Boston Beer Company Inc (SAM)
Cash conversion cycle
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 36.55 | 44.11 | 43.20 | 51.83 | 60.89 |
| Days of sales outstanding (DSO) | days | 12.49 | 11.66 | 19.24 | 18.66 | 18.65 |
| Number of days of payables | days | 27.54 | 25.03 | 24.89 | 48.16 | 43.85 |
| Cash conversion cycle | days | 21.49 | 30.74 | 37.55 | 22.32 | 35.68 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 36.55 + 12.49 – 27.54
= 21.49
The cash conversion cycle for Boston Beer Company Inc has shown fluctuations over the past five years.
In 2023, the company's cash conversion cycle decreased to 21.49 days, indicating an improvement compared to the previous year. This suggests that Boston Beer Company was able to convert its investments in inventory and accounts receivable into cash more efficiently during the year.
In 2022, the cash conversion cycle increased to 30.74 days, reflecting a slowdown in the conversion of inventory and receivables into cash compared to 2021. This may indicate potential challenges in managing working capital or efficiency in the company's operations during that period.
Similarly, in 2021, the cash conversion cycle was 37.55 days, which was the highest among the five years presented. This longer cycle may imply that Boston Beer Company took more time to convert its investments in inventory and accounts receivable into cash during the year.
On the other hand, in 2020, the company's cash conversion cycle decreased to 22.32 days, indicating an improvement in efficiency compared to the prior year. This suggests that Boston Beer Company was able to manage its working capital more effectively in converting inventory and receivables into cash during that period.
Lastly, in 2019, the cash conversion cycle was 35.68 days, reflecting a longer cycle compared to 2020. This may suggest that Boston Beer Company faced challenges in optimizing its working capital efficiency in that specific year.
Overall, fluctuations in the cash conversion cycle can provide insights into the company's working capital management, operational efficiency, and potential liquidity challenges over the years analyzed.
Peer comparison
Dec 31, 2023