Skechers USA Inc (SKX)
Financial leverage ratio
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 7,547,350 | 7,239,260 | 7,107,660 | 7,044,470 | 6,893,490 | 6,678,640 | 6,676,600 | 6,545,110 | 6,491,280 | 5,901,580 | 5,764,730 | 5,985,570 | 5,812,370 | 5,711,390 | 5,408,050 | 5,395,020 | 4,892,940 | 4,566,200 | 4,421,240 | 4,127,410 |
| Total stockholders’ equity | US$ in thousands | 4,019,340 | 3,952,130 | 3,839,350 | 3,714,850 | 3,569,990 | 3,458,700 | 3,416,260 | 3,367,820 | 3,259,340 | 2,841,500 | 2,733,460 | 2,576,130 | 2,481,440 | 2,402,400 | 2,224,720 | 2,347,720 | 2,314,660 | 2,174,500 | 2,132,910 | 2,062,530 |
| Financial leverage ratio | 1.88 | 1.83 | 1.85 | 1.90 | 1.93 | 1.93 | 1.95 | 1.94 | 1.99 | 2.08 | 2.11 | 2.32 | 2.34 | 2.38 | 2.43 | 2.30 | 2.11 | 2.10 | 2.07 | 2.00 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $7,547,350K ÷ $4,019,340K
= 1.88
The financial leverage ratio of Skechers U S A, Inc. has been relatively stable over the past eight quarters, ranging between 1.83 and 1.95. This indicates that the company has been utilizing a moderate level of financial leverage to support its operations and growth.
A financial leverage ratio above 1 suggests that the company relies on debt to finance its assets, with a higher ratio indicating a greater reliance on debt. In the case of Skechers, the ratios consistently above 1.8 suggest a significant presence of debt in its capital structure.
It is important to note that while leverage can amplify returns, it also increases financial risk, as the company must meet interest and principal payments. Investors and creditors should closely monitor changes in the financial leverage ratio to assess the company's ability to manage its debt obligations and sustain profitability.
Peer comparison
Dec 31, 2023