Skyline Corporation (SKY)
Debt-to-capital ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 24,696 | 24,690 | 24,684 | 24,669 | 24,663 | 12,430 | 12,430 | 12,430 | 12,430 | 12,430 | 12,430 | 12,430 | 12,430 | 12,430 | 39,330 | 39,330 | 39,330 | 77,330 | 77,330 | 77,330 |
| Total stockholders’ equity | US$ in thousands | 1,528,300 | 1,492,260 | 1,450,750 | 1,422,370 | 1,421,960 | 1,340,190 | 1,290,920 | 1,233,000 | 1,173,440 | 1,085,740 | 943,578 | 825,113 | 733,378 | 662,978 | 612,583 | 568,611 | 532,195 | 507,444 | 489,297 | 474,315 |
| Debt-to-capital ratio | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.02 | 0.02 | 0.06 | 0.06 | 0.07 | 0.13 | 0.14 | 0.14 |
December 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $24,696K ÷ ($24,696K + $1,528,300K)
= 0.02
The debt-to-capital ratio of Skyline Corporation has been steadily decreasing over the past few years, indicating a strong financial position in terms of leveraging debt to fund its operations relative to its total capital. As of December 31, 2024, the ratio stands at 0.02, which means that only 2% of the company's capital structure is financed by debt, while the remaining 98% is funded by equity. This signifies a conservative approach to capital structure management, reducing the company's financial risk and increasing its ability to weather economic downturns or unforeseen challenges.
The consistent decline in the debt-to-capital ratio from 0.14 in March 2020 to 0.02 in December 2024 suggests that Skyline Corporation has been steadily paying down its debt, improving its overall financial health and solvency. A lower debt-to-capital ratio is generally viewed favorably by investors and creditors, as it indicates a lower level of debt relative to the company's total capital, enhancing its ability to generate returns for shareholders and repay obligations in a timely manner.
Overall, the declining trend of the debt-to-capital ratio for Skyline Corporation reflects a prudent and disciplined approach to managing its capital structure, positioning the company well for long-term financial stability and growth. Investors and stakeholders may view this as a positive signal of the company's financial strength and sustainability in the market.
Peer comparison
Dec 31, 2024