Boston Beer Company Inc (SAM)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 9.99 | 8.27 | 8.45 | 7.04 | 5.99 | |
| DOH | days | 36.55 | 44.11 | 43.20 | 51.83 | 60.89 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 9.99
= 36.55
The Days of Inventory on Hand (DOH) for Boston Beer Company Inc have shown a decreasing trend over the past five years. In 2019, the company held inventory for an average of 60.89 days, which decreased to 51.83 days in 2020, further declining to 43.20 days in 2021, and then to 44.11 days in 2022. By the end of 2023, the DOH decreased to 36.55 days, indicating an improvement in inventory management efficiency.
The decline in DOH suggests that Boston Beer Company has been able to better manage its inventory levels, potentially leading to lower carrying costs and a more efficient use of working capital. Lower DOH values indicate that the company is selling off its inventory at a faster rate relative to the previous years, which can be a positive sign of operational effectiveness and potentially stronger demand for its products.
Overall, the decreasing trend in DOH for Boston Beer Company indicates an improvement in inventory turnover and management efficiency over the past five years, which could positively impact the company's financial performance and profitability.
Peer comparison
Dec 31, 2023