Boston Beer Company Inc (SAM)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 503,510 | 423,269 | 345,341 | 413,173 | 218,648 |
| Total current liabilities | US$ in thousands | 223,288 | 204,267 | 255,106 | 259,423 | 180,649 |
| Current ratio | 2.25 | 2.07 | 1.35 | 1.59 | 1.21 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $503,510K ÷ $223,288K
= 2.25
The current ratio for Boston Beer Company Inc has demonstrated a fluctuating trend over the past five years. In 2023, the current ratio improved to 2.25 from 2.07 in 2022, indicating the company's ability to cover its short-term liabilities with its current assets has strengthened. This suggests that the company may have improved liquidity and financial health in the most recent year. However, the current ratio was significantly lower in 2021 at 1.35, indicating a potential liquidity strain where the company may have had difficulties meeting its short-term obligations with its current assets.
Looking back further, the current ratio was 1.59 in 2020 and 1.21 in 2019. The current ratio has shown a general upward trend over the years, indicating an enhanced ability to manage short-term liabilities with current assets. The current ratio of 2.25 in 2023 is relatively healthy and indicates that Boston Beer Company Inc has a good level of liquidity in the most recent year. It is essential for the company to maintain a stable or increasing current ratio to ensure its ability to meet short-term obligations efficiently.
Peer comparison
Dec 31, 2023