Boston Beer Company Inc (SAM)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 298,491 | 180,560 | 26,853 | 163,282 | 36,670 |
| Short-term investments | US$ in thousands | — | — | — | 18 | — |
| Receivables | US$ in thousands | 68,708 | 66,798 | 108,440 | 88,751 | 63,863 |
| Total current liabilities | US$ in thousands | 223,288 | 204,267 | 255,106 | 259,423 | 180,649 |
| Quick ratio | 1.64 | 1.21 | 0.53 | 0.97 | 0.56 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($298,491K
+ $—K
+ $68,708K)
÷ $223,288K
= 1.64
The quick ratio of Boston Beer Company Inc has shown fluctuations over the past five years, indicating varying levels of liquidity. In 2023, the quick ratio improved significantly to 1.64, reflecting the company's ability to cover its short-term obligations with its most liquid assets. This increase from the previous year's quick ratio of 1.21 suggests a healthier liquidity position in the most recent fiscal year.
Comparing to the quick ratio five years ago, in 2019, which stood at 0.56, the company has made remarkable progress in improving its liquidity position. The quick ratio in 2023 also surpassed the ratios from 2021 and 2020, indicating a positive trend in the company's ability to meet its short-term obligations without relying heavily on inventory.
Overall, the upward trend in the quick ratio over the past five years reflects Boston Beer Company's efforts to strengthen its liquidity position, which is crucial for financial stability and meeting short-term liabilities efficiently.
Peer comparison
Dec 31, 2023