Skechers USA Inc (SKX)
Solvency ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.98 | 1.98 | 1.89 | 1.83 | 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 |
Skechers USA Inc has consistently maintained a strong solvency position, with a debt-to-assets ratio of 0.00 for all periods reported. This indicates that the company has no debt relative to its total assets, suggesting a low financial risk.
Similarly, the debt-to-capital ratio and debt-to-equity ratio have also been at 0.00 throughout the periods, reinforcing Skechers USA Inc's minimal reliance on debt financing in relation to its capital structure. This implies a healthy balance between debt and equity in funding the company's operations.
The financial leverage ratio, which measures the extent of a company's financial leverage, has shown a declining trend from 2.30 in March 2020 to 1.98 in December 2024. This reduction indicates that Skechers USA Inc has become less reliant on debt over time to generate earnings and fund investments.
Overall, the solvency ratios demonstrate Skechers USA Inc's sound financial health, characterized by a conservative debt strategy and a well-managed capital structure. This solid solvency position may provide the company with stability and flexibility to navigate economic challenges and pursue growth opportunities in the future.
Coverage ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | — | 155.19 | 75.12 | 49.71 | 21.09 | 10.10 | 7.95 | 7.69 | 7.47 | 10.72 | 14.29 | 14.41 | 19.26 | 35.67 | 29.80 | 13.69 | 8.56 | 12.81 | 20.81 | 48.28 |
The interest coverage ratio is a measure of a company's ability to meet its interest obligations with its operating income. A higher interest coverage ratio indicates that the company is more capable of servicing its debt.
Analyzing the interest coverage ratios of Skechers USA Inc over the reported periods reveals some fluctuations. As of March 31, 2020, the company had a strong interest coverage ratio of 48.28, indicating a comfortable ability to cover its interest payments. Over the following quarters, the ratio declined but remained above 10, reflecting a generally healthy financial position.
However, by the end of December 31, 2022, the interest coverage ratio fell significantly to 7.47, suggesting a potential strain on the company's ability to cover its interest expenses. The ratio continued to hover around this level through March 31, 2024.
The sudden improvement in the interest coverage ratio to 49.71 as of March 31, 2024, followed by a substantial increase to 155.19 by September 30, 2024, indicates a significant improvement in the company's ability to cover its interest obligations. This sharp rebound could be attributed to various factors such as improved profitability, cost-cutting measures, or refinancing of debt at lower interest rates.
The absence of data for December 31, 2024, prevents a complete assessment of the trend. However, the recent trend towards higher interest coverage ratios suggests a positive momentum for Skechers USA Inc in terms of managing its debt obligations effectively. Nonetheless, it is essential for investors and analysts to monitor the company's interest coverage ratio over time to assess its financial health and debt service capacity accurately.