Alaska Air Group Inc (ALK)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 570,000 | 394,000 | 338,000 | 341,000 | -1,753,000 |
| Total assets | US$ in thousands | 19,768,000 | 15,834,000 | 14,281,000 | 13,951,000 | 14,046,000 |
| Operating ROA | 2.88% | 2.49% | 2.37% | 2.44% | -12.48% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $570,000K ÷ $19,768,000K
= 2.88%
Alaska Air Group Inc's operating return on assets (operating ROA) has shown a significant improvement over the years. Starting at a negative figure of -12.48% on December 31, 2020, the company has managed to turn around its operating efficiency to achieve positive operating ROA figures in the subsequent years. By December 31, 2024, the operating ROA had increased to 2.88%, indicating that the company has been able to generate more operating income relative to its assets.
The consistent upward trend in operating ROA from 2021 to 2024 suggests that Alaska Air Group Inc has been effectively utilizing its assets to generate operating profits. This improvement reflects positively on the company's operational efficiency and management's ability to maximize returns on the assets employed in its business activities.
Overall, the positive trajectory of Alaska Air Group Inc's operating ROA signifies a positive operational performance and suggests that the company is effectively managing its assets to generate operating income and create value for its shareholders.
Peer comparison
Dec 31, 2024