Alaska Air Group Inc (ALK)
Current ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 2,705,000 | 3,644,000 | 3,244,000 | 3,099,000 | 3,040,000 | 3,810,000 | 4,232,000 | 3,974,000 | 3,920,000 | 4,001,000 | 4,771,000 | 4,284,000 | 4,006,000 | 4,465,000 | 3,244,000 | 2,572,000 | 2,037,000 | 2,202,000 | 2,218,000 | 2,001,000 |
| Total current liabilities | US$ in thousands | 4,459,000 | 5,074,000 | 5,176,000 | 4,857,000 | 4,493,000 | 4,709,000 | 4,902,000 | 4,570,000 | 3,991,000 | 4,024,000 | 4,846,000 | 4,762,000 | 4,293,000 | 4,207,000 | 4,120,000 | 3,730,000 | 3,201,000 | 3,346,000 | 3,534,000 | 3,386,000 |
| Current ratio | 0.61 | 0.72 | 0.63 | 0.64 | 0.68 | 0.81 | 0.86 | 0.87 | 0.98 | 0.99 | 0.98 | 0.90 | 0.93 | 1.06 | 0.79 | 0.69 | 0.64 | 0.66 | 0.63 | 0.59 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $2,705,000K ÷ $4,459,000K
= 0.61
The trend of Alaska Air Group Inc.'s current ratio over the past eight quarters shows a fluctuating pattern. The ratio has decreased from 0.87 in Q1 2022 to 0.61 in Q4 2023, indicating a potential weakening in the company's short-term liquidity position. A current ratio below 1 suggests that the company may face difficulties in meeting its short-term obligations with its current assets alone.
While the current ratio improved slightly in Q3 2023 compared to Q2 2023, it is still below historical levels. The ratio hit its peak at 0.87 in Q1 2022 but has been on a downward trend since then. This declining trend raises concerns about the company's ability to cover its current liabilities with its current assets.
It is important for investors and stakeholders to monitor Alaska Air Group Inc.'s current ratio closely to assess the company's liquidity position and its ability to meet its short-term financial obligations. The company may need to take steps to improve its current ratio in order to enhance its financial stability and meet its working capital needs effectively.
Peer comparison
Dec 31, 2023