Alaska Air Group Inc (ALK)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 2,705,000 | 3,040,000 | 3,920,000 | 4,006,000 | 2,037,000 |
| Total current liabilities | US$ in thousands | 4,459,000 | 4,493,000 | 3,991,000 | 4,293,000 | 3,201,000 |
| Current ratio | 0.61 | 0.68 | 0.98 | 0.93 | 0.64 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $2,705,000K ÷ $4,459,000K
= 0.61
The current ratio of Alaska Air Group Inc. has exhibited fluctuations over the past five years. In 2023, the current ratio decreased to 0.61 from 0.68 in 2022. This indicates that the company's ability to cover its short-term liabilities with its current assets has weakened compared to the previous year. However, it is important to note that the current ratio was significantly higher in 2021 at 0.98, reflecting a stronger liquidity position at that time. The ratio then decreased to 0.93 in 2020 before dropping to 0.64 in 2019.
Overall, the downward trend in the current ratio from 2021 to 2023 may raise concerns about the company's liquidity and ability to meet its short-term obligations. It would be advisable for stakeholders to further investigate the factors contributing to this decline and assess the company's operational efficiency and working capital management strategies.
Peer comparison
Dec 31, 2023