Sun Country Airlines Holdings Inc (SNCY)

Debt-to-capital ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021
Long-term debt	US$ in thousands	327,468	294,687	248,014
Total stockholders’ equity	US$ in thousands	514,403	492,712	490,589
Debt-to-capital ratio		0.39	0.37	0.34

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $327,468K ÷ ($327,468K + $514,403K)
= 0.39

The debt-to-capital ratio of Sun Country Airlines Holdings Inc has shown an increasing trend over the past three years. The ratio increased from 0.49 in 2021 to 0.55 in 2022, and further to 0.57 in 2023. This indicates that the company has been relying more on debt to finance its operations and investments compared to its own capital.

A higher debt-to-capital ratio suggests that the company has a higher proportion of debt in its capital structure, which can increase financial risk due to interest payments and potential default. It also signifies that the company may have lower financial flexibility and may be more vulnerable to economic downturns or adverse market conditions.

Sun Country Airlines Holdings Inc should carefully manage its debt levels and continuously monitor its capital structure to ensure it remains sustainable and in line with its overall financial objectives. Investors and creditors may closely scrutinize this ratio to assess the company's leverage and overall financial health.