Boston Beer Company Inc (SAM)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 76,250 | 67,263 | 14,553 | 191,960 | 110,041 |
| Total assets | US$ in thousands | 1,429,990 | 1,420,770 | 1,386,780 | 1,378,820 | 1,054,060 |
| ROA | 5.33% | 4.73% | 1.05% | 13.92% | 10.44% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $76,250K ÷ $1,429,990K
= 5.33%
To analyze Boston Beer Company Inc's return on assets (ROA) over the past five years, we observe that the ROA has fluctuated. ROA measures the company's efficiency in generating profits from its assets.
In 2023, the ROA stood at 5.33%, showing an increase from the previous year's 4.73%. This indicates that the company improved its ability to utilize its assets more effectively to generate profits.
In 2022, the ROA was 4.73%, a slight decrease from the ROA of 13.92% in 2020, which was a notable peak over the five-year period. This decline suggests a potential decrease in the company's efficiency in generating profits relative to its assets.
In 2021, the ROA was 1.05%, which was a significant drop from the prior year's 13.92%. This sharp decline may imply challenges or inefficiencies in asset utilization during that year.
Comparing the ROA of 2020 and 2019, there was a positive trend, with 13.92% in 2020 and 10.44% in 2019. These values indicate that the company was proficient in generating profits relative to its total assets during those years.
In summary, Boston Beer Company Inc's ROA has shown volatility over the past five years, with fluctuations indicating changes in the company's efficiency in utilizing assets to generate profits. An increasing ROA suggests improved asset utilization, while a decreasing ROA may signify challenges or inefficiencies in this aspect. It would be imperative for stakeholders to closely monitor Boston Beer Company Inc's ROA trends to assess its operational performance and financial health.
Peer comparison
Dec 31, 2023