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SkyWest (SkyWest) Interest Coverage : 0.89 (As of Dec. 2023)


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What is SkyWest Interest Coverage?

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. SkyWest's Operating Income for the three months ended in Dec. 2023 was $28 Mil. SkyWest's Interest Expense for the three months ended in Dec. 2023 was $-31 Mil. SkyWest's interest coverage for the quarter that ended in Dec. 2023 was 0.89. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for SkyWest's Interest Coverage or its related term are showing as below:

SKYW' s Interest Coverage Range Over the Past 10 Years
Min: 0.79   Med: 3.01   Max: 4.18
Current: 0.79


SKYW's Interest Coverage is ranked worse than
93.02% of 817 companies
in the Transportation industry
Industry Median: 5.6 vs SKYW: 0.79

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.


SkyWest Interest Coverage Historical Data

The historical data trend for SkyWest's Interest Coverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

* Premium members only.

SkyWest Interest Coverage Chart

SkyWest Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 4.18 0.88 2.93 1.43 0.79

SkyWest Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only - - 0.94 1.51 0.89

Competitive Comparison of SkyWest's Interest Coverage

For the Airlines subindustry, SkyWest's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


SkyWest's Interest Coverage Distribution in the Transportation Industry

For the Transportation industry and Industrials sector, SkyWest's Interest Coverage distribution charts can be found below:

* The bar in red indicates where SkyWest's Interest Coverage falls into.



SkyWest Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage=-1* Operating Income /Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt (1).


Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

SkyWest's Interest Coverage for the fiscal year that ended in Dec. 2023 is calculated as

Here, for the fiscal year that ended in Dec. 2023, SkyWest's Interest Expense was $-131 Mil. Its Operating Income was $104 Mil. And its Long-Term Debt & Capital Lease Obligation was $2,630 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2023 )/Interest Expense (A: Dec. 2023 )
=-1*104.069/-130.93
=0.79

SkyWest's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, SkyWest's Interest Expense was $-31 Mil. Its Operating Income was $28 Mil. And its Long-Term Debt & Capital Lease Obligation was $2,630 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2023 )/Interest Expense (Q: Dec. 2023 )
=-1*27.622/-31.049
=0.89

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

The higher the ratio, the stronger the company's Financial Strength is.


SkyWest  (NAS:SKYW) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .


SkyWest Interest Coverage Related Terms

Thank you for viewing the detailed overview of SkyWest's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.


SkyWest (SkyWest) Business Description

Traded in Other Exchanges
Address
444 South River Road, St. George, UT, USA, 84790
SkyWest Inc offers commercial air services in the United States, Canada, Mexico, and the Caribbean. Additionally, it leases aircraft to capable users to help generate revenue. Generally, SkyWest provides regional flights, and utilizes its smaller, lower-cost aircraft to carry passengers that booked tickets through major airlines. It partners with major global carriers to fly and operate aircraft for a fee. SkyWest may use the major carriers' brand and ground support to coordinate marketing and easily transport passengers. The company has two reportable segments: SkyWest Airlines and SkyWest Leasing.
Executives
James L Welch director 5550 SW MACADAM AVENUE, SUITE 200, PORTLAND OR 97239
Robert J Simmons officer: Chief Financial Officer C/O SKYWEST, INC., 444 SOUTH RIVER ROAD, SAINT GEORGE UT 84790
Jerry C Atkin director, officer: Chairman, President and CEO 684 S OAKRIDGE DRIVE, PINE VALLEY UT 84781
Wade J Steel officer: Executive Vice President 1847 VIEW POINT CIRCLE, SANTA CLARA UT 84765
Russell A Childs officer: Pres. & COO of SkyWest Airline 444 SOUTH RIVER ROAD, ST GEORGE UT 84790
Henry J Eyring director
Eric Woodward officer: Chief Accounting Officer 444 SOUTH RIVER ROAD, ST. GEORGE UT 84790
Smita Conjeevaram director 70 HERETOLD ROAD, BRONXVILLE NY 17708
Greg Wooley officer: Exec VP Operations C/O SKYWEST INC., 444 S. RIVER RD, ST. GEORGE UT 84790
W Steve Albrecht director 3901 NO FIRST ST, SAN JOSE CA 95134
Michael S Thompson officer: Chief Operating Officer, other: Skwest Airlines 2311 S COYOTE LOOP, WASHINGTON UT 84780
Terry Vais officer: Chief Commercial Officer 251 HIGHWOODS PKWY, NEWNAN GA 30265
Andrew C Roberts director C/O SKYWEST, INC., 444 S RIVER ROAD, ST. GEORGE UT 84790
Meredith R. Siegfried director C/O SKYWEST, INC., 444 S RIVER ROAD, ST. GEORGE UT 84790
Alexandria Panot Marren officer: COO of ExpressJet Airlines 444 S. RIVER ROAD, ST. GEORGE UT 84790