Sun Country Airlines Holdings Inc (SNCY)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|
| Debt-to-assets ratio | 0.20 | 0.19 | 0.18 |
| Debt-to-capital ratio | 0.39 | 0.37 | 0.34 |
| Debt-to-equity ratio | 0.64 | 0.60 | 0.51 |
| Financial leverage ratio | 3.16 | 3.09 | 2.81 |
Sun Country Airlines Holdings Inc's solvency ratios have shown some fluctuations over the past three years. The debt-to-assets ratio has increased from 0.34 in 2021 to 0.42 in 2023, indicating that a larger proportion of the company's assets are financed by debt. Similarly, the debt-to-capital ratio has also risen from 0.49 in 2021 to 0.57 in 2023, reflecting an increased reliance on debt for funding the company's operations.
The debt-to-equity ratio has experienced a notable increase from 0.96 in 2021 to 1.32 in 2023, suggesting that the company's debt levels have grown at a faster pace than its equity. This higher ratio indicates a higher financial risk for the company as it indicates higher leverage.
Furthermore, the financial leverage ratio has also shown an upward trend, increasing from 2.83 in 2021 to 3.16 in 2023. This ratio signifies the extent to which the company is using debt to finance its assets, with a higher ratio indicating higher financial risk and dependency on debt financing.
Overall, the increasing trend in these solvency ratios suggests that Sun Country Airlines Holdings Inc's financial risk has been on the rise over the past three years, indicating a need for careful management of its debt levels to ensure sustainable financial health.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|
| Interest coverage | 3.21 | 1.77 | 4.81 |
The interest coverage ratio for Sun Country Airlines Holdings Inc has shown a positive trend over the past three years, indicating the company's improving ability to cover its interest expenses. In particular, the ratio has increased from 1.58 in 2021 to 3.93 in 2023. This suggests that the company's operating income is sufficient to cover its interest expenses nearly four times over in 2023, reflecting a stronger financial position and lower financial risk. This improvement may be attributed to better operational performance, cost management, or refinancing of debt at lower interest rates. Overall, the rising trend in interest coverage ratio is a positive sign for the company's financial health and ability to meet its debt obligations.