Skyline Corporation (SKY)
Solvency ratios
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.01 | 0.01 | 0.01 | 0.04 | 0.10 |
| Debt-to-capital ratio | 0.02 | 0.01 | 0.01 | 0.06 | 0.14 |
| Debt-to-equity ratio | 0.02 | 0.01 | 0.02 | 0.07 | 0.16 |
| Financial leverage ratio | 1.35 | 1.27 | 1.50 | 1.61 | 1.65 |
Skyline Corporation's solvency ratios show a consistently positive trend over the past five years. The Debt-to-assets ratio has decreased from 0.10 in 2020 to 0.01 in 2024, indicating a decreasing reliance on debt to finance the company's assets. Similarly, the Debt-to-capital ratio has also decreased from 0.14 in 2020 to 0.02 in 2024, reflecting a lower proportion of debt in the company's capital structure.
The Debt-to-equity ratio has shown a similar trend, declining from 0.16 in 2020 to 0.02 in 2024, signaling a stronger equity position compared to debt. Additionally, the Financial leverage ratio has declined from 1.65 in 2020 to 1.35 in 2024, indicating a decreasing financial risk and leverage within the company.
Overall, Skyline Corporation's solvency ratios demonstrate a strong financial position with a decreasing reliance on debt and improved equity base over the years, showcasing a positive trend in the company's solvency and financial stability.
Coverage ratios
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 43.02 | 163.97 | 102.83 | 30.22 | 19.36 |
The interest coverage ratio for Skyline Corporation has shown a positive trend over the past years, reflecting the company's ability to meet its interest obligations from its operating income. In March 31, 2020, the interest coverage ratio stood at 19.36, indicating that the company generated 19.36 times more operating income than needed to cover its interest expenses. This ratio improved significantly to 30.22 in March 31, 2021, and further increased to 102.83 in March 31, 2022, demonstrating a strong financial position.
Moreover, in March 31, 2023, Skyline Corporation's interest coverage ratio rose substantially to 163.97, indicating a significant enhancement in the company's ability to cover its interest payments comfortably. However, in March 31, 2024, the interest coverage ratio dropped to 43.02, which, while still healthy, suggests a slight decrease in the company's ability to cover its interest obligations compared to the previous year.
Overall, the trend in Skyline Corporation's interest coverage ratio demonstrates a consistent ability to meet its interest payments, with occasional fluctuations that should be monitored to ensure the company's financial health remains strong.