Skyline Corporation (SKY)
Financial leverage ratio
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,923,340 | 1,562,720 | 1,234,620 | 917,902 | 781,700 |
| Total stockholders’ equity | US$ in thousands | 1,422,370 | 1,233,000 | 825,113 | 568,611 | 474,315 |
| Financial leverage ratio | 1.35 | 1.27 | 1.50 | 1.61 | 1.65 |
March 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,923,340K ÷ $1,422,370K
= 1.35
The financial leverage ratio for Skyline Corporation has exhibited a downward trend over the past five years, declining from 1.65 as of March 31, 2020, to 1.35 as of March 31, 2024. This decrease indicates that the company's reliance on debt to finance its operations has been reducing over time. A decreasing financial leverage ratio can be considered a positive sign as it suggests that the company is becoming less leveraged and potentially less risky. However, it is essential to further analyze the reasons behind this trend to determine if it is a result of strategic deleveraging or other factors impacting the company's capital structure.
Peer comparison
Mar 31, 2024