Boston Beer Company Inc (SAM)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 211,819 | 298,491 | 180,560 | 26,853 | 163,282 |
| Short-term investments | US$ in thousands | — | — | — | — | 18 |
| Receivables | US$ in thousands | 68,104 | 68,708 | 66,798 | 108,440 | 88,751 |
| Total current liabilities | US$ in thousands | 231,629 | 223,288 | 204,267 | 255,106 | 259,423 |
| Quick ratio | 1.21 | 1.64 | 1.21 | 0.53 | 0.97 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($211,819K
+ $—K
+ $68,104K)
÷ $231,629K
= 1.21
The quick ratio, also known as the acid-test ratio, is a liquidity ratio that measures a company's ability to meet its short-term obligations with its most liquid assets.
Analyzing the quick ratio of Boston Beer Company Inc over the years, we observe fluctuations in the company's liquidity position.
As of December 31, 2020, the quick ratio stood at 0.97, indicating that the company had almost enough liquid assets to cover its current liabilities. However, this ratio decreased significantly by December 31, 2021, dropping to 0.53, suggesting potential challenges in meeting short-term obligations with its liquid assets.
Subsequently, by December 31, 2022, the quick ratio improved to 1.21, showing a stronger ability to cover short-term liabilities with available liquid assets. This trend continued to December 31, 2023, where the quick ratio increased further to 1.64, reflecting an even healthier liquidity position.
However, by December 31, 2024, the quick ratio slightly decreased to 1.21, though still indicating a relatively strong ability to meet short-term obligations with liquid assets.
In summary, the fluctuations in Boston Beer Company Inc's quick ratio over the years suggest varying levels of liquidity, with improvements seen in some years and slight declines in others. It is important for investors and analysts to closely monitor these changes to assess the company's liquidity risk and financial health.
Peer comparison
Dec 31, 2024