Alaska Air Group Inc (ALK)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 10,426,000 | 9,646,000 | 6,176,000 | 3,566,000 | 8,781,000 |
| Property, plant and equipment | US$ in thousands | 8,388,000 | 7,257,000 | 6,138,000 | 6,211,000 | 6,902,000 |
| Fixed asset turnover | 1.24 | 1.33 | 1.01 | 0.57 | 1.27 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $10,426,000K ÷ $8,388,000K
= 1.24
The fixed asset turnover ratio for Alaska Air Group Inc. has fluctuated over the past five years. In 2023, the ratio stands at 1.24, indicating that the company generated $1.24 in revenue for every dollar invested in fixed assets. This represents a slight decrease from the previous year when the ratio was 1.33.
The ratio was relatively low in 2020 at 0.57, suggesting that the company was less efficient in utilizing its fixed assets to generate revenue during that period. However, there was a significant improvement in 2021 with a ratio of 1.01, indicating a better utilization of fixed assets.
Overall, the fluctuation in the fixed asset turnover ratio for Alaska Air Group Inc. reflects varying levels of efficiency in generating revenue from its fixed assets over the years. Investors and stakeholders may consider monitoring this ratio to assess the company's operational efficiency and asset utilization strategies.
Peer comparison
Dec 31, 2023