Skechers USA Inc (SKX)

Skechers U S A, Inc.'s solvency ratios provide insights into the company's ability to meet its long-term financial obligations and the extent of its reliance on debt financing. Looking at the trend over the past five years:
- The debt-to-assets ratio has been relatively low and stable, indicating that only a small portion of the company's assets is financed by debt. This suggests a conservative approach to leverage and a strong ability to cover debt obligations with asset backing.
- The debt-to-capital ratio has also shown a decreasing trend, indicating that the proportion of capital financed by debt has decreased over the years. This signals a decreasing reliance on debt for funding capital expenditures and operations.
- The debt-to-equity ratio has followed a similar trend to the debt-to-capital ratio, showing a decreasing pattern. This suggests that the company has been reducing its leverage and improving its financial stability by relying more on equity financing compared to debt.
- The financial leverage ratio, which measures the proportion of assets financed by equity relative to debt, has shown a decreasing trend. This indicates that Skechers' equity funding has been increasing compared to debt financing, which is a positive indicator of financial health and lower financial risk.

Overall, based on these solvency ratios, Skechers U S A, Inc. appears to have a healthy balance sheet with a conservative approach to debt. The trend of decreasing ratios over the five-year period suggests an improving financial position and increasing financial stability.

---

Coverage ratios

The interest coverage ratio for Skechers U S A, Inc. could not be calculated for the years 2020 and 2019 due to missing data on interest expenses. However, for the year 2020, the interest coverage ratio was reported at 12.84, indicating that the company earned 12.84 times the amount needed to cover its interest expenses. This suggests that Skechers U S A, Inc. had a strong ability to meet its interest payments from its operating income in 2020.

Unfortunately, the lack of information for the other years limits a more comprehensive trend analysis of Skechers U S A, Inc.'s interest coverage over the years prior to 2020.