Alaska Air Group Inc (ALK)

Liquidity ratios

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Current ratio 0.61 0.60 0.68 0.65 0.61 0.72 0.63 0.64 0.67 0.81 0.86 0.87 0.98 0.99 0.98 0.90 0.94 1.06 0.79 0.69
Quick ratio 0.40 0.40 0.51 0.47 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
Cash ratio 0.40 0.40 0.51 0.47 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

The current ratio of Alaska Air Group Inc has shown fluctuations over the years, ranging from a low of 0.61 to a high of 1.06. However, it seems to have generally stayed below the benchmark of 1.0, indicating that the company may have had difficulties covering its short-term liabilities with its current assets.

Similarly, the quick ratio, which excludes inventory from current assets, has also displayed variability, ranging from 0.40 to 0.89. This ratio provides a more conservative measure of liquidity compared to the current ratio, and the values below 1.0 suggest that Alaska Air Group Inc may have struggled to meet its short-term obligations without relying on inventory.

The cash ratio, which is the most stringent measure of liquidity as it only considers cash and cash equivalents, has also exhibited fluctuations, moving between 0.40 and 0.89. While the cash ratio provides insight into the company's ability to pay off its current liabilities using its most liquid assets, the values below 1.0 indicate that Alaska Air Group Inc may have faced constraints in meeting its short-term financial obligations solely with cash on hand.

Overall, the liquidity ratios of Alaska Air Group Inc suggest that the company may have faced challenges in sufficiently covering its short-term liabilities with its current assets, indicating a potential need for improved liquidity management strategies to ensure financial stability and meet its obligations in a timely manner.

Additional liquidity measure

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Cash conversion cycle days 7.75 8.55 4.48 4.45 4.97 5.29 4.63 4.53 4.75 4.54 4.95 5.06 4.69 5.29 5.48 6.55 5.23 4.51 3.62 3.66

The cash conversion cycle of Alaska Air Group Inc has shown fluctuations over the years, ranging from a low of 3.62 days to a high of 8.55 days. The company's ability to convert its investments in inventory and receivables into cash has varied, impacting its overall liquidity and operational efficiency.

In the most recent quarter, the cash conversion cycle stood at 7.75 days, indicating a slightly longer period for the company to convert its resources into cash compared to the previous quarter. A longer cash conversion cycle can suggest inefficiencies in managing working capital and may require closer attention to optimize cash flow.

Overall, the trend of the cash conversion cycle for Alaska Air Group Inc shows periods of improvement followed by slight increases, signifying the company's ongoing efforts to enhance operational efficiency and maintain a healthy level of liquidity. Stakeholders should continue to monitor these fluctuations to assess the company's financial health and effectiveness in managing its cash resources.