Boston Beer Company Inc (SAM)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,008,620 | 2,090,330 | 2,057,620 | 1,736,430 | 1,249,820 |
| Property, plant and equipment | US$ in thousands | 642,509 | 667,909 | 664,815 | 623,083 | 541,068 |
| Fixed asset turnover | 3.13 | 3.13 | 3.10 | 2.79 | 2.31 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $2,008,620K ÷ $642,509K
= 3.13
The fixed asset turnover ratio measures how efficiently Boston Beer Company Inc generates revenue from its fixed assets. The trend in the fixed asset turnover ratio shows an increasing trend over the years, from 2.31 in 2019 to 3.13 in 2023.
This indicates that the company has been able to generate more revenue per dollar invested in fixed assets over time. A higher fixed asset turnover ratio is generally preferred as it signifies better utilization of fixed assets to generate sales.
The consistent improvement in the fixed asset turnover ratio suggests that Boston Beer Company Inc has been effectively managing and utilizing its fixed assets to drive revenue growth and operational efficiency. This trend reflects positively on the company's operational performance and efficiency in utilizing its asset base.
Peer comparison
Dec 31, 2023