Boston Beer Company Inc (SAM)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 100,001 | 90,791 | 7,997 | 244,207 | 144,912 |
| Total assets | US$ in thousands | 1,429,990 | 1,420,770 | 1,386,780 | 1,378,820 | 1,054,060 |
| Operating ROA | 6.99% | 6.39% | 0.58% | 17.71% | 13.75% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $100,001K ÷ $1,429,990K
= 6.99%
Boston Beer Company Inc's operating return on assets (operating ROA) for the five-year period from 2019 to 2023 has shown variation in performance.
The company's operating ROA steadily increased from 2019 to 2020, reaching a peak of 17.71% in 2020. This high performance indicates that the company was efficiently generating operating income relative to its assets during that period.
However, in 2021, the operating ROA dropped significantly to 0.58%, indicating a sharp decline in the company's ability to generate operating income from its assets. This could suggest operational inefficiencies or challenges faced by the company during that year.
The operating ROA showed a slight improvement in 2022 compared to 2021, reaching 6.39%. This suggests a partial recovery in the company's operational efficiency in generating income from its assets.
In 2023, the operating ROA further improved to 6.99%, indicating continued efforts to enhance operational effectiveness and profitability relative to the company's asset base.
Overall, Boston Beer Company Inc's operating ROA has shown fluctuations over the five-year period, with variations in operational performance and efficiency in utilizing its assets to generate income. The company may need to focus on maintaining or improving its operating ROA to ensure sustainable profitability and operational excellence in the future.
Peer comparison
Dec 31, 2023