Boston Beer Company

1136 Words Mar 28th, 2008 5 Pages
The Boston Beer Company

The Boston Beer Company, Inc. produces and sells low alcohol beverages primarily in the domestic market, and in certain selected international markets under the trade mark names "The Boston Beer Company," "Twisted Tea Brewing Company" and "HardCore Cider Company." The Boston Beer Company is mostly known for producing Sam Adams, Sam Adams Light and other various styles of craft beer. In my research, the ratios from chapters 16 and 17 that I could compute was the working capital, current ratio, acid-test ratio, inventory turnover ratio with the average sales period, and the debt to equity ratio.
Starting with the working capital, in 2005 the total was $60,450 and 2006 totaled $79,692. Working capital is the
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This was due to an 18.2% increase in shipment volume and a 1.3% increase in net revenue per barrel. Volume increased by .2 million barrels to 1.6 million barrels for the year ended December 30, 2006 as compared to 1.4 million barrels for the year ended December 31, 2005. The increase in volume was a result of increases in the Samuel Adams brand family and the Twisted Tea brand family. Gross profit in 2005 was at $103.72 (59.4%) per barrel at year end and in 2006 it fell to $101.91 (57.6%) per barrel. The decrease in gross profit was primarily due to an increase in cost of goods sold, as to compared to the prior year which was partially offset by price increases. Cost of goods sold increased to $75.16 per barrel for the year ended December 30, 2006 as to the previous year which was $70.99. The increase was caused by higher packaging material and supply chain cost, as well as shifts in the product and package mix. In conclusion, 2007 shipments and orders-in-hand suggest that core shipments for the first fiscal quarter are up approximately 23% as compared to the same quarter in 2006. The Boston Beer Company 's 2007 plan calls for depletion growth in the double digits, which is slightly lower than 2006 trends. However, the company 's pricing plan includes a 3% increase which should be attainable given the

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