Boston Beer Company Inc (SAM)
Payables turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 1,156,256 | 1,192,442 | 1,204,198 | 1,225,525 | 1,228,348 | 1,194,653 | 1,244,893 | 1,221,541 | 1,259,830 | 1,256,180 | 1,119,440 | 1,034,838 | 921,980 | 835,824 | 774,248 | 691,139 | 635,658 | 585,420 | 544,432 | 516,157 |
| Payables | US$ in thousands | 87,245 | 114,699 | 120,780 | 100,670 | 84,248 | 151,443 | 134,215 | 112,711 | 85,920 | 136,462 | 201,043 | 157,085 | 121,647 | 108,600 | 93,576 | 92,247 | 76,374 | 71,035 | 74,906 | 61,620 |
| Payables turnover | 13.25 | 10.40 | 9.97 | 12.17 | 14.58 | 7.89 | 9.28 | 10.84 | 14.66 | 9.21 | 5.57 | 6.59 | 7.58 | 7.70 | 8.27 | 7.49 | 8.32 | 8.24 | 7.27 | 8.38 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $1,156,256K ÷ $87,245K
= 13.25
The payables turnover ratio measures how efficiently a company is managing its accounts payable by comparing the purchases made on credit to the average accounts payable balance. A higher payables turnover ratio indicates that the company is paying off its suppliers more quickly.
Analyzing the payables turnover ratio of Boston Beer Company Inc over the last few quarters, we can see some fluctuations in the ratio. The ratio ranged from a low of 5.57 to a high of 14.66, indicating varying levels of efficiency in managing its payables. Generally, a higher payables turnover ratio is preferred as it signifies prompt payment to suppliers and better cash flow management.
In the most recent quarter, the payables turnover ratio stands at 13.25, which is relatively high compared to the previous quarters, suggesting that Boston Beer Company Inc is efficiently managing its accounts payable by making payments to suppliers more frequently. This could lead to improved relationships with suppliers and better negotiation leverage for discounts and favorable payment terms. It is essential for the company to consistently monitor and manage its payables turnover ratio to ensure healthy supplier relationships and efficient working capital management.
Peer comparison
Dec 31, 2023