Boston Beer Company Inc (SAM)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,429,990 | 1,420,770 | 1,386,780 | 1,378,820 | 1,054,060 |
| Total stockholders’ equity | US$ in thousands | 1,077,930 | 1,068,550 | 983,409 | 956,967 | 735,636 |
| Financial leverage ratio | 1.33 | 1.33 | 1.41 | 1.44 | 1.43 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,429,990K ÷ $1,077,930K
= 1.33
The financial leverage ratio of Boston Beer Company Inc has been relatively stable over the past five years, ranging from 1.33 to 1.44. This ratio indicates that the company has been financing its operations through a combination of debt and equity. A financial leverage ratio above 1 suggests that the company has more debt than equity in its capital structure.
The consistency in the financial leverage ratio over the years may imply that Boston Beer has maintained a prudent balance between debt and equity financing. A higher financial leverage ratio can indicate higher financial risk due to increased debt obligations, but it can also potentially amplify returns for shareholders during periods of growth and profitability.
Overall, the stability of the financial leverage ratio for Boston Beer Company Inc suggests a relatively consistent strategy in terms of capital structure management, with a reliance on a mix of debt and equity to fund its operations and growth.
Peer comparison
Dec 31, 2023