Skyline Corporation (SKY)
Interest coverage
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 202,629 | 186,002 | 171,359 | 175,205 | 236,222 | 282,310 | 420,466 | 518,919 | 566,873 | 556,011 | 433,796 | 333,659 | 263,039 | 199,310 | 155,353 | 115,248 | 85,191 | 81,177 | 82,811 | 89,686 |
| Interest expense (ttm) | US$ in thousands | 4,638 | 4,638 | 4,637 | 4,613 | 3,265 | 3,263 | 3,255 | 3,276 | 1,509 | 1,926 | 2,686 | 3,245 | 3,214 | 3,501 | 3,520 | 3,813 | 6,214 | 5,747 | 5,265 | 4,632 |
| Interest coverage | 43.69 | 40.10 | 36.95 | 37.98 | 72.35 | 86.52 | 129.18 | 158.40 | 375.66 | 288.69 | 161.50 | 102.82 | 81.84 | 56.93 | 44.13 | 30.23 | 13.71 | 14.13 | 15.73 | 19.36 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $202,629K ÷ $4,638K
= 43.69
The interest coverage ratio of Skyline Corporation demonstrates the company's ability to cover its interest expenses with its operating income. The trend of the interest coverage ratio over the past few years shows fluctuations.
As of March 31, 2020, the interest coverage ratio was 19.36, indicating Skyline Corporation could cover its interest payments nearly 19 times with its operating income. The ratio gradually decreased over the following months, reaching a low of 13.71 on December 31, 2020.
However, starting from March 31, 2021, there was a significant improvement in the interest coverage ratio, which soared to 30.23 and further increased in subsequent periods. By June 30, 2022, the ratio had surged to 161.50, indicating a robust ability to meet interest payments from earnings.
A notable decline occurred in the interest coverage ratio throughout 2023, dropping to 72.35 by December 31, 2023. The ratio continued to decline in the first half of 2024, hitting a low of 36.95 by June 30, 2024.
Overall, while the interest coverage ratio of Skyline Corporation has shown fluctuations over the analyzed periods, it is essential to closely monitor the trend to ensure the company can consistently meet its interest obligations with its operating income.
Peer comparison
Dec 31, 2024