Alaska Air Group Inc (ALK)
Pretax margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 323,000 | 79,000 | 629,000 | -1,840,000 | 1,016,000 |
| Revenue | US$ in thousands | 10,426,000 | 9,646,000 | 6,176,000 | 3,566,000 | 8,781,000 |
| Pretax margin | 3.10% | 0.82% | 10.18% | -51.60% | 11.57% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $323,000K ÷ $10,426,000K
= 3.10%
The pretax margin of Alaska Air Group Inc. has fluctuated significantly over the past five years, with a clear downward trend observed from 2019 to 2020 and subsequent recovery in the following years.
In 2019, the pretax margin was healthy at 11.57%, indicating robust profitability before the impact of income taxes. However, a sharp decline occurred in 2020, plummeting to -51.60%, suggesting significant operational challenges or one-time charges that impacted the company's profitability drastically.
The company managed to recover in 2021, achieving a pretax margin of 10.18%, showcasing a strong rebound and improved operational efficiency. Subsequently, in 2022, the pretax margin increased further to 0.82%, indicating continued but modest growth.
The most recent data for 2023 reflects a pretax margin of 3.10%, showing a positive trend towards improved profitability but still below the levels seen in the pre-2020 period.
Overall, Alaska Air Group Inc.'s pretax margin performance demonstrates a mix of challenges and recoveries over the years, highlighting the company's ability to adapt to changing market conditions and strive towards enhancing profitability.
Peer comparison
Dec 31, 2023