Boston Beer Company Inc (SAM)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,156,260 | 1,228,350 | 1,259,830 | 921,980 | 635,658 |
| Inventory | US$ in thousands | 115,773 | 148,450 | 149,118 | 130,910 | 106,038 |
| Inventory turnover | 9.99 | 8.27 | 8.45 | 7.04 | 5.99 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $1,156,260K ÷ $115,773K
= 9.99
Boston Beer Company Inc's inventory turnover has been showing a consistent upward trend over the last five years, with the ratio increasing from 5.99 in 2019 to 9.99 in 2023. This indicates that the company is managing its inventory more efficiently and selling its stock more quickly in recent years. A higher inventory turnover ratio is generally considered favorable as it implies that the company is effectively managing its inventory levels, minimizing carrying costs, and potentially reducing the risk of obsolete inventory.
The company's inventory turnover ratio of 9.99 in 2023 suggests that Boston Beer Company Inc sold its entire inventory approximately 10 times during the year, which is an improvement compared to previous years. This indicates strong sales performance and operational efficiency in managing inventory levels. It also suggests that the company has been successful in aligning its production levels with customer demand, resulting in a more streamlined and cost-effective supply chain.
Overall, the upward trend in Boston Beer Company Inc's inventory turnover ratio reflects positive operational performance and efficiency in managing inventory levels, which can lead to improved profitability and cash flow for the company.
Peer comparison
Dec 31, 2023