Skyline Corporation (SKY)
Interest coverage
| Mar 31, 2025 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 215,510 | 229,593 | 195,041 | 175,675 | 171,856 | 226,545 | 282,310 | 420,466 | 518,285 | 565,510 | 554,841 | 432,774 | 333,228 | 263,876 | 200,105 | 156,110 | 116,158 | 84,983 | 81,378 | 83,242 |
| Interest expense (ttm) | US$ in thousands | 6,409 | 6,789 | 6,617 | 4,866 | 3,046 | 3,049 | 2,120 | 2,750 | 2,463 | 2,591 | 2,101 | 1,954 | 2,513 | 2,649 | 2,936 | 2,955 | 3,393 | 3,128 | 2,661 | 2,179 |
| Interest coverage | 33.63 | 33.82 | 29.48 | 36.10 | 56.42 | 74.30 | 133.17 | 152.90 | 210.43 | 218.26 | 264.08 | 221.48 | 132.60 | 99.61 | 68.16 | 52.83 | 34.23 | 27.17 | 30.58 | 38.20 |
March 31, 2025 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $215,510K ÷ $6,409K
= 33.63
Skyline Corporation's interest coverage ratio has exhibited significant fluctuations over the period from June 30, 2020, to March 31, 2025. The interest coverage ratio represents the company's ability to meet its interest obligations on outstanding debt.
Initially, the interest coverage ratio was strong, with a value of 38.20 as of June 30, 2020, indicating that the company's earnings before interest and taxes (EBIT) were more than sufficient to cover its interest expenses. However, the ratio started to decline in the following quarters, reaching a low of 27.17 by December 31, 2020.
Subsequently, there was a notable improvement in the interest coverage ratio, with values steadily increasing to 152.90 as of June 30, 2023. This upward trend continued until September 30, 2023, when the ratio peaked at 264.08, indicating a strong ability to cover interest payments.
However, from December 31, 2023, to March 31, 2025, the interest coverage ratio experienced a significant decline, falling to 33.63 by the end of the period. This downward trend may raise concerns about the company's ability to meet its interest obligations from its operating income.
Overall, the analysis of Skyline Corporation's interest coverage ratio suggests that while the company has demonstrated periods of robust ability to cover interest expenses, there have been fluctuations that warrant further examination to understand the underlying factors impacting the company's financial health and stability.
Peer comparison
Mar 31, 2025