Boston Beer Company Inc (SAM)

Interest coverage

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Earnings before interest and tax (EBIT) (ttm) US$ in thousands 75,973 106,075 121,744 129,299 100,001 109,122 85,986 79,001 90,791 34,665 -79,474 -70,754 7,998 123,055 300,609 299,273 244,207 219,784 177,839 137,002
Interest expense (ttm) US$ in thousands 0 0 0 0 1,644 3,330 4,089 4,172 2,561 901 168 114 110 104 98 281 315 470 588 403
Interest coverage 60.83 32.77 21.03 18.94 35.45 38.47 -473.06 -620.65 72.71 1,183.22 3,067.44 1,065.03 775.26 467.63 302.45 339.96

December 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $75,973K ÷ $0K
= —

The interest coverage ratio for Boston Beer Company Inc has shown significant fluctuations over the period from March 31, 2020, to December 31, 2024.

The interest coverage ratio measures the company's ability to meet its interest obligations on outstanding debt with its operating income. A higher ratio indicates a stronger ability to cover interest payments comfortably.

From March 31, 2020, through June 30, 2021, the interest coverage ratio for Boston Beer Company Inc consistently improved, reaching a peak of 3,067.44 on June 30, 2021, reflecting a robust ability to cover interest expenses several times over.

However, starting from September 30, 2021, the interest coverage ratio began to decline sharply. By December 31, 2021, the ratio dropped to 72.71, indicating a potential strain in meeting interest payments.

The following quarters, specifically March 31, 2022, and June 30, 2022, showed negative interest coverage ratios, suggesting that the company's operating income was not sufficient to cover its interest expenses during these periods.

Subsequently, there was a modest improvement in the interest coverage ratio from September 30, 2022, to December 31, 2023. The ratios for these quarters ranged from 18.94 to 60.83, indicating a partial recovery in the company's ability to cover interest payments.

The data for the periods beyond December 31, 2023, is not available in the provided information where the value is represented as "—." Therefore, it is difficult to assess the trend in the interest coverage ratio for Boston Beer Company Inc beyond this point.

Overall, the analysis of the interest coverage ratio suggests fluctuations in the company's ability to cover interest payments, highlighting the importance of monitoring the company's financial health and capital structure.


Peer comparison

Dec 31, 2024

Company name
Symbol
Interest coverage
Boston Beer Company Inc
SAM
Molson Coors Brewing Co Class B
TAP
6.15