Alaska Air Group Inc (ALK)
Activity ratios
Short-term
Turnover 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 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 68.22 | 65.42 | 76.92 | 80.46 | 76.74 | 78.43 | 70.29 | 72.76 | 86.79 | 76.42 | 90.00 | 76.26 | 84.23 | 97.37 | 103.66 | 95.57 | 88.97 | 93.78 | 109.69 | 105.83 |
| Receivables turnover | 27.22 | 30.38 | 29.48 | 29.90 | 32.59 | 26.32 | 20.47 | 10.79 | 11.43 | 9.44 | 6.76 | 5.27 | 7.43 | 15.53 | 23.84 | 30.61 | 27.19 | 22.86 | 21.70 | 23.21 |
| Payables turnover | 38.23 | 34.85 | 38.82 | 41.01 | 36.11 | 36.50 | 22.86 | 18.98 | 26.90 | 26.18 | 29.43 | 32.68 | 44.45 | 59.68 | 56.91 | 54.61 | 43.88 | 49.23 | 38.67 | 39.10 |
| Working capital turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | 19.33 | — | — | — | — | — | — |
The activity ratios of Alaska Air Group Inc. for Inventory Turnover and Payables Turnover are consistently reported as 0.00 across all quarters in the provided data. This suggests that the company is possibly managing its inventory and accounts payable inefficiently or operating in an industry where inventory turnover and payables turnover are not significant factors.
On the other hand, the Receivables Turnover ratio shows a varying trend over the quarters, with values ranging from 10.73 to 32.59. A higher receivables turnover ratio indicates that the company collects its outstanding accounts receivable more efficiently. The gradual increase from Q1 2022 to Q4 2022 followed by some fluctuations in 2023 may imply a shift in the company's credit policies or changes in customer payment behavior.
Unfortunately, the data provided does not include values for the Working Capital Turnover ratio, making it impossible to assess how effectively the company is utilizing its working capital to generate sales revenue. Further analysis would be needed to evaluate the company's working capital management efficiency.
Average number of days
| 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 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 5.35 | 5.58 | 4.75 | 4.54 | 4.76 | 4.65 | 5.19 | 5.02 | 4.21 | 4.78 | 4.06 | 4.79 | 4.33 | 3.75 | 3.52 | 3.82 | 4.10 | 3.89 | 3.33 | 3.45 |
| Days of sales outstanding (DSO) | days | 13.41 | 12.02 | 12.38 | 12.21 | 11.20 | 13.87 | 17.83 | 33.83 | 31.93 | 38.68 | 53.99 | 69.20 | 49.13 | 23.50 | 15.31 | 11.92 | 13.43 | 15.97 | 16.82 | 15.73 |
| Number of days of payables | days | 9.55 | 10.47 | 9.40 | 8.90 | 10.11 | 10.00 | 15.97 | 19.23 | 13.57 | 13.94 | 12.40 | 11.17 | 8.21 | 6.12 | 6.41 | 6.68 | 8.32 | 7.41 | 9.44 | 9.34 |
The Days of Inventory on Hand (DOH) for Alaska Air Group Inc. is not available in the provided data for the quarters of 2022 and 2023.
The Days of Sales Outstanding (DSO) reflects the average number of days it takes for the company to collect revenue after making a sale. The trend for DSO for Alaska Air Group Inc. has shown a fluctuating pattern over the past eight quarters. In Q4 2022, the DSO was at 11.20 days, indicating efficient collection of revenue. However, in Q2 2022, the DSO spiked to 17.87 days, but decreased to 12.39 days in Q2 2023. This suggests that the company has been improving its collection efficiency over time.
The Number of Days of Payables data is not provided for Alaska Air Group Inc. in the given table, making it difficult to assess the company's payment practices and liquidity management from this perspective.
Overall, based on the available DSO data, Alaska Air Group Inc. has shown improvements in its collection efficiency, which can be a positive sign for its cash flow management and overall liquidity position. However, a comprehensive analysis incorporating all activity ratios including DOH and payables turnover would provide a more holistic view of the company's operating efficiency.
Long-term
| 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 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 1.24 | 1.29 | 1.30 | 1.40 | 1.33 | 1.36 | 1.27 | 1.14 | 1.02 | 0.83 | 0.63 | 0.44 | 0.57 | 0.78 | 0.98 | 1.25 | 1.27 | 1.26 | 1.25 | 1.25 |
| Total asset turnover | 0.71 | 0.68 | 0.70 | 0.71 | 0.68 | 0.63 | 0.55 | 0.50 | 0.45 | 0.36 | 0.26 | 0.19 | 0.25 | 0.34 | 0.48 | 0.64 | 0.68 | 0.66 | 0.65 | 0.66 |
Alaska Air Group Inc.'s fixed asset turnover ratio has been relatively stable over the past eight quarters, ranging from 1.13 to 1.40. This ratio indicates the company's efficiency in generating sales revenue from its investment in fixed assets. A higher fixed asset turnover ratio generally suggests better utilization of fixed assets to generate revenue.
On the other hand, the total asset turnover ratio for Alaska Air Group Inc. has shown improvement from 0.50 in Q1 2022 to 0.71 in Q4 2023. This ratio reflects the company's ability to generate sales revenue from all its assets, including fixed and current assets. An increasing total asset turnover ratio may imply more efficient use of assets to generate sales.
Overall, these long-term activity ratios suggest that Alaska Air Group Inc. has been improving its efficiency in utilizing both fixed and total assets to generate revenue over the analyzed quarters.