Alaska Air Group Inc (ALK)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 24.10% | 22.96% | 20.46% | 16.89% | 17.26% | 18.83% | 20.36% | 20.07% | 13.78% | 6.33% | -22.10% | -59.41% | -34.63% | -11.31% | 13.02% | 23.91% | 27.05% | 31.44% | 28.52% | 26.12% |
| Operating profit margin | 3.78% | 3.72% | 2.28% | 0.85% | 0.73% | 0.95% | 3.44% | 9.07% | 10.98% | 1.01% | -20.30% | -59.22% | -49.78% | -18.61% | 0.97% | 8.39% | 12.11% | 9.95% | 8.67% | 7.69% |
| Pretax margin | 3.10% | 3.42% | 2.18% | 0.85% | 0.82% | 0.80% | 3.08% | 8.39% | 10.08% | -0.85% | -22.88% | -62.19% | -51.60% | -19.13% | 0.76% | 8.11% | 11.57% | 9.39% | 8.02% | 7.04% |
| Net profit margin | 2.25% | 2.50% | 1.55% | 0.58% | 0.60% | 0.59% | 2.53% | 6.56% | 7.66% | 0.26% | -15.97% | -44.85% | -37.13% | -13.96% | 0.85% | 6.24% | 8.76% | 7.09% | 6.00% | 5.26% |
Alaska Air Group Inc. has shown consistent performance in terms of gross profit margin, maintaining a 100% margin across all quarters in 2022 and 2023. This signifies the company's ability to efficiently manage its production costs and generate profits from its core operations.
In terms of operating profit margin, we see some fluctuations quarter to quarter, with the highest margin recorded in Q3 2023 at 8.74% and the lowest in Q1 2022 at 2.49%. This ratio indicates the company's ability to control its operating expenses relative to its revenue.
The pretax margin also varied over the quarters, with the highest figure in Q1 2022 at 8.44% and the lowest in Q1 2023 at 0.85%. This ratio reflects the company's ability to generate profits before accounting for taxes on its earnings.
Net profit margin, which represents the company's bottom line profitability after all expenses and taxes have been deducted, ranged from 0.58% in Q1 2023 to 2.50% in Q3 2023. This ratio demonstrates the company's efficiency in managing its costs and generating profits for its shareholders.
Overall, the profitability ratios of Alaska Air Group Inc. reflect a mix of performance levels across the quarters, indicating fluctuations in profitability but also showing overall stability and a focus on cost management.
Return on investment
| 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 return on assets (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% |
| Return on assets (ROA) | 1.61% | 1.71% | 1.08% | 0.41% | 0.41% | 0.37% | 1.41% | 3.28% | 3.43% | 0.09% | -4.18% | -8.58% | -9.43% | -4.72% | 0.41% | 3.99% | 5.92% | 4.71% | 3.91% | 3.46% |
| Return on total capital | 6.26% | 6.19% | 4.04% | 1.57% | 1.23% | 1.50% | 4.90% | 11.58% | 12.10% | 1.55% | -13.11% | -30.40% | -32.63% | -25.71% | 3.03% | 18.98% | 19.55% | 15.61% | 13.81% | 12.46% |
| Return on equity (ROE) | 5.71% | 6.33% | 4.05% | 1.60% | 1.52% | 1.41% | 5.48% | 12.81% | 12.58% | 0.37% | -18.41% | -42.54% | -44.31% | -20.15% | 1.48% | 13.28% | 17.76% | 14.37% | 12.74% | 11.67% |
Alaska Air Group Inc.'s profitability ratios exhibit fluctuations over the quarters presented.
1. Operating Return on Assets (Operating ROA): The trend in Operating ROA is relatively stable, ranging from 3.31% to 5.97% over the past eight quarters. The most recent quarter, Q4 2023, saw a decrease from the previous quarter but remained within the range. This ratio indicates the company's ability to generate profits from its assets before interest and taxes.
2. Return on Assets (ROA): Alaska Air Group Inc.'s ROA shows variability, with a range from 0.37% to 1.71% over the same period. Q4 2023 and Q3 2023 recorded a decrease compared to the previous quarter, signaling a potential decline in the company's efficiency in generating profits relative to its total assets.
3. Return on Total Capital: The Return on Total Capital ratio is relatively stable, fluctuating between 8.03% and 13.18% over the past eight quarters. Q4 2023 and Q3 2023 showed a slight decrease compared to the previous quarters. This ratio reflects the company's ability to generate returns from all sources of capital, including debt and equity.
4. Return on Equity (ROE): Alaska Air Group Inc.'s ROE also exhibits fluctuations over the quarters, ranging from 1.41% to 12.81%. Q4 2023 and Q3 2023 saw a decrease compared to the previous quarters. ROE measures the company's ability to generate profits from shareholders' equity and indicates shareholder returns.
Overall, while some profitability ratios have shown stability over time, others have experienced fluctuations. It is essential for investors and stakeholders to closely monitor these ratios to assess Alaska Air Group Inc.'s financial performance and profitability trends.