Boston Beer Company Inc (SAM)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 75,973 | 100,001 | 90,791 | 7,997 | 244,207 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 916,187 | 1,077,930 | 1,068,550 | 983,409 | 956,967 |
| Return on total capital | 8.29% | 9.28% | 8.50% | 0.81% | 25.52% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $75,973K ÷ ($—K + $916,187K)
= 8.29%
Boston Beer Company Inc's return on total capital has fluctuated over the past five years. In 2020, the return was robust at 25.52%, indicating the company efficiently utilized its total capital to generate profits. However, in 2021, there was a significant decrease, with the return plummeting to 0.81%, suggesting a decline in the company's profitability relative to its invested capital.
Subsequently, in 2022, there was a slight improvement as the return on total capital increased to 8.50%. This shows a partial recovery from the previous year's decline. In 2023, there was further improvement as the return rose to 9.28%, indicating that the company's capital utilization efficiency continued to strengthen.
In the most recent year, 2024, the return on total capital decreased slightly to 8.29%. Although it was slightly lower than the previous year, the return remained at a respectable level, indicating that Boston Beer Company Inc still effectively generates profits from its total capital.
Overall, Boston Beer Company Inc's return on total capital has shown some fluctuations in recent years, but the company seems to be maintaining a decent level of profitability relative to its invested capital, with a focus on optimizing capital utilization.
Peer comparison
Dec 31, 2024