Alaska Air Group Inc (ALK)
Gross profit margin
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit (ttm) | US$ in thousands | 2,364,000 | 2,127,000 | 1,885,000 | 1,928,000 | 1,899,000 | 1,938,000 | 1,898,000 | 1,700,000 | 1,662,000 | 1,511,000 | 1,339,000 | 1,431,000 | 1,354,000 | 806,000 | 368,000 | -448,000 | -414,000 | 372,000 | 1,027,000 | 1,758,000 |
| Revenue (ttm) | US$ in thousands | 11,735,000 | 10,754,000 | 10,521,000 | 10,462,000 | 10,426,000 | 10,352,000 | 10,341,000 | 10,161,000 | 9,646,000 | 9,066,000 | 8,191,000 | 7,060,000 | 6,176,000 | 5,085,000 | 3,833,000 | 2,727,000 | 3,566,000 | 4,986,000 | 6,674,000 | 8,541,000 |
| Gross profit margin | 20.14% | 19.78% | 17.92% | 18.43% | 18.21% | 18.72% | 18.35% | 16.73% | 17.23% | 16.67% | 16.35% | 20.27% | 21.92% | 15.85% | 9.60% | -16.43% | -11.61% | 7.46% | 15.39% | 20.58% |
December 31, 2024 calculation
Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $2,364,000K ÷ $11,735,000K
= 20.14%
The gross profit margin of Alaska Air Group Inc has exhibited fluctuations over the period under consideration. The margin started at a relatively healthy 20.58% as of March 31, 2020, indicating the company was generating a significant profit on its sales after accounting for the cost of goods sold. However, there was a decline in the margin to 15.39% by June 30, 2020, and further reductions in the subsequent quarters, reaching a negative gross profit margin of -11.61% by December 31, 2020.
The negative gross profit margin in late 2020 is a concerning sign as it suggests that the company's cost of goods sold exceeded its revenue from sales during that period. This could be attributed to various factors such as pricing pressures, higher operating expenses, or inefficient cost management.
Subsequently, there was a mix of positive and negative fluctuations in the gross profit margin over the following quarters. The margin showed signs of recovery, reaching 20.14% as of December 31, 2024. This positive trend indicates that the company was able to improve its profitability by effectively managing its costs and driving revenue growth.
Overall, the analysis of Alaska Air Group Inc's gross profit margin highlights the importance of closely monitoring financial performance metrics to assess the company's operational efficiency and profitability over time.
Peer comparison
Dec 31, 2024