Boston Beer Company Inc (SAM)
Interest coverage
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 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 | 144,913 | 156,062 | 142,954 | 136,086 |
| Interest expense (ttm) | US$ in thousands | 1,644 | 3,330 | 4,089 | 4,172 | 2,561 | 901 | 168 | 114 | 110 | 114 | 108 | 291 | 325 | 470 | 588 | 403 | 977 | 1,273 | 1,478 | 1,724 |
| Interest coverage | 60.83 | 32.77 | 21.03 | 18.94 | 35.45 | 38.47 | -473.06 | -620.65 | 72.71 | 1,079.43 | 2,783.42 | 1,028.43 | 751.41 | 467.63 | 302.45 | 339.96 | 148.32 | 122.59 | 96.72 | 78.94 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $100,001K ÷ $1,644K
= 60.83
The interest coverage ratio measures a company's ability to meet its interest payments on debt with its operating income. A higher ratio indicates a stronger ability to cover interest expenses.
Analyzing the interest coverage for Boston Beer Company Inc over the past few quarters shows significant fluctuations. In the latest quarter, the interest coverage ratio was 60.83, indicating a strong ability to cover interest payments with operating income. This is a positive sign for the company's financial health.
Looking further back, the interest coverage ratios for the previous quarters show varying levels of performance. There was a notable decline in the interest coverage ratio in the second and third quarters of 2022, with negative ratios recorded. This suggests that the company may have faced challenges in meeting its interest obligations during that period.
Overall, the recent improvement in the interest coverage ratio reflects a positive trend for Boston Beer Company Inc. However, it is important to closely monitor future financial results to ensure the company maintains a healthy ability to cover its interest expenses.
Peer comparison
Dec 31, 2023