Sun Country Airlines Holdings Inc (SNCY)

Debt-to-equity 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-equity ratio		0.64	0.60	0.51

December 31, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $327,468K ÷ $514,403K
= 0.64

The debt-to-equity ratio of Sun Country Airlines Holdings Inc has been trending upwards over the past three years, indicating an increasing level of financial leverage. In 2021, the ratio was 0.96, suggesting that the company had a higher proportion of equity relative to debt. However, by the end of 2023, the ratio had risen to 1.32, indicating that the company's financial structure was increasingly reliant on debt financing.

A higher debt-to-equity ratio can indicate higher financial risk for the company, as it suggests a greater reliance on borrowed funds to finance its operations and investments. Investors and creditors typically monitor this ratio closely, as a high ratio could signal potential difficulties in meeting debt obligations, especially in economic downturns or adverse business conditions.

Overall, the rising trend in Sun Country Airlines Holdings Inc's debt-to-equity ratio suggests a shift towards a more leveraged financial structure, which could potentially increase the company's financial risk and affect its ability to weather challenges in the future.