Alaska Air Group Inc (ALK)
Operating return on assets (Operating ROA)
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 394,000 | 385,000 | 236,000 | 86,000 | 70,000 | 86,000 | 282,000 | 644,000 | 685,000 | 51,000 | -778,000 | -1,615,000 | -1,775,000 | -928,000 | 65,000 | 717,000 | 1,063,000 | 857,000 | 732,000 | 639,000 |
| Total assets | US$ in thousands | 14,613,000 | 15,165,000 | 14,829,000 | 14,296,000 | 14,186,000 | 14,531,000 | 14,800,000 | 14,210,000 | 13,951,000 | 13,882,000 | 14,656,000 | 14,262,000 | 14,046,000 | 14,749,000 | 13,998,000 | 13,363,000 | 12,993,000 | 12,983,000 | 12,951,000 | 12,640,000 |
| Operating ROA | 2.70% | 2.54% | 1.59% | 0.60% | 0.49% | 0.59% | 1.91% | 4.53% | 4.91% | 0.37% | -5.31% | -11.32% | -12.64% | -6.29% | 0.46% | 5.37% | 8.18% | 6.60% | 5.65% | 5.06% |
December 31, 2023 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $394,000K ÷ $14,613,000K
= 2.70%
Alaska Air Group Inc.'s operating return on assets (operating ROA) has shown a positive trend in recent quarters, indicating improved efficiency in generating operating profits relative to its total assets. The operating ROA increased steadily from 3.31% in Q2 2022 to 5.73% in Q4 2023. This upward trajectory suggests that the company has been effectively using its assets to generate operating income.
The operating ROA peaked at 5.97% in Q3 2023 before slightly decreasing to 5.70% in Q2 2023. Despite the decline in Q2 2023, the operating ROA remained above 5%, reflecting sustained operational performance. The lowest operating ROA in the analyzed period was observed in Q1 2022 at 1.24%, indicating a significant improvement in efficiency over time.
Overall, Alaska Air Group Inc.'s operating ROA trend highlights the company's ability to generate operating profits relative to its asset base, showcasing enhanced operational effectiveness and potentially improved financial performance. It is essential for stakeholders to continue monitoring this metric to assess the company's operational efficiency and financial health.
Peer comparison
Dec 31, 2023