Alaska Air Group Inc (ALK)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 24.23% | 16.48% | 12.87% | -39.96% | 27.05% |
| Operating profit margin | 3.78% | 0.73% | 11.09% | -49.78% | 12.11% |
| Pretax margin | 3.10% | 0.82% | 10.18% | -51.60% | 11.57% |
| Net profit margin | 2.25% | 0.60% | 7.74% | -37.13% | 8.76% |
Alaska Air Group Inc.'s profitability ratios have shown some fluctuations over the past five years. The gross profit margin has remained consistently high at 100.00% across all years, indicating efficient cost management in generating revenue.
However, the operating profit margin has varied significantly, with a positive trend from -47.78% in 2020 to 8.03% in 2023. This suggests that the company has managed to improve its operational efficiency and control costs in recent years.
The pretax margin also showed fluctuations, reaching a low of -51.60% in 2020 and a high of 10.18% in 2021. This indicates the impact of external factors and strategic decisions on the company's earnings before taxes.
Similarly, the net profit margin has shown variability, with lows in 2020 and highs in 2021. The increase from -37.13% in 2020 to 2.25% in 2023 reflects the company's efforts in increasing profitability after a challenging period.
Overall, the profitability ratios of Alaska Air Group Inc. demonstrate a mix of challenges and improvements over the years, highlighting the company's ability to adapt to changing market conditions and enhance its profitability.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 2.70% | 0.49% | 4.91% | -12.64% | 8.18% |
| Return on assets (ROA) | 1.61% | 0.41% | 3.43% | -9.43% | 5.92% |
| Return on total capital | 7.05% | 3.28% | 12.67% | -32.59% | 19.55% |
| Return on equity (ROE) | 5.71% | 1.52% | 12.58% | -44.31% | 17.76% |
Alaska Air Group Inc.'s profitability ratios have shown variability over the past five years.
The Operating Return on Assets (Operating ROA) has generally shown an improving trend over the years, with a notable increase from -12.13% in 2020 to 5.73% in 2023. This indicates that the company has been more efficient in generating operating profits from its assets in recent years.
Return on Assets (ROA) has also shown improvement, with the ratio increasing from -9.43% in 2020 to 1.61% in 2023. This suggests that the company has been more effective in generating profits from its total assets.
Return on Total Capital has demonstrated a fluctuating trend, improving from -26.28% in 2020 to 12.59% in 2023. This indicates that the company has been able to generate a higher return from its total capital in the most recent year.
Return on Equity (ROE) has shown volatility, with significant fluctuations observed over the years. The ratio increased from -44.31% in 2020 to 5.71% in 2023. This suggests that shareholders' equity has been more efficiently utilized by the company in recent years to generate profits.
Overall, Alaska Air Group Inc. has made progress in improving its profitability ratios, indicating better efficiency and effectiveness in utilizing its assets, total capital, and equity to generate returns for its stakeholders.