Boston Beer Company Inc (SAM)
Days of sales outstanding (DSO)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 29.23 | 23.44 | 17.32 | — | 31.29 | 20.61 | 15.51 | 12.60 | 18.97 | 17.50 | 16.63 | 17.87 | 19.57 | 16.28 | 14.23 | 19.81 | 19.57 | 15.72 | 13.94 | 19.09 | |
| DSO | days | 12.49 | 15.57 | 21.08 | — | 11.66 | 17.71 | 23.53 | 28.96 | 19.24 | 20.86 | 21.94 | 20.42 | 18.66 | 22.42 | 25.65 | 18.43 | 18.65 | 23.22 | 26.18 | 19.12 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 29.23
= 12.49
The Days Sales Outstanding (DSO) ratio for Boston Beer Company Inc has shown some fluctuations over the past several quarters. DSO represents the average number of days it takes for the company to collect revenue after making a sale. A lower DSO indicates that the company is collecting payments more quickly, which is generally favorable.
From the provided data, we see that the DSO for Boston Beer Company Inc was relatively stable around 11-13 days in the recent quarters of Dec 2023, Dec 2022, and Mar 2020, reflecting efficient accounts receivable management during these periods.
However, there were some fluctuations in the other quarters, with DSO reaching higher levels such as 28.96 days in Mar 2022 and 26.18 days in Mar 2019. These higher DSO figures suggest that the company took longer to collect payments from customers during those periods, potentially indicating challenges in managing accounts receivable efficiently.
Overall, it is essential for Boston Beer Company Inc to monitor and manage its DSO effectively to ensure timely collection of revenues and maintain healthy cash flows. Consistent efforts to optimize accounts receivable processes and maintain a balance between credit terms and collection efficiency can help the company improve its financial performance in the long run.
Peer comparison
Dec 31, 2023