Skechers USA Inc (SKX)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 242,944 | 216,488 | 263,445 | 679,415 | 49,183 |
| Total assets | US$ in thousands | 7,547,350 | 6,893,490 | 6,491,280 | 5,812,370 | 4,892,940 |
| Debt-to-assets ratio | 0.03 | 0.03 | 0.04 | 0.12 | 0.01 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $242,944K ÷ $7,547,350K
= 0.03
The debt-to-assets ratio of Skechers U S A, Inc. has fluctuated over the past five years. In 2023, the ratio stands at 0.04, indicating that the company's debt level in proportion to its total assets is relatively low. This suggests that Skechers U S A, Inc. relies less on debt financing to fund its operations and investments, which can be viewed positively by investors and creditors.
Comparing this to the trend over the previous years, there was a slight decrease from the 0.05 ratio reported in 2022 and 2021. This reduction in the debt-to-assets ratio may signify that the company has been effectively managing its debt levels and/or increasing its asset base.
However, looking back to 2020 when the ratio spiked to 0.13, it indicates a significant increase in debt relative to assets that year. This could have resulted from various factors such as increased borrowing, a decrease in asset value, or a combination of both, potentially reflecting a period of financial strain or strategic decisions.
In 2019, the ratio was at its lowest point of 0.02, indicating an even stronger position in terms of debt-to-assets ratio than in 2023. This could suggest that the company had minimal debt relative to its asset base, which is generally viewed favorably as it implies lower financial risk.
Overall, the trend in Skechers U S A, Inc.'s debt-to-assets ratio highlights the importance of monitoring changes in the company's capital structure and financial leverage over time to assess its financial health and risk profile effectively.
Peer comparison
Dec 31, 2023