Boston Beer Company Inc (SAM)
Interest coverage
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 100,001 | 90,791 | 7,997 | 244,207 | 144,912 |
| Interest expense | US$ in thousands | 10,995 | 2,561 | 110 | 199 | 2,364 |
| Interest coverage | 9.10 | 35.45 | 72.70 | 1,227.17 | 61.30 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $100,001K ÷ $10,995K
= 9.10
The interest coverage ratio measures a company's ability to service its interest expenses with its earnings before interest and taxes (EBIT). A higher interest coverage ratio indicates that the company is more capable of meeting its interest obligations.
In the case of Boston Beer Company Inc, the interest coverage ratio has fluctuated over the years. In 2023, the ratio stands at 9.10, indicating that the company's EBIT is sufficient to cover its interest expenses. The ratio was substantially lower in 2020, at 1,227.17, due to a significant increase in EBIT. This exceptionally high ratio suggests an exceptionally strong ability to cover interest expenses.
The trends in Boston Beer Company Inc's interest coverage ratio highlight the company's fluctuating financial performance over the years. It is essential for investors and analysts to consider not only the current interest coverage ratio but also the historical trends to assess the company's overall financial health and ability to meet its debt obligations.
Peer comparison
Dec 31, 2023