Skechers USA Inc (SKX)
Debt-to-equity 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 stockholders’ equity | US$ in thousands | 4,019,340 | 3,569,990 | 3,259,340 | 2,481,440 | 2,314,660 |
| Debt-to-equity ratio | 0.06 | 0.06 | 0.08 | 0.27 | 0.02 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $242,944K ÷ $4,019,340K
= 0.06
The debt-to-equity ratio of Skechers U S A, Inc. has fluctuated over the past five years, indicating varying levels of leverage during this period. In 2019, the company had a low debt-to-equity ratio of 0.05, suggesting a conservative capital structure with a higher reliance on equity financing compared to debt. However, in 2020, there was a notable increase in the ratio to 0.30, indicating a significant rise in debt relative to equity, implying a more leveraged position that year.
Subsequently, in 2021 and 2022, Skechers maintained a relatively stable debt-to-equity ratio of 0.10, signaling a balanced mix of debt and equity in its capital structure during those years. This consistency could suggest a deliberate effort by management to maintain a certain level of leverage.
In the most recent year, 2023, the company's debt-to-equity ratio decreased to 0.07, indicating a reduction in debt relative to equity compared to the previous year. This decline could imply a shift towards a more conservative financing approach or successful debt repayment strategies by Skechers U S A, Inc.
Overall, the trend in Skechers U S A, Inc.'s debt-to-equity ratio reflects fluctuations in the company's capital structure and leverage levels over the past five years, with varying degrees of reliance on debt financing. It is essential for stakeholders to monitor these ratios to assess the company's financial risk and sustainability over time.
Peer comparison
Dec 31, 2023