SkyWest Inc (SKYW)

Debt-to-capital ratio

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Long-term debt US$ in thousands 2,136,790 2,562,180 2,941,770 2,717,420 2,801,540
Total stockholders’ equity US$ in thousands 2,408,780 2,113,500 2,347,630 2,267,510 2,139,540
Debt-to-capital ratio 0.47 0.55 0.56 0.55 0.57

December 31, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $2,136,790K ÷ ($2,136,790K + $2,408,780K)
= 0.47

SkyWest Inc's debt-to-capital ratio has shown a fluctuating trend over the past five years. As of December 31, 2020, the ratio stood at 0.57, indicating that 57% of the company's capital structure was funded by debt. Over the following years, there were slight variations in the ratio, with values of 0.55 in 2021, 0.56 in 2022, and 0.55 in 2023, suggesting relative stability in the company's debt and capital mix.

However, there was a notable decrease in the debt-to-capital ratio to 0.47 as of December 31, 2024, implying that the proportion of debt in SkyWest Inc's capital structure decreased compared to previous years. This reduction may signal a positive development, as lower debt ratios generally indicate lower financial risk and better financial health for the company. Overall, monitoring the trend of the debt-to-capital ratio is essential for assessing SkyWest Inc's leverage and financial risk profile.