Boston Beer Company Inc (SAM)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 59,695 | 76,250 | 67,263 | 14,553 | 191,960 |
| Total stockholders’ equity | US$ in thousands | 916,187 | 1,077,930 | 1,068,550 | 983,409 | 956,967 |
| ROE | 6.52% | 7.07% | 6.29% | 1.48% | 20.06% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $59,695K ÷ $916,187K
= 6.52%
Boston Beer Company Inc's return on equity (ROE) has fluctuated over the years, as evidenced by the data provided. In 2020, the ROE was 20.06%, indicating that the company generated a strong return for its shareholders relative to the equity invested. However, there was a significant decrease in 2021, with the ROE plummeting to 1.48%, which may raise concerns about the company's ability to generate profits from the shareholders' equity.
Subsequently, there was a slight improvement in 2022 with an ROE of 6.29%, followed by a further increase to 7.07% in 2023. This upward trend suggests that the company may be enhancing its efficiency in utilizing equity to generate profits. However, in 2024, the ROE decreased slightly to 6.52%, indicating a potential slowdown in the company's profitability growth compared to the previous year.
Overall, it is crucial for Boston Beer Company Inc to closely monitor its ROE performance and implement strategies to sustain or enhance its returns for shareholders. Fluctuations in ROE can provide insights into the company's profitability, financial health, and efficiency in utilizing shareholder equity to generate profits.
Peer comparison
Dec 31, 2024