Alaska Air Group Inc (ALK)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 1,201,000 | 281,000 | 338,000 | 470,000 | 1,370,000 |
| Short-term investments | US$ in thousands | 1,274,000 | 1,510,000 | 2,079,000 | 2,646,000 | 1,976,000 |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 6,145,000 | 4,459,000 | 4,512,000 | 3,991,000 | 4,271,000 |
| Quick ratio | 0.40 | 0.40 | 0.54 | 0.78 | 0.78 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,201,000K
+ $1,274,000K
+ $—K)
÷ $6,145,000K
= 0.40
The quick ratio of Alaska Air Group Inc has been relatively stable from December 31, 2020, to December 31, 2021, at 0.78, indicating the company's ability to meet its short-term obligations using its most liquid assets. However, there was a notable decline in the quick ratio to 0.54 as of December 31, 2022, followed by a further decrease to 0.40 as of December 31, 2023, and this continued into December 31, 2024.
A quick ratio below 1.0 suggests that the company may have difficulty meeting its short-term liabilities with its liquid assets alone. The decreasing trend in the quick ratio over the years raises concerns about the company's liquidity position and its ability to cover immediate financial obligations without relying on selling inventory or obtaining additional external financing.
It is essential for Alaska Air Group Inc to closely monitor its liquidity position and take necessary steps to improve its quick ratio to ensure financial stability and resilience in the face of potential economic challenges.
Peer comparison
Dec 31, 2024