SkyWest Inc (SKYW)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 7,026,290 | 7,414,550 | 7,125,950 | 6,887,620 | 6,657,130 |
| Total stockholders’ equity | US$ in thousands | 2,113,500 | 2,347,630 | 2,267,510 | 2,139,540 | 2,175,010 |
| Financial leverage ratio | 3.32 | 3.16 | 3.14 | 3.22 | 3.06 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $7,026,290K ÷ $2,113,500K
= 3.32
Skywest Inc.'s financial leverage ratio has shown a fluctuating trend over the past five years. The ratio increased from 3.06 in 2019 to 3.22 in 2020, suggesting a higher level of financial leverage in the company's capital structure. Subsequently, the ratio decreased to 3.14 in 2021 but rose again to 3.16 in 2022.
By the end of 2023, the financial leverage ratio further increased to 3.32, indicating a significant rise in the company's reliance on debt financing compared to its equity. This trend signifies that Skywest Inc. has been increasing its debt levels relative to equity over the specified period.
Overall, the upward trend in the financial leverage ratio implies that the company has been financing a larger portion of its assets through debt, which could potentially increase the financial risk and interest obligations for Skywest Inc. This analysis suggests that further scrutiny of the company's debt management strategies and financial health may be warranted to assess the sustainability of its leverage levels.
Peer comparison
Dec 31, 2023