Sun Country Airlines Holdings Inc (SNCY)
Solvency ratios
| 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 | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.20 | 0.22 | 0.22 | 0.22 | 0.19 | 0.21 | 0.21 | 0.17 | 0.18 | 0.20 | 0.20 | 0.22 |
| Debt-to-capital ratio | 0.39 | 0.40 | 0.40 | 0.40 | 0.37 | 0.39 | 0.39 | 0.33 | 0.34 | 0.35 | 0.36 | 0.40 |
| 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 |
| 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 |
Sun Country Airlines Holdings Inc's solvency ratios provide insights into the company's ability to meet its long-term financial obligations and manage its debt levels effectively.
The Debt-to-assets ratio has been relatively stable around 0.42 to 0.44 over the past eight quarters, indicating that between 42% to 44% of the company's assets are funded by debt. This suggests a moderate level of leverage, with a significant portion of assets financed through debt.
The Debt-to-capital ratio has also been consistent, ranging from 0.55 to 0.57, reflecting that the company relies on debt for around 55% to 57% of its capital structure. This indicates a balance between debt and equity in financing the company's operations.
The Debt-to-equity ratio has shown an increasing trend from 1.11 to 1.34 over the past two years, implying that the company's reliance on debt to fund its operations has been growing compared to equity. This may raise concerns about the company's financial risk and ability to withstand economic uncertainties.
The Financial leverage ratio has fluctuated but generally remained above 3.0, indicating that the company uses a significant amount of debt to support its operating activities. This level of leverage suggests a higher degree of financial risk and may indicate potential challenges in meeting debt obligations in adverse economic conditions.
In conclusion, while Sun Country Airlines Holdings Inc has maintained relatively stable debt-to-assets and debt-to-capital ratios, the increasing trend in the debt-to-equity ratio and consistently high financial leverage ratio suggest a need for careful monitoring of the company's solvency and risk management strategies.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 3.21 | 3.45 | 3.80 | 3.16 | 1.77 | 1.49 | 1.60 | 4.02 | 4.78 |
Sun Country Airlines Holdings Inc's interest coverage ratio has been relatively stable and increasing over the past eight quarters. The interest coverage ratio measures the company's ability to fulfill its interest payment obligations using its operating income.
From Q1 2022 to Q4 2023, the interest coverage ratio has shown a positive trend, starting at 2.36 and steadily increasing to 4.68. This indicates that the company's operating income has been consistently sufficient to cover its interest expenses, reflecting improved financial health.
The most recent interest coverage ratio of 3.93 in Q4 2023 indicates that the company's operating income is 3.93 times its interest expenses during that period. This suggests a healthy level of financial stability and ability to meet its debt obligations.
Overall, the trend of increasing interest coverage ratios for Sun Country Airlines Holdings Inc signifies a positive financial performance and a stronger ability to manage its debt burden.