Boston Beer Company Inc (SAM)
Payables 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 |
| Payables | US$ in thousands | 87,245 | 84,248 | 85,920 | 121,647 | 76,374 |
| Payables turnover | 13.25 | 14.58 | 14.66 | 7.58 | 8.32 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $1,156,260K ÷ $87,245K
= 13.25
The payables turnover ratio for Boston Beer Company Inc has seen fluctuations over the past five years. The ratio indicates how efficiently the company is managing its accounts payable by paying off its suppliers within a certain period.
In 2023, the payables turnover ratio was 13.25, a decrease from the previous year's ratio of 14.58. This suggests that the company took longer to pay off its suppliers in 2023 compared to 2022. However, the ratio remained relatively high, indicating a generally efficient management of accounts payable.
Compared to 2020 and 2019, where the ratios were 7.58 and 8.32 respectively, the company has improved its management of payables significantly in 2023. This shows that Boston Beer Company Inc has become more effective in paying off its suppliers promptly in recent years.
Overall, a higher payables turnover ratio indicates more efficient management of accounts payable, while a lower ratio may suggest delays in payment to suppliers. It is important for the company to strike a balance between timely payments to maintain good relationships with suppliers and optimizing cash flow.
Peer comparison
Dec 31, 2023