Sun Country Airlines Holdings Inc (SNCY)

Financial leverage 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
Total assets	US$ in thousands	1,623,630	1,601,070	1,634,620	1,581,730	1,524,410	1,521,440	1,506,740	1,419,590	1,380,420	1,342,310	1,309,960	1,244,200
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
Financial leverage ratio		3.16	3.08	3.02	3.04	3.09	2.99	3.04	2.86	2.81	2.76	2.79	3.00

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,623,630K ÷ $514,403K
= 3.16

The financial leverage ratio of Sun Country Airlines Holdings Inc has shown fluctuations over the past eight quarters. The ratio has ranged from a low of 2.88 in Q1 2022 to a high of 3.16 in Q4 2023.

Overall, the company's financial leverage ratio has been consistently above 3 in the most recent quarters, indicating that the company relies more on debt financing to fund its operations compared to its equity. This may suggest a higher level of financial risk for the company, as higher leverage can amplify the impact of economic downturns or adverse events on the company's financial stability.

It is also worth noting that there was a significant increase in the financial leverage ratio from Q3 2022 to Q4 2022, followed by some fluctuation in subsequent quarters. This could indicate changes in the company's capital structure and financing decisions during that period.

In conclusion, Sun Country Airlines Holdings Inc's financial leverage ratio reflects a consistent reliance on debt in its capital structure, and investors and analysts may want to closely monitor the company's leverage levels and debt management strategies to assess its financial health and risk profile.