Boston Beer Company Inc (SAM)

Liquidity ratios

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
Current ratio 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 1.21 1.26 0.95 1.98
Quick ratio 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 0.56 0.61 0.44 1.20
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

The current ratio for Boston Beer Company Inc has shown some fluctuations over the reported periods, ranging from 1.21 to 2.25. Overall, the company has maintained a current ratio above 1, indicating that it has more current assets than current liabilities to meet its short-term obligations. The average current ratio over the periods appears to be around 1.72.

In terms of the quick ratio, the company's ability to meet its short-term obligations with its most liquid assets has varied significantly, with values ranging from 0.44 to 1.64. The quick ratio has generally been lower compared to the current ratio, reflecting a lower reliance on inventory in meeting short-term obligations. The average quick ratio over the periods stands at approximately 1.03.

The cash ratio, which measures the company's immediate liquidity to cover short-term obligations, has also fluctuated notably, ranging from 0.02 to 1.34. This indicates that Boston Beer Company Inc has had varying levels of cash and cash equivalents relative to its current liabilities. The average cash ratio over the periods is approximately 0.56.

Overall, while the company has maintained current ratios above 1, indicating a healthy liquidity position, the quick and cash ratios show more variability and suggest a lower immediate liquidity position. Investors and stakeholders may closely monitor these ratios to assess the company's ability to meet its short-term financial obligations and manage liquidity risk effectively.

Additional liquidity measure

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 conversion cycle days 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 35.68 36.68 29.84 36.26

The cash conversion cycle of Boston Beer Company Inc has shown fluctuations over the past few quarters. The cash conversion cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash from sales. A shorter cash conversion cycle is generally favorable as it indicates efficient management of working capital.

From the data provided, we can observe that the cash conversion cycle for Boston Beer Company Inc has ranged from a low of 14.92 days in March 2023 to a high of 43.87 days in March 2022. This suggests some variability in the company's ability to efficiently manage its working capital over the periods examined.

In general, the company's cash conversion cycle trended downwards towards the end of 2023, indicating improvements in managing its cash flow and working capital efficiency. However, the longer cycles observed in earlier quarters, especially in the first half of 2022, may indicate potential challenges in areas such as inventory management or collections from customers.

Further analysis of the reasons behind these fluctuations in the cash conversion cycle would provide valuable insights into Boston Beer Company Inc's operational performance and efficiency in managing its working capital.