Alaska Air Group Inc (ALK)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 14,613,000 | 14,186,000 | 13,951,000 | 14,046,000 | 12,993,000 |
| Operating ROA | 2.70% | 0.49% | 4.91% | -12.64% | 8.18% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $394,000K ÷ $14,613,000K
= 2.70%
Alaska Air Group Inc.'s operating return on assets (operating ROA) has shown fluctuations over the past five years. In 2023, the operating ROA improved to 5.73%, up from 4.58% in 2022. This increase indicates that the company generated a higher operating profit relative to its total assets in the most recent year.
Looking back, in 2021, Alaska Air Group Inc. reported a negative operating ROA of -1.72%, which implies that the company incurred operating losses relative to its asset base during that period. The situation was more challenging in 2020, with a significantly lower operating ROA of -12.13%, indicating substantial operating losses compared to the total assets.
In contrast, in 2019, the company performed well with a positive operating ROA of 8.52%, reflecting strong profitability generated from its asset base. Overall, the trend in operating ROA for Alaska Air Group Inc. suggests variability in operational efficiency and profitability over the past five years, with the most recent year showing improvement.
Peer comparison
Dec 31, 2023