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Boston Beer

Autor:   •  September 22, 2015  •  Case Study  •  1,213 Words (5 Pages)  •  879 Views

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Boston Beer- Common Size Income Statement

 

2013

2012

2011

2010

2009

Revenue

100.00%

100.00%

100.00%

100.00%

100.00%

Cost of Goods Sold

47.92%

45.67%

44.53%

41.01%

44.38%

Gross Profit

52.08%

54.33%

55.47%

58.99%

55.62%

Operating Expenses

36.78%

37.85%

35.27%

34.62%

35.19%

Operating Income

15.30%

16.47%

20.21%

24.36%

20.44%

 

 

 

 

 

 

Income Before Taxes

15.23

16.46%

20.18%

16.03%

11.99%

 

 

 

 

 

 

Net Income

9.52%

10.25%

12.88%

9.91%

6.86%

B. Common Sized Analysis of Major Income Statement Accounts

The figure above shows the major accounts of the Common Size Income Statement of Boston Beer. Not only is it vital to look at a company’s Income Statement in dollar form, it is important to analyze it in percentage form. For instance, taking a look at the Net Income on a normal Income Statement, one would see a year-to-year increase of $39 million from 2009 to 2013 (Income Statement, n.d.). Now looking at the Common Size Statement, it shows that even though, monetarily, there has been a steady increase, percentage wise, from 2011 to 2013 there has been a decrease in net income in relation to the percentage of revenue.

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