Boston Beer Company Inc (SAM)
Financial leverage ratio
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,429,990 | 1,516,890 | 1,492,550 | 1,392,510 | 1,420,770 | 1,530,700 | 1,480,470 | 1,390,000 | 1,386,780 | 1,463,530 | 1,560,950 | 1,464,170 | 1,378,820 | 1,312,340 | 1,208,250 | 1,193,560 | 1,054,060 | 1,016,180 | 813,330 | 704,020 |
| Total stockholders’ equity | US$ in thousands | 1,077,930 | 1,120,780 | 1,087,190 | 1,041,360 | 1,068,550 | 1,073,990 | 1,044,040 | 984,924 | 983,409 | 1,029,380 | 1,084,140 | 1,028,720 | 956,967 | 918,530 | 827,483 | 758,236 | 735,636 | 718,980 | 522,801 | 489,818 |
| Financial leverage ratio | 1.33 | 1.35 | 1.37 | 1.34 | 1.33 | 1.43 | 1.42 | 1.41 | 1.41 | 1.42 | 1.44 | 1.42 | 1.44 | 1.43 | 1.46 | 1.57 | 1.43 | 1.41 | 1.56 | 1.44 |
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 shown fluctuations over the past few quarters, ranging from 1.33 to 1.57. This ratio indicates that the company has been using debt to finance a portion of its operations and investments.
A higher financial leverage ratio suggests that the company is more reliant on debt financing, which can increase the risk of financial distress, especially during economic downturns or periods of high interest rates. On the other hand, a lower financial leverage ratio indicates a more conservative capital structure with a greater reliance on equity.
It is essential for investors and stakeholders to closely monitor the company's financial leverage ratio to assess its ability to meet its debt obligations and manage financial risks effectively. Additionally, management should maintain a balance between debt and equity financing to ensure long-term financial stability and growth.
Peer comparison
Dec 31, 2023