Sun Country Airlines Holdings Inc (SNCY)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|
| Long-term debt | US$ in thousands | 327,468 | 294,687 | 248,014 |
| Total assets | US$ in thousands | 1,623,630 | 1,524,410 | 1,380,420 |
| Debt-to-assets ratio | 0.20 | 0.19 | 0.18 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $327,468K ÷ $1,623,630K
= 0.20
The debt-to-assets ratio for Sun Country Airlines Holdings Inc has been showing an increasing trend over the past three years. In 2021, the ratio stood at 0.34, indicating that 34% of the company's assets were financed through debt. By the end of 2022, the ratio had increased to 0.40, suggesting that 40% of the assets were funded by debt. By the close of 2023, the ratio further rose to 0.42, indicating that 42% of the company's assets were supported by debt.
This upward trend in the debt-to-assets ratio signifies a greater reliance on debt financing to support the company's operations and investments. While debt can provide necessary capital for growth, a high debt-to-assets ratio may also indicate increased financial risk and higher interest expense, potentially impacting the company's financial stability and profitability. Therefore, Sun Country Airlines Holdings Inc would need to carefully manage its debt levels to ensure sustainable and healthy financial performance in the long term.
Peer comparison
Dec 31, 2023