Boston Beer Company Inc (SAM)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,008,620 | 2,090,330 | 2,057,620 | 1,736,430 | 1,249,820 |
| Total current assets | US$ in thousands | 503,510 | 423,269 | 345,341 | 413,173 | 218,648 |
| Total current liabilities | US$ in thousands | 223,288 | 204,267 | 255,106 | 259,423 | 180,649 |
| Working capital turnover | 7.17 | 9.54 | 22.80 | 11.29 | 32.89 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $2,008,620K ÷ ($503,510K – $223,288K)
= 7.17
The working capital turnover for Boston Beer Company Inc has exhibited fluctuations over the past five years. In 2023, the working capital turnover ratio was 7.17, indicating that the company generated $7.17 in net sales for every dollar of working capital during the year. This ratio decreased compared to the previous year, where it stood at 9.54 in 2022.
Despite the decline in 2023, the company's working capital turnover remains relatively efficient when benchmarked against 2021 and 2020 figures. In 2021, the ratio was significantly higher at 22.80, indicating a robust efficiency in utilizing working capital to generate sales. The ratio decreased in 2022 but remained above the levels seen in 2020 and 2019, suggesting that the company has been able to effectively manage its working capital in recent years.
The downward trend in the working capital turnover from 2021 to 2023 may imply a decrease in the company's ability to generate sales efficiently using its working capital. Further analysis of the company's operational and financial activities may be required to understand the factors contributing to the fluctuations in the working capital turnover ratio.
Peer comparison
Dec 31, 2023