Boston Beer Company Inc (SAM)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 1.80 | 2.03 | 1.95 | 2.14 | 2.25 | 2.19 | 1.97 | 1.94 | 2.07 | 1.69 | 1.55 | 1.45 | 1.35 | 1.51 | 1.62 | 1.66 | 1.59 | 1.72 | 1.46 | 1.80 |
| Quick ratio | 1.21 | 1.33 | 1.28 | 1.32 | 1.64 | 1.51 | 1.24 | 0.59 | 1.21 | 1.02 | 0.91 | 0.69 | 0.53 | 0.74 | 0.72 | 0.93 | 0.97 | 1.09 | 0.86 | 1.05 |
| Cash ratio | 0.91 | 0.97 | 0.81 | 0.97 | 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 |
The Boston Beer Company Inc's liquidity ratios demonstrate the firm's ability to meet its short-term obligations and manage its current assets efficiently.
The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, has shown fluctuating trends over the analyzed periods. The ratio has generally remained above 1, indicating that Boston Beer has more than enough current assets to cover its current liabilities, with a significant improvement in recent periods. This suggests that the company's short-term liquidity position has strengthened.
The quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, has also displayed variability over the analyzed periods. While the ratio has been lower than the current ratio, it has generally remained above 1, suggesting that Boston Beer can meet its short-term obligations without relying on selling inventory. The ratio saw some fluctuations but improved notably towards the end of the analysis period, indicating enhanced liquidity without inventory considerations.
The cash ratio, which is the most conservative measure of liquidity as it assesses the company's ability to cover current liabilities with cash and cash equivalents only, has shown a similar trend of fluctuations over the periods analyzed. Despite the declines at certain points, the ratio has generally improved, indicating the company's strengthening ability to cover short-term obligations with readily available cash resources.
Overall, the liquidity ratios suggest that Boston Beer Company Inc has been strengthening its liquidity position over the analyzed periods, with improvements in its ability to cover short-term obligations using current assets and cash resources. However, continued monitoring of these ratios will be essential to assess the company's ongoing liquidity management.
Additional liquidity measure
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The cash conversion cycle of Boston Beer Company Inc has displayed fluctuations over the periods analyzed. The cycle measures the time it takes for the company to convert its investments in inventory into cash from sales.
From March 31, 2020, to June 30, 2021, the company's cash conversion cycle decreased steadily from 35.47 days to 21.69 days, indicating an improvement in efficiency. However, there was an unexpected increase in the cycle in the subsequent periods, reaching a peak of 43.87 days on March 31, 2022. This increase could be a result of various factors such as changes in inventory management or sales patterns.
Subsequently, from March 31, 2022, to December 31, 2024, the cash conversion cycle fluctuated within a range of 14.92 to 35.79 days. The cycle showed some volatility during this period, which could be attributed to external market conditions or internal operational factors.
Overall, a lower cash conversion cycle indicates that the company is efficiently managing its working capital and generating cash flow from its operations more quickly. Fluctuations in the cycle may warrant further investigation into the company's inventory management practices and sales strategies to optimize cash flow efficiency.