Sun Country Airlines Holdings Inc (SNCY)

Debt-to-equity ratio

		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
Long-term debt	US$ in thousands	327,468	351,766	365,211	346,065	294,687	324,662	319,733	242,544	248,014	266,985	267,684	274,109
Total stockholders’ equity	US$ in thousands	514,403	519,361	540,765	521,007	492,712	508,005	495,888	497,069	490,589	487,142	469,019	414,322
Debt-to-equity ratio		0.64	0.68	0.68	0.66	0.60	0.64	0.64	0.49	0.51	0.55	0.57	0.66

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 shown a general upward trend over the past eight quarters, starting at 1.11 in Q1 2022 and reaching 1.34 in Q3 2023. This indicates an increasing proportion of debt relative to equity in the company's capital structure.

The ratio surpassed the threshold of 1.0 in Q2 2022, suggesting that the company is relying more on debt financing than equity financing. This trend continued through the subsequent quarters, with Q3 2023 recording the highest ratio of 1.34.

While a higher debt-to-equity ratio can be a sign of financial leverage and potentially higher returns for shareholders, it also indicates higher financial risk due to the increased debt burden. It would be prudent for investors and stakeholders to closely monitor the company's ability to manage its debt levels and meet its financial obligations as the ratio continues to climb.