SkyWest Inc (SKYW)

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	494,657	378,203	296,059	208,279	104,069	41,383	67,668	124,410	181,162	249,178	220,652	247,073	275,867	215,246	242,749	123,323	108,802	261,776	333,664	482,160
Interest expense (ttm)	US$ in thousands	114,340	117,652	122,387	127,139	130,930	134,656	135,396	132,111	127,083	121,156	116,853	120,360	123,122	126,167	127,337	124,323	123,173	122,151	123,607	125,451
Interest coverage		4.33	3.21	2.42	1.64	0.79	0.31	0.50	0.94	1.43	2.06	1.89	2.05	2.24	1.71	1.91	0.99	0.88	2.14	2.70	3.84

December 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $494,657K ÷ $114,340K
= 4.33

SkyWest Inc's interest coverage ratio has shown fluctuations over the past few years, indicating its ability to meet its interest obligations from its operating income. The ratio declined from 3.84 at March 31, 2020, to a low of 0.31 at September 30, 2023, which may raise concerns about the company's ability to cover its interest expenses adequately.

However, there was a subsequent improvement in the interest coverage ratio, reaching 4.33 by December 31, 2024, showcasing a recovery in the company's ability to cover its interest payments. Overall, it is important for investors and creditors to closely monitor SkyWest Inc's interest coverage ratio to assess its financial health and ability to meet its debt obligations.