Skyline Corporation (SKY)
Interest coverage
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 198,445 | 537,172 | 333,674 | 115,213 | 89,686 |
| Interest expense | US$ in thousands | 4,613 | 3,276 | 3,245 | 3,813 | 4,632 |
| Interest coverage | 43.02 | 163.97 | 102.83 | 30.22 | 19.36 |
March 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $198,445K ÷ $4,613K
= 43.02
The interest coverage ratio of Skyline Corporation has shown a significant upward trend over the past five years, reflecting the company's improving ability to cover its interest expenses with its operating income.
As of March 31, 2020, the interest coverage ratio was 19.36, indicating that the company generated 19.36 times more operating income than the interest expenses incurred during that period. This ratio increased to 30.22 by March 31, 2021, and further surged to 102.83 by March 31, 2022, demonstrating a substantial enhancement in the company's ability to meet its interest obligations using its operating earnings.
In the subsequent years, the interest coverage ratio continued to rise, reaching 163.97 by March 31, 2023, showcasing a robust financial position and a significant improvement in the company's capacity to handle its interest payments comfortably. However, by March 31, 2024, the ratio dropped to 43.02, indicating a slight decline from the previous year but still maintaining a healthy level of interest coverage.
Overall, the trend in Skyline Corporation's interest coverage ratio reflects a positive financial performance and a strengthening ability to service its debt obligations with its operating income, providing a favorable indication of the company's financial health and stability.
Peer comparison
Mar 31, 2024