SkyWest Inc (SKYW)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.30 | 0.32 | 0.33 | 0.34 | 0.36 | 0.37 | 0.39 | 0.39 | 0.40 | 0.40 | 0.39 | 0.39 | 0.38 | 0.38 | 0.38 | 0.40 | 0.41 | 0.40 | 0.39 | 0.38 |
| Debt-to-capital ratio | 0.47 | 0.49 | 0.51 | 0.52 | 0.55 | 0.55 | 0.56 | 0.56 | 0.56 | 0.55 | 0.55 | 0.55 | 0.55 | 0.54 | 0.54 | 0.56 | 0.57 | 0.55 | 0.55 | 0.54 |
| Debt-to-equity ratio | 0.89 | 0.95 | 1.02 | 1.10 | 1.21 | 1.23 | 1.27 | 1.28 | 1.25 | 1.24 | 1.22 | 1.22 | 1.20 | 1.15 | 1.18 | 1.26 | 1.31 | 1.24 | 1.24 | 1.17 |
| Financial leverage ratio | 2.96 | 3.01 | 3.12 | 3.23 | 3.32 | 3.30 | 3.30 | 3.24 | 3.16 | 3.11 | 3.13 | 3.12 | 3.14 | 3.07 | 3.11 | 3.16 | 3.22 | 3.09 | 3.16 | 3.08 |
The solvency ratios of SkyWest Inc over the period from March 31, 2020, to December 31, 2024, provide insight into the company's ability to meet its financial obligations.
1. Debt-to-Assets Ratio: This ratio shows the proportion of the company's assets that are financed by debt. SkyWest Inc's debt-to-assets ratio has remained relatively stable around 0.38 to 0.41 during the period, indicating that a significant portion of its assets are funded by debt.
2. Debt-to-Capital Ratio: The debt-to-capital ratio reflects the percentage of the company's capital that comes from debt. SkyWest Inc's debt-to-capital ratio fluctuated between 0.47 and 0.57 during the period, suggesting a moderate reliance on debt financing to fund its operations and investments.
3. Debt-to-Equity Ratio: The debt-to-equity ratio measures the amount of leverage used by the company to finance its assets relative to shareholders' equity. SkyWest Inc's debt-to-equity ratio ranged from 0.89 to 1.31, showing a decreasing trend over time. This indicates a decreasing reliance on debt and improving financial stability.
4. Financial Leverage Ratio: The financial leverage ratio indicates the extent to which a company uses debt in its capital structure. SkyWest Inc's financial leverage ratio fluctuated between 2.96 and 3.32 during the period, reflecting the company's varying levels of leverage.
Overall, the solvency ratios suggest that SkyWest Inc has managed its debt levels prudently over the period, with a relatively stable debt-to-assets ratio and decreasing debt-to-equity ratio. However, the fluctuations in the debt-to-capital ratio and financial leverage ratio indicate some variability in the company's capital structure and leverage levels. Further analysis of the company's overall financial health and performance would be necessary to provide a more comprehensive assessment.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
SkyWest Inc's interest coverage ratio has fluctuated over the past few years. The ratio was relatively stable around 2 to 3 from March 2020 to June 2021, indicating that the company generated enough operating income to cover its interest expenses. However, there was a significant drop in the ratio to 0.88 in December 2020, suggesting a potential strain on the company's ability to meet its interest obligations.
Subsequently, the interest coverage ratio continued to be below 2 for the next few quarters, indicating a persistent issue with covering interest expenses. From March 2023 to September 2023, the ratio fell significantly, reaching a low point of 0.31 in September 2023, which may raise concerns about the company's financial health and ability to service its debt.
There was a slight improvement in the interest coverage ratio in the following quarters, with the ratio rising above 1.5 from March 2024 to December 2024. This improvement suggests that SkyWest Inc may have enhanced its ability to cover its interest payments during this period.
Overall, the fluctuating trend in SkyWest Inc's interest coverage ratio highlights the importance of monitoring the company's ability to generate sufficient operating income to meet its interest obligations and sustain its debt payments.