Alaska Air Group Inc (ALK)
Operating profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 394,000 | 70,000 | 685,000 | -1,775,000 | 1,063,000 |
| Revenue | US$ in thousands | 10,426,000 | 9,646,000 | 6,176,000 | 3,566,000 | 8,781,000 |
| Operating profit margin | 3.78% | 0.73% | 11.09% | -49.78% | 12.11% |
December 31, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $394,000K ÷ $10,426,000K
= 3.78%
Alaska Air Group Inc.'s operating profit margin has shown fluctuations over the past five years.
In 2019, the operating profit margin was strong at 12.61%, indicating that the company was efficiently managing its operating expenses relative to its revenue. However, in 2020, the operating profit margin deteriorated significantly to -47.78%, suggesting that the company incurred substantial losses from its operations that year.
The situation improved in 2021, as the operating profit margin recovered to -3.89%, although still negative. Further progress was made in 2022, with the operating profit margin increasing to 6.74%, indicating a return to profitability and more efficient cost management.
By the end of 2023, Alaska Air Group Inc. achieved an operating profit margin of 8.03%, showing continued improvement in operational efficiency and profitability.
Overall, the company has demonstrated the ability to navigate challenging conditions and enhance its operating performance, as evidenced by the positive trend in operating profit margins in recent years.
Peer comparison
Dec 31, 2023