Boston Beer Company Inc (SAM)
Days of inventory on hand (DOH)
| 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 | 9.99 | 8.04 | 7.73 | 8.13 | 8.27 | 6.22 | 7.58 | 7.51 | 8.45 | 6.39 | 4.52 | 6.44 | 7.04 | 6.75 | 7.13 | 5.55 | 5.99 | 6.32 | 6.77 | 6.01 | |
| DOH | days | 36.55 | 45.43 | 47.19 | 44.90 | 44.11 | 58.71 | 48.16 | 48.58 | 43.20 | 57.08 | 80.72 | 56.67 | 51.83 | 54.08 | 51.16 | 65.77 | 60.89 | 57.75 | 53.88 | 60.72 |
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 has shown variability over the past years based on the data provided. The DOH measures the average number of days it takes for a company to sell its inventory, indicating how efficiently inventory is managed.
From the trend observed, the company's DOH has fluctuated within a range of 36.55 to 80.72 days over the last five years. A lower DOH implies quicker turnover of inventory, which can be positive as it indicates efficient inventory management and avoids excessive holding costs.
However, the increase in DOH seen in certain periods, such as in Jun 2021 and Dec 2020, may suggest potential issues with inventory control or slowing sales. A high DOH can tie up capital in unsold inventory and increase carrying costs.
It is important for Boston Beer Company Inc to monitor and manage its inventory levels effectively to strike a balance between maintaining sufficient stock to meet demand and avoiding excess inventory. Analyzing the reasons behind the fluctuations in DOH can provide insights into the company's inventory management practices and operational efficiency.
Peer comparison
Dec 31, 2023