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