Alaska Air Group Inc (ALK)
Operating return on assets (Operating ROA)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 755,000 | 781,000 | 651,000 | 515,000 | 525,000 | 488,000 | 511,000 | 424,000 | 419,000 | 396,000 | 420,000 | 719,000 | 685,000 | 73,000 | -756,000 | -1,593,000 | -1,753,000 | -928,000 | 65,000 | 717,000 |
| Total assets | US$ in thousands | 19,768,000 | 19,559,000 | 15,342,000 | 14,813,000 | 15,834,000 | 15,165,000 | 14,829,000 | 14,296,000 | 14,281,000 | 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 |
| Operating ROA | 3.82% | 3.99% | 4.24% | 3.48% | 3.32% | 3.22% | 3.45% | 2.97% | 2.93% | 2.73% | 2.84% | 5.06% | 4.91% | 0.53% | -5.16% | -11.17% | -12.48% | -6.29% | 0.46% | 5.37% |
December 31, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $755,000K ÷ $19,768,000K
= 3.82%
Operating return on assets (Operating ROA) is a key financial ratio that measures a company's ability to generate operating profits from its assets.
Analyzing the Operating ROA trend of Alaska Air Group Inc from March 31, 2020, to December 31, 2024, reveals fluctuations in the company's operational efficiency and asset utilization.
- The Operating ROA ranged from a low of -12.48% on December 31, 2020, to a high of 5.37% on March 31, 2020, showing significant variability in the company's ability to generate operating income relative to its assets.
- There was a notable improvement in Operating ROA from 2020 to 2021, with a positive trend observed in the first half of 2021, reaching a peak of 5.06% on March 31, 2022.
- The trend continued to be positive through 2023, with Operating ROA consistently above 3%, indicating better operational performance and asset utilization.
- However, in the later quarters of 2024, the Operating ROA started to stabilize around 3-4%, suggesting a potential plateau in the company's efficiency in generating operating income from its assets.
Overall, while Alaska Air Group Inc experienced fluctuations in its Operating ROA over the analyzed period, the company displayed periods of improvement and stability in its operational efficiency and asset productivity. Continued monitoring of this ratio will be essential to assess the company's ongoing performance and effectiveness in utilizing its assets to generate operating profits.
Peer comparison
Dec 31, 2024