Alaska Air Group Inc (ALK)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 3,760,000 | 2,705,000 | 3,040,000 | 3,920,000 | 4,006,000 |
| Total current liabilities | US$ in thousands | 6,145,000 | 4,459,000 | 4,512,000 | 3,991,000 | 4,271,000 |
| Current ratio | 0.61 | 0.61 | 0.67 | 0.98 | 0.94 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $3,760,000K ÷ $6,145,000K
= 0.61
The current ratio of Alaska Air Group Inc has shown a fluctuating trend over the past five years. As of December 31, 2020, the current ratio stood at 0.94, indicating that the company had slightly less current assets than current liabilities to cover its short-term obligations.
By December 31, 2021, the current ratio improved to 0.98, suggesting a better ability to meet its short-term liabilities with current assets. However, the ratio dropped to 0.67 by December 31, 2022, and further decreased to 0.61 by the end of 2023 and 2024.
The decreasing trend in the current ratio may raise concerns about the company's liquidity position and its ability to meet short-term financial obligations. It indicates that the company may be facing challenges in managing its current assets efficiently relative to its current liabilities, which could potentially impact its financial health and ability to fund its operations smoothly in the short term. Additional analysis of the components contributing to the current assets and liabilities would be necessary to gain a more in-depth understanding of the company's liquidity position.
Peer comparison
Dec 31, 2024