Alaska Air Group Inc (ALK)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | 47.11 | 68.65 | 76.77 | 77.77 | 69.82 |
| Receivables turnover | — | — | — | — | — |
| Payables turnover | — | — | — | — | — |
| Working capital turnover | — | — | — | — | — |
Alaska Air Group Inc's inventory turnover has shown a consistent trend, increasing from 69.82 in 2020 to 77.77 in 2021, 76.77 in 2022, then dipping slightly to 68.65 in 2023 and further down to 47.11 in 2024. This indicates that the company is efficiently managing its inventory levels and converting them into sales, although a significant drop in 2024 could suggest issues with inventory management or potentially slower sales.
The receivables turnover, payables turnover, and working capital turnover ratios are all marked as unavailable for the years 2020 to 2024, indicating that specific data related to accounts receivable, accounts payable, and working capital turnover are not provided or are not applicable for analysis. Without this information, it is challenging to assess the efficiency of the company's receivables collection, payables management, and how effectively working capital is utilized to generate sales.
Overall, while Alaska Air Group Inc's inventory turnover appears relatively healthy, the lack of information on receivables, payables, and working capital turnover ratios limits a comprehensive assessment of the company's overall activity and efficiency in managing its assets and liabilities.
Average number of days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 7.75 | 5.32 | 4.75 | 4.69 | 5.23 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
Alaska Air Group Inc's activity ratios reveal important insights into its operational efficiency.
1. Days of Inventory on Hand (DOH):
- The company's DOH decreased from 5.23 days in 2020 to 4.75 days in 2022, indicating that Alaska Air Group has been managing its inventory more efficiently.
- However, there was a slight increase in DOH to 5.32 days by the end of 2023, suggesting a potential buildup of inventory.
- The DOH spiked to 7.75 days by the end of 2024, which could point to inventory management challenges or changes in the company's business operations that require further investigation.
2. Days of Sales Outstanding (DSO):
- The DSO data is missing for all years, indicating that there may not be sufficient information available to calculate this metric.
- Without DSO figures, it is challenging to evaluate the efficiency of Alaska Air Group's accounts receivable management and the speed of its revenue collection from customers.
3. Number of Days of Payables:
- Similar to DSO, the information for the number of days of payables is not provided for any year, making it difficult to assess the company's payment terms with its suppliers and vendors.
- Understanding the days of payables is crucial for evaluating Alaska Air Group's cash flow management and relationships with its creditors.
In conclusion, while the inventory turnover trend demonstrates improvements followed by a significant increase, the absence of data on DSO and payables hinders a comprehensive analysis of Alaska Air Group Inc's overall activity ratios and operational performance. Further details or additional data would be necessary to draw more definitive conclusions about the company's efficiency in managing its working capital and operational processes.
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | — | — | 1.09 | 0.86 | 0.57 |
| Total asset turnover | 0.59 | 0.66 | 0.68 | 0.44 | 0.25 |
Alaska Air Group Inc's fixed asset turnover has shown an increasing trend over the past few years, indicating that the company is generating more revenue per dollar invested in fixed assets. The ratio increased from 0.57 in 2020 to 1.09 in 2022, suggesting improved efficiency in utilizing its fixed assets to generate sales. However, in 2023 and 2024, the data is unavailable, so it is uncertain whether this positive trend continued.
On the other hand, the total asset turnover ratio, which measures the company's ability to generate sales from all its assets, also showed an increasing trend from 2020 to 2022. This indicates that Alaska Air Group Inc became more efficient in generating revenue from its total asset base during this period. However, the ratio slightly decreased in 2023 and 2024 to 0.66 and 0.59, respectively, which may suggest a dip in the company's overall asset utilization efficiency in these years.
Overall, based on the long-term activity ratios analysis, Alaska Air Group Inc has shown improved efficiency in utilizing both fixed assets and total assets to generate revenue up to 2022. However, the slight decline in total asset turnover in 2023 and 2024 indicates a potential shift in asset utilization efficiency that may require further investigation.