Skyline Corporation (SKY)
Debt-to-equity 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-equity ratio | 0.02 | 0.01 | 0.02 | 0.07 | 0.16 |
March 31, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $24,669K ÷ $1,422,370K
= 0.02
The debt-to-equity ratio of Skyline Corporation has shown a decreasing trend over the past five years. It was 0.16 as of March 31, 2020, indicating that the company had $0.16 of debt for every $1 of equity.
However, by March 31, 2024, the debt-to-equity ratio had decreased significantly to 0.02, suggesting improved financial leverage and a stronger equity base relative to debt. This downward trend may signify that Skyline Corporation has been reducing its reliance on debt financing and strengthening its financial position.
A lower debt-to-equity ratio is generally seen as a positive indicator, as it indicates lower financial risk and greater solvency. Overall, the decreasing trend in Skyline Corporation's debt-to-equity ratio suggests improved financial health and a more stable capital structure over the analyzed period.
Peer comparison
Mar 31, 2024