Alaska Air Group Inc (ALK)

Short-term

Turnover ratios

Based on the provided data for Alaska Air Group Inc, let's analyze the activity ratios:

1. Inventory Turnover: The inventory turnover ratio measures how efficiently a company manages its inventory by showing the number of times the inventory is sold and replaced during a specific period. Alaska Air Group Inc's inventory turnover has fluctuated over the years, ranging from a high of 100.84 in June 2020 to a low of 42.71 in September 2024. Generally, a higher inventory turnover ratio indicates better inventory management and liquidity.

2. Receivables Turnover: Unfortunately, data for receivables turnover is not available for analysis. This ratio typically measures how well a company collects its outstanding credit sales during a specific period. A higher receivables turnover ratio is favorable as it indicates efficient collection practices.

3. Payables Turnover: The payables turnover ratio calculates how efficiently a company pays its suppliers during a specific period. In this case, data for payables turnover is not provided, making it difficult to assess Alaska Air Group Inc's payment cycle efficiency.

4. Working Capital Turnover: The working capital turnover ratio shows how well a company utilizes its working capital to generate sales revenue. The available data shows a working capital turnover of 19.33 in September 2020. This indicates that for every dollar of working capital, the company generated $19.33 in revenue during that specific period.

Overall, the inventory turnover ratio provides valuable insights into Alaska Air Group Inc's inventory management efficiency, while the absence of data for receivables and payables turnover limits a comprehensive assessment of the company's overall activity performance.

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Average number of days

Based on the provided data, let's analyze the activity ratios of Alaska Air Group Inc:

1. Days of Inventory on Hand (DOH):
- The Days of Inventory on Hand for Alaska Air Group Inc has shown fluctuating trends over the years.
- The company managed its inventory efficiently with an average of around 5 days on hand.
- An increase in DOH could indicate slower inventory turnover, potentially tying up more capital in inventory.

2. Days of Sales Outstanding (DSO):
- Unfortunately, there is no data available for Days of Sales Outstanding for Alaska Air Group Inc.
- DSO is a crucial metric in determining the efficiency of collecting receivables, and the absence of data restricts the assessment of the company's receivables management.

3. Number of Days of Payables:
- Similarly, no data is provided for the Number of Days of Payables for the company.
- The payables period is important as it represents the number of days a company takes to pay off its suppliers. Without this information, it is challenging to evaluate Alaska Air Group Inc's payables management.

In conclusion, based on the available data, Alaska Air Group Inc appears to manage its inventory efficiently with a relatively low average Days of Inventory on Hand. However, the lack of information on Days of Sales Outstanding and Number of Days of Payables limits a comprehensive assessment of the company's overall activity ratios.

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Long-term

The fixed asset turnover ratio of Alaska Air Group Inc has shown a fluctuating trend over the past few years, starting at 1.09 in March 2020, declining to a low of 0.44 in March 2021, and gradually increasing to 1.16 by March 2023. This ratio measures how efficiently the company is utilizing its fixed assets to generate revenue, with a higher ratio indicating better utilization.

In contrast, the total asset turnover ratio, which measures the company's ability to generate sales from its total assets, has also varied but generally increased over the same period. Starting at 0.64 in March 2020, the ratio dipped to 0.19 in March 2021 before climbing to 0.71 by March 2023. A higher total asset turnover ratio suggests that the company is effectively using its assets to generate revenue.

Overall, the upward trend in both fixed asset turnover and total asset turnover ratios indicates that Alaska Air Group Inc has been improving its efficiency in generating revenue from its assets. This may be a positive sign of improved operational performance and resource utilization within the company.