 | 120 | |
| Benchmarks | |||||
| Operating Cycle, Competitors2 | |||||
| Altria Group Inc. | 62 | 94 | 120 | — | |
| Coca-Cola Co. | 114 | 124 | 123 | — | |
| PepsiCo Inc. | 83 | 92 | 83 | — | |
| Philip Morris International Inc. | 353 | 403 | 359 | — | |
| Operating Cycle, Sector | |||||
| Food, Beverage & Tobacco | 125 | 145 | 141 | — | |
| Operating Cycle, Industry | |||||
| Consumer Staples | 55 | 59 | 60 | — | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2021 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 57 + 33 = 90
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. |
Average Payables Payment Period
Keurig Dr Pepper Inc., average payables payment period calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|
| Selected Financial Data | |||||
| Payables turnover | 1.32 | 1.37 | 1.50 | 1.55 | |
| Short-term Activity Ratio (no. days) | |||||
| Average payables payment period1 | 276 | 266 | 243 | 236 | |
| Benchmarks (no. days) | |||||
| Average Payables Payment Period, Competitors2 | |||||
| Altria Group Inc. | 23 | 18 | 17 | — | |
| Coca-Cola Co. | 109 | 96 | 95 | — | |
| PepsiCo Inc. | 97 | 102 | 97 | — | |
| Philip Morris International Inc. | 121 | 106 | 80 | — | |
| Average Payables Payment Period, Sector | |||||
| Food, Beverage & Tobacco | 96 | 91 | 85 | — | |
| Average Payables Payment Period, Industry | |||||
| Consumer Staples | 53 | 52 | 51 | — | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2021 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 1.32 = 276
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | Keurig Dr Pepper Inc. number of days of payables outstanding increased from 2019 to 2020 and from 2020 to 2021. |
Cash Conversion Cycle
Keurig Dr Pepper Inc., cash conversion cycle calculation, comparison to benchmarks
No. days
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|
| Selected Financial Data | |||||
| Average inventory processing period | 57 | 54 | 50 | 64 | |
| Average receivable collection period | 33 | 33 | 37 | 56 | |
| Average payables payment period | 276 | 266 | 243 | 236 | |
| Short-term Activity Ratio | |||||
| Cash conversion cycle1 | -186 | -179 | -156 | -116 | |
| Benchmarks | |||||
| Cash Conversion Cycle, Competitors2 | |||||
| Altria Group Inc. | 39 | 76 | 103 | — | |
| Coca-Cola Co. | 5 | 28 | 28 | — | |
| PepsiCo Inc. | -14 | -10 | -14 | — | |
| Philip Morris International Inc. | 232 | 297 | 279 | — | |
| Cash Conversion Cycle, Sector | |||||
| Food, Beverage & Tobacco | 29 | 54 | 56 | — | |
| Cash Conversion Cycle, Industry | |||||
| Consumer Staples | 2 | 7 | 9 | — | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2021 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 57 + 33 – 276 = -186
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. | Keurig Dr Pepper Inc. cash conversion cycle improved from 2019 to 2020 and from 2020 to 2021. |