Boston Beer Company Inc (SAM)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 298,491 | 180,560 | 26,853 | 163,282 | 36,670 |
| Short-term investments | US$ in thousands | — | — | — | 18 | — |
| Total current liabilities | US$ in thousands | 223,288 | 204,267 | 255,106 | 259,423 | 180,649 |
| Cash ratio | 1.34 | 0.88 | 0.11 | 0.63 | 0.20 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($298,491K
+ $—K)
÷ $223,288K
= 1.34
The cash ratio of Boston Beer Company Inc has fluctuated over the past five years, indicating the company's ability to cover its short-term obligations with its available cash and cash equivalents.
The ratio has shown a significant improvement from 2019 to 2023, increasing from 0.20 to 1.34. This suggests that the company has strengthened its liquidity position and is better positioned to meet its short-term debt and expenses solely from its cash reserves.
In 2021, the cash ratio was at its lowest point of 0.11, indicating a relatively weak liquidity position. However, the company managed to improve this significantly in the following years, reaching 0.88 in 2022 and further increasing to 1.34 in 2023.
Overall, the trend in the cash ratio of Boston Beer Company Inc indicates a positive improvement in liquidity management over the period, leading to a stronger ability to cover short-term obligations with cash on hand.
Peer comparison
Dec 31, 2023