Boston Beer Company Inc (SAM)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.33 | 1.33 | 1.41 | 1.44 | 1.43 |
The solvency ratios of Boston Beer Company Inc over the past five years indicate a consistently low level of debt relative to its assets, capital, and equity. The debt-to-assets, debt-to-capital, and debt-to-equity ratios have all been at 0.00, suggesting that the company has not relied heavily on debt to finance its operations or investments during this period.
However, the financial leverage ratio has shown some variability, ranging from 1.33 to 1.44. This ratio measures the extent to which the company is using debt to finance its assets, with higher values indicating higher financial risk. While the financial leverage ratio has increased slightly in recent years, it remains within a reasonable range and does not raise significant concerns about the company's solvency or ability to meet its financial obligations.
Overall, Boston Beer Company's solvency ratios demonstrate a conservative approach to debt management and a strong financial position, indicating a low risk of insolvency and a solid foundation for future growth and stability.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 9.10 | 35.45 | 72.70 | 1,227.17 | 61.30 |
The interest coverage ratio for Boston Beer Company Inc has displayed fluctuations over the last five years. In 2023, the interest coverage ratio stood at 9.10, indicating that the company was able to cover its interest expenses approximately 9 times from its operating income. This figure represents a significant decrease compared to the prior year's ratio of 35.45, suggesting a slight weakening in the company's ability to cover interest costs.
However, when looking at a longer historical perspective, Boston Beer Company's interest coverage has shown a considerable variation. In 2021 and 2019, the company exhibited strong interest coverage ratios of 72.70 and 61.30, respectively, indicating robust financial health and a high ability to meet interest obligations. The interest coverage ratio in 2020 sharply increased to 1,227.17, reflecting a significant improvement in the company's ability to cover interest expenses.
Overall, while the recent decline in the interest coverage ratio may raise some concerns, the historical trend indicates that Boston Beer Company has typically maintained a healthy cushion to cover its interest expenses, with occasional fluctuations explained by varying business conditions. Monitoring this ratio over time will be crucial in assessing the company's financial stability and ability to service its debt obligations.