Boston Beer Company Inc (SAM)
Cash conversion cycle
| 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 |
| Cash conversion cycle | days | 21.49 | 25.89 | 31.67 | 14.92 | 30.74 | 30.15 | 32.34 | 43.87 | 37.55 | 38.29 | 37.11 | 21.69 | 22.32 | 29.07 | 32.69 | 35.47 | 35.68 | 36.68 | 29.84 | 36.26 |
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 varied over the past five years, ranging from 14.92 days to 43.87 days. This metric indicates the number of days it takes for the company to convert its resources invested in inventory and other inputs into cash received from sales.
A decreasing trend in the cash conversion cycle is generally positive, as it suggests the company is able to convert its resources into cash more efficiently. However, Boston Beer's cash conversion cycle has fluctuated over the years, with peaks in March 2022 and March 2020.
The lowest point in the cash conversion cycle was observed in March 2023 at 14.92 days, indicating efficient working capital management during that period. On the other hand, the highest point was in March 2022 at 43.87 days, reflecting a longer time taken to convert resources into cash.
Overall, Boston Beer Company Inc should focus on improving its cash conversion cycle by optimizing inventory management, speeding up accounts receivable collection, and extending accounts payable payment terms to enhance its cash flow efficiency and working capital management.
Peer comparison
Dec 31, 2023