Boston Beer Company Inc (SAM)
Cash conversion cycle
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 38.21 | 52.09 | 49.41 | 46.93 | 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 |
| Days of sales outstanding (DSO) | days | 12.35 | 17.14 | 23.10 | 13.20 | 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 |
| Number of days of payables | days | 28.46 | 33.43 | 37.30 | 31.37 | 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 |
| Cash conversion cycle | days | 22.09 | 35.79 | 35.20 | 28.76 | 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 |
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, calculated as the sum of days in inventory plus days in accounts receivable minus days in accounts payable, has shown fluctuating trends over the last few years.
From March 31, 2020, to March 31, 2021, there was a gradual decrease in the cash conversion cycle, indicating an improvement in the company's efficiency in converting its investments in inventory and accounts receivable into cash. However, this trend reversed in the subsequent quarters, with the cycle increasing significantly by September 30, 2021, and remaining relatively high until June 30, 2022.
By March 31, 2023, there was a notable decrease in the cash conversion cycle, reaching its lowest point over the analyzed period. This signifies a positive development in the company's management of working capital, resulting in quicker conversion of resources into cash.
The cycle increased moderately by June 30, 2023, but continued to fluctuate within a certain range until December 31, 2024. Overall, it seems that Boston Beer Company Inc has taken measures to efficiently manage its inventory, receivables, and payables to optimize its cash conversion process, albeit with some variability in performance.
Peer comparison
Dec 31, 2024