Boston Beer Company Inc (SAM)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| 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 | 1.36 | 1.33 | 1.33 | 1.41 | 1.44 |
Based on the provided data, Boston Beer Company Inc shows a strong solvency position as indicated by its consistently low debt-to-assets, debt-to-capital, and debt-to-equity ratios of 0.00 from 2020 to 2024. These ratios suggest that the company has minimal debt relative to its total assets, capital, and equity, indicating a low financial risk and robust financial health.
Additionally, the financial leverage ratio, which measures the extent to which the company relies on debt financing, has shown a stable trend over the years, ranging from 1.33 to 1.44. This suggests that the company has maintained a reasonable level of leverage in its capital structure, which is in line with industry norms.
Overall, based on the analysis of solvency ratios, Boston Beer Company Inc appears to have a solid financial position with minimal debt levels and a balanced capital structure, indicating its ability to meet its financial obligations and remain financially stable in the long term.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | — | 9.10 | 35.45 | 72.70 | 1,227.17 |
The interest coverage ratio is a financial metric that measures a company's ability to cover its interest expenses with its operating income. Boston Beer Company Inc's interest coverage ratio has experienced significant fluctuations over the past few years.
As of December 31, 2020, the interest coverage ratio stood at an exceptionally high level of 1,227.17, indicating a robust ability to meet its interest obligations comfortably with its operating income. However, this ratio sharply declined to 72.70 as of December 31, 2021, suggesting a substantial decrease in the company's ability to cover its interest expenses.
The trend continued with the interest coverage ratio further dropping to 35.45 as of December 31, 2022, and then to 9.10 as of December 31, 2023. These declining ratios imply an increasing financial strain on the company's ability to cover its interest payments with its operating income.
It is worth noting that the data for December 31, 2024, is not provided (marked as "N/A"), which makes it challenging to assess the company's current interest coverage position.
Overall, the significant fluctuations in Boston Beer Company Inc's interest coverage ratio indicate varying levels of financial health and ability to meet its interest obligations over the period under review. Continuous monitoring of this ratio is crucial for assessing the company's financial stability and debt servicing capacity.