Skechers USA Inc (SKX)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.79 | 1.88 | 1.93 | 1.99 | 2.34 |
Skechers USA Inc has consistently maintained a strong position in terms of solvency ratios. The debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio have all remained at 0.00 from December 31, 2020, to December 31, 2024. This indicates that the company has not taken on any debt relative to its total assets, capital, or equity during this period.
Furthermore, the financial leverage ratio has shown a decreasing trend from 2.34 on December 31, 2020, to 1.79 on December 31, 2024. This declining trend suggests that the company has been reducing its reliance on debt financing in favor of equity financing, which can be seen as a positive sign for investors and creditors.
Overall, these solvency ratios reflect Skechers USA Inc's sound financial position and ability to meet its financial obligations without excessive leverage, indicating stability and financial strength in the long term.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | — | 35.11 | 7.47 | 40.15 | 8.19 |
Interest coverage ratio is a key financial metric that indicates a company's ability to meet its interest obligations on outstanding debt. It is calculated by dividing earnings before interest and taxes (EBIT) by the interest expense.
Based on the data provided for Skechers USA Inc, the interest coverage ratio has fluctuated over the years. In December 31, 2020, the interest coverage ratio was 8.19, indicating that the company generated 8.19 times more earnings than the interest expense, which suggests a moderate level of ability to cover interest payments.
In December 31, 2021, the interest coverage ratio improved significantly to 40.15, showing a substantial increase in the company's ability to cover interest expenses. This substantial increase indicates stronger profitability or lower interest expenses compared to the previous year.
However, in December 31, 2022, the interest coverage ratio decreased to 7.47, signaling a decline in the company's ability to cover its interest payments. This drop may raise concerns about the company's ability to comfortably meet its interest obligations.
In December 31, 2023, the interest coverage ratio increased to 35.11, indicating a significant improvement in the company's ability to cover interest payments. This improvement reflects positively on the company's financial health.
The data for December 31, 2024, shows an em dash, which may indicate missing or unavailable data for that period. Without the specific interest coverage ratio for this year, it is challenging to provide a complete analysis of the trend.
Overall, monitoring the interest coverage ratio over time can provide insights into Skechers USA Inc's financial stability and ability to manage its debt obligations effectively. The fluctuation in the interest coverage ratio underscores the importance of analyzing both profitability and debt-related metrics to assess the company's financial health.