Skyline Corporation (SKY)
Interest coverage
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | — | 175,205 | 518,285 | 332,905 | 108,759 |
| Interest expense | US$ in thousands | 8,468 | 4,613 | 3,276 | 2,512 | 3,248 |
| Interest coverage | 0.00 | 37.98 | 158.21 | 132.53 | 33.48 |
March 31, 2025 calculation
Interest coverage = EBIT ÷ Interest expense
= $—K ÷ $8,468K
= 0.00
The interest coverage ratio indicates the company's ability to meet its interest obligations on its outstanding debt. A higher ratio suggests that Skyline Corporation is more capable of servicing its debt with its operating income.
Analyzing the data provided, Skyline Corporation's interest coverage has fluctuated over the years. As of March 31, 2021, the interest coverage ratio was 33.48, indicating that the company's operating income was sufficient to cover its interest expenses approximately 33 times over. This suggests a healthy financial position.
The ratio significantly improved to 132.53 as of March 31, 2022, and further increased to 158.21 by March 31, 2023. These higher ratios indicate a substantial increase in Skyline Corporation's ability to cover its interest expenses, reflecting a more robust financial position and potentially lower financial risk.
However, there was a notable decline in the interest coverage ratio to 37.98 by March 31, 2024, which may suggest that Skyline Corporation's ability to cover its interest payments declined during that period. It is essential for the company to closely monitor this trend to ensure its financial health.
Finally, the data shows an interest coverage ratio of 0.00 as of March 31, 2025, which indicates the company's operating income was insufficient to cover its interest expenses. This could potentially raise concerns about Skyline Corporation's financial stability and ability to meet its debt obligations.
In conclusion, while Skyline Corporation demonstrated strong interest coverage ratios in some years, the fluctuations over time highlight the importance of continuous monitoring and proactive management of the company's financial health to maintain a stable position in the face of changing economic conditions.
Peer comparison
Mar 31, 2025