Boston Beer Company Inc (SAM)

Cash conversion cycle

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Days of inventory on hand (DOH) days 38.21 36.55 44.11 43.20 51.83
Days of sales outstanding (DSO) days 12.35 12.49 11.66 19.24 18.66
Number of days of payables days 28.46 27.54 25.03 24.89 48.16
Cash conversion cycle days 22.09 21.49 30.74 37.55 22.32

December 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 38.21 + 12.35 – 28.46
= 22.09

The cash conversion cycle of Boston Beer Company Inc has shown fluctuations over the past five years.

- As of December 31, 2020, the company's cash conversion cycle was 22.32 days, indicating that it took approximately 22 days for the company to convert its investments in raw materials into cash receipts from sales.
- By December 31, 2021, the cash conversion cycle increased to 37.55 days, suggesting a slower conversion process and potential challenges in managing working capital efficiently.
- The cycle improved slightly by December 31, 2022, to 30.74 days, but remained higher compared to the initial period, indicating room for further optimization in the company's operational activities.
- In December 31, 2023, the cycle decreased significantly to 21.49 days, reflecting better management of inventory, receivables, and payables, leading to a more efficient conversion of resources into cash.
- By December 31, 2024, the cycle remained relatively stable at 22.09 days, indicating that the company maintained its efficiency in converting its operational inputs into cash.

Overall, while there have been fluctuations in the cash conversion cycle of Boston Beer Company Inc, the company has demonstrated the ability to manage its working capital effectively over the analyzed period, with fluctuations potentially influenced by factors like production efficiency, inventory management, and sales cycle dynamics.


Peer comparison

Dec 31, 2024

Company name
Symbol
Cash conversion cycle
Boston Beer Company Inc
SAM
22.09
Molson Coors Brewing Co Class B
TAP
-34.69