SkyWest Inc (SKYW)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 7,139,870 | 7,026,290 | 7,414,550 | 7,125,950 | 6,887,620 |
| Total stockholders’ equity | US$ in thousands | 2,408,780 | 2,113,500 | 2,347,630 | 2,267,510 | 2,139,540 |
| Financial leverage ratio | 2.96 | 3.32 | 3.16 | 3.14 | 3.22 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $7,139,870K ÷ $2,408,780K
= 2.96
The financial leverage ratio measures the extent to which a company relies on debt to finance its operations, and it reflects the proportion of a company's assets that are funded by debt.
Based on the data provided, SkyWest Inc's financial leverage ratio has shown some fluctuations over the past five years. In December 2020, the ratio was 3.22, indicating that the company had $3.22 in debt for every $1 of equity. By December 2021, the ratio had decreased to 3.14, suggesting a slight reduction in reliance on debt for financing.
In the following years, the financial leverage ratio continued to fluctuate, reaching its peak at 3.32 in December 2023 before decreasing to 2.96 by December 2024. These fluctuations indicate changes in the company's debt levels relative to its equity over the years.
Overall, SkyWest Inc's financial leverage ratio has shown some variability, with the company's reliance on debt for funding fluctuating over the years. This trend suggests that the company has been managing its debt levels and evaluating its capital structure to balance financial risk and operational needs.
Peer comparison
Dec 31, 2024