Boston Beer Company Inc (SAM)

Activity ratios

Short-term

Turnover ratios

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
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
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
Working capital turnover 7.17 6.55 8.09 10.55 9.54 9.25 12.33 17.50 22.80 14.90 10.63 10.90 11.29 9.38 14.50 8.90 32.89 27.35 — 8.20

Based on the activity ratios of Boston Beer Company Inc over the past few quarters, we can observe the following trends:

1. Inventory Turnover: Boston Beer's inventory turnover has been fluctuating over the quarters, ranging from a low of 4.52 to a high of 9.99. The trend shows variability but overall improvement in managing inventory efficiently.

2. Receivables Turnover: The receivables turnover ratio has also shown variability, with values ranging from 12.60 to 31.29. This indicates that the company has been effective in collecting receivables from customers, with some quarters performing better than others.

3. Payables Turnover: Boston Beer's payables turnover has fluctuated as well, with values ranging from 5.57 to 14.66. The company's ability to manage its payables has been inconsistent, with some quarters showing better performance than others.

4. Working Capital Turnover: The working capital turnover ratio has shown a wide range of values, indicating fluctuations in how efficiently the company is using its working capital to generate revenue. The ratio has ranged from 6.55 to 32.89, with some quarters showcasing strong efficiency in capital utilization.

Overall, while Boston Beer Company Inc has shown variability in its activity ratios over the past few quarters, there are signs of improvement in managing inventory, collecting receivables, and efficiently utilizing working capital. However, there is room for consistency in managing payables effectively to optimize working capital turnover.

Average number of days

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
Days of inventory on hand (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
Days of sales outstanding (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
Number of days of payables days 27.54 35.11 36.61 29.98 25.03 46.27 39.35 33.68 24.89 39.65 65.55 55.41 48.16 47.43 44.11 48.72 43.85 44.29 50.22 43.57

Days of inventory on hand (DOH) measures how many days it takes for a company to sell its inventory. Boston Beer Company's DOH fluctuated over the past few quarters, ranging from 36.55 days to 80.72 days. A lower number indicates efficient inventory management.

Days of sales outstanding (DSO) shows how many days it takes for a company to collect revenue after making a sale. Boston Beer's DSO varied, with values from 11.66 days to 28.96 days. A lower DSO is preferable as it signifies faster cash conversion.

Number of days of payables illustrates how long a company takes to pay its suppliers. Boston Beer's payables days ranged from 24.89 days to 65.55 days. Higher payables days may imply better cash flow management but could strain relationships with suppliers if too long.

Overall, Boston Beer's activity ratios suggest fluctuations in inventory management, receivables collection, and payables payment efficiency. Monitoring these ratios can help assess the company's operational effectiveness and cash flow dynamics.

Long-term

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
Fixed asset turnover 3.13 3.19 3.13 3.12 3.13 2.97 2.90 2.90 3.10 3.26 3.16 3.07 2.79 2.68 2.59 2.42 2.31 2.25 2.67 2.65
Total asset turnover 1.40 1.36 1.38 1.49 1.47 1.30 1.32 1.40 1.48 1.48 1.35 1.33 1.26 1.20 1.21 1.11 1.19 1.16 1.36 1.50

The fixed asset turnover ratio for Boston Beer Company Inc has shown a relatively stable trend over the past few quarters, averaging around 3.10. This indicates that the company is generating approximately $3.10 in sales for every dollar invested in fixed assets, such as property, plant, and equipment. The consistent performance of this ratio suggests efficient utilization of fixed assets to generate revenue.

On the other hand, the total asset turnover ratio has exhibited more variability, ranging from 1.11 to 1.50 over the same period. Overall, the ratio averages around 1.36, implying that the company generates $1.36 in sales for every dollar of total assets. The fluctuation in this ratio may signal changes in the company's asset utilization efficiency or sales performance.

Comparing the two ratios, it appears that Boston Beer Company Inc is more efficient in utilizing its fixed assets to generate revenue, as evidenced by the higher fixed asset turnover compared to total asset turnover. This could suggest that the company's fixed assets are a key driver of its revenue generation, highlighting the importance of managing and optimizing these assets effectively for continued financial performance and growth.