Alaska Air Group Inc (ALK)

Liquidity 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
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
Quick ratio	0.49	0.55	0.54	0.57	0.60	0.74	0.78	0.78	0.92	0.93	0.93	0.85	0.89	0.97	0.75	0.64	0.58	0.60	0.57	0.53
Cash ratio	0.40	0.48	0.47	0.50	0.54	0.67	0.70	0.63	0.78	0.79	0.82	0.75	0.78	0.89	0.68	0.57	0.48	0.48	0.46	0.42

Alaska Air Group Inc.'s liquidity ratios, as indicated by the current, quick, and cash ratios, have shown a downward trend over the past eight quarters. The current ratio, which measures the company's ability to pay its short-term obligations with its current assets, decreased from 0.87 in Q1 2022 to 0.61 in Q4 2023. Similarly, the quick ratio, which provides a more conservative measure by excluding inventory from current assets, also declined from 0.85 in Q1 2022 to 0.58 in Q4 2023.

The cash ratio, which specifically focuses on the company's ability to cover its liabilities using only cash and cash equivalents, saw a decrease from 0.71 in Q1 2022 to 0.49 in Q4 2023. This trend suggests that Alaska Air Group Inc. may be facing challenges in maintaining sufficient liquid assets to meet its short-term financial obligations.

Overall, the decreasing trend in all three liquidity ratios indicates potential liquidity constraints for the company. It is essential for Alaska Air Group Inc. to closely monitor and manage its liquidity position to ensure it can meet its financial commitments in a timely manner.

Additional liquidity measure

		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
Cash conversion cycle	days	9.21	7.12	7.73	7.84	5.85	8.52	7.06	19.61	22.57	29.51	45.65	62.82	45.25	21.13	12.42	9.06	9.21	12.45	10.71	9.84

The cash conversion cycle of Alaska Air Group Inc. has shown varying trends over the past eight quarters. In Q4 2023, the company's cash conversion cycle was 13.41 days, indicating that on average, it takes approximately 13.41 days for the company to convert its investments in inventory and other resources into cash from sales. This represents a slight increase from the previous quarter, Q3 2023, where the cycle was 12.02 days.

The company's cash conversion cycle has generally remained relatively stable and efficient in recent quarters, with values ranging between 11.20 days and 17.87 days. However, there was a significant increase in the cycle in Q1 2022, where it reached 34.02 days, indicating a potential delay in cash flow conversion during that period.

Overall, a lower cash conversion cycle is favorable as it signifies that the company is able to quickly convert its resources into cash, potentially indicating efficient operations and strong liquidity management. Conversely, a higher cash conversion cycle could indicate inefficiencies in managing working capital and could lead to cash flow challenges.

Alaska Air Group Inc. should continue to monitor its cash conversion cycle closely to ensure optimal management of working capital and to sustain healthy cash flow operations.