Skyline Corporation (SKY)
Debt-to-capital ratio
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 24,669 | 12,430 | 12,430 | 39,330 | 77,330 |
| Total stockholders’ equity | US$ in thousands | 1,422,370 | 1,233,000 | 825,113 | 568,611 | 474,315 |
| Debt-to-capital ratio | 0.02 | 0.01 | 0.01 | 0.06 | 0.14 |
March 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $24,669K ÷ ($24,669K + $1,422,370K)
= 0.02
The debt-to-capital ratio of Skyline Corporation has shown a declining trend over the past five years, decreasing from 0.14 as of March 31, 2020, to 0.02 as of March 31, 2024. This indicates that the company has been reducing its reliance on debt in relation to its total capital structure. A lower debt-to-capital ratio typically suggests lower financial risk and greater financial stability for the company, as it indicates a smaller proportion of debt financing compared to equity. This trend may be viewed positively by investors and creditors, as it signifies improved financial health and potentially better debt management by Skyline Corporation over the years.
Peer comparison
Mar 31, 2024