Boston Beer Company Inc (SAM)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 298,491 | 310,778 | 207,755 | 122,560 | 180,560 | 222,050 | 137,801 | 15,769 | 26,853 | 86,504 | 102,953 | 144,658 | 163,282 | 157,100 | 86,716 | 129,504 | 36,670 | 27,128 | 3,017 | 102,887 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | 18 | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 223,288 | 264,754 | 262,807 | 207,639 | 204,267 | 313,597 | 290,929 | 245,534 | 255,106 | 285,487 | 317,351 | 271,629 | 259,423 | 231,939 | 219,808 | 186,784 | 180,649 | 166,484 | 188,266 | 132,002 |
| Cash ratio | 1.34 | 1.17 | 0.79 | 0.59 | 0.88 | 0.71 | 0.47 | 0.06 | 0.11 | 0.30 | 0.32 | 0.53 | 0.63 | 0.68 | 0.39 | 0.69 | 0.20 | 0.16 | 0.02 | 0.78 |
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 is a liquidity ratio that measures a company's ability to cover its short-term liabilities with its available cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term obligations.
Based on the data provided, Boston Beer Company Inc's cash ratio has shown fluctuations over the past few years. The ratio ranged from a low of 0.02 in the first quarter of 2019 to a high of 1.34 at the end of 2023.
The cash ratio was relatively low in the earlier years, but there has been a significant increase in recent periods, reaching above 1.0 in the most recent quarter. This indicates that Boston Beer has significantly improved its ability to cover its short-term liabilities with its available cash and cash equivalents.
Overall, the trend in Boston Beer Company Inc's cash ratio suggests an improvement in the company's liquidity position and its ability to meet its short-term financial obligations. However, it is essential to monitor the ratio over time to ensure continued financial stability and strong liquidity management.
Peer comparison
Dec 31, 2023