Alaska Air Group Inc (ALK)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 20.12% | 23.62% | 17.23% | 21.92% | -11.61% |
| Operating profit margin | 4.86% | 3.78% | 3.50% | 5.52% | -49.16% |
| Pretax margin | 4.64% | 3.10% | 0.82% | 10.18% | -50.98% |
| Net profit margin | 3.37% | 2.25% | 0.60% | 7.74% | -36.65% |
Alaska Air Group Inc's profitability ratios show mixed performance over the past five years. The gross profit margin has improved significantly from -11.61% in 2020 to 20.12% in 2024, indicating that the company has been able to effectively manage its cost of goods sold.
In terms of operating profit margin, there was a positive trend observed, with the ratio increasing from -49.16% in 2020 to 4.86% in 2024. This suggests that the company has been able to enhance its operational efficiency and generate more profit from its core business activities.
The pretax margin also showed improvement, moving from a negative figure of -50.98% in 2020 to 4.64% in 2024. This indicates that Alaska Air Group Inc has been able to better manage its operating expenses and generate higher earnings before taxes.
Finally, the net profit margin exhibited a positive trajectory, increasing from -36.65% in 2020 to 3.37% in 2024. This implies that after accounting for all expenses, including taxes, the company has been able to increase its profitability and effectively convert its revenue into net income.
Overall, Alaska Air Group Inc has shown a positive trend in its profitability ratios over the five-year period, indicating improving operational efficiency and financial performance.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 2.88% | 2.49% | 2.37% | 2.44% | -12.48% |
| Return on assets (ROA) | 2.00% | 1.48% | 0.41% | 3.43% | -9.31% |
| Return on total capital | 15.71% | 19.89% | 20.49% | -6.76% | -58.34% |
| Return on equity (ROE) | 9.03% | 5.71% | 1.52% | 12.58% | -43.49% |
Alaska Air Group Inc's profitability ratios have shown improvement over the years.
1. Operating return on assets (Operating ROA) improved from -12.48% in 2020 to 2.88% in 2024, indicating that the company was able to generate positive operating income relative to its assets.
2. Return on assets (ROA) also showed a positive trend, increasing from -9.31% in 2020 to 2.00% in 2024, reflecting the company's ability to generate profit from its total assets.
3. Return on total capital improved significantly from -58.34% in 2020 to 15.71% in 2024, indicating that the company was able to generate a positive return for both debt and equity holders.
4. Return on equity (ROE) also displayed a positive trend, rising from -43.49% in 2020 to 9.03% in 2024, demonstrating an increase in profitability for the shareholders.
Overall, the upward trajectory of these profitability ratios suggests that Alaska Air Group Inc has been successful in improving its operational efficiency and generating higher returns for its stakeholders over the years.