Alaska Air Group Inc (ALK)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 235,000 | 58,000 | 478,000 | -1,324,000 | 769,000 |
| Total assets | US$ in thousands | 14,613,000 | 14,186,000 | 13,951,000 | 14,046,000 | 12,993,000 |
| ROA | 1.61% | 0.41% | 3.43% | -9.43% | 5.92% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $235,000K ÷ $14,613,000K
= 1.61%
Alaska Air Group Inc.'s return on assets (ROA) has varied significantly over the past five years. In 2019, the company achieved a robust ROA of 5.92%, indicating efficient utilization of its assets to generate profit. However, in 2020, the ROA plummeted to -9.43%, reflecting a period of financial distress where the company's assets were not effectively generating returns.
The subsequent years saw a mixed performance in ROA. In 2021, the ROA rebounded to a healthy 3.43%, suggesting improved asset utilization and profitability. This positive trend continued into 2022 with an ROA of 0.41%, though it was lower compared to previous years.
The most recent data for 2023 shows a notable increase in ROA to 1.61%, indicating a further improvement in the company's ability to generate profits from its assets. It's worth noting that while the ROA has shown improvement since the significant decline in 2020, it has not yet returned to the levels seen in 2019.
Overall, Alaska Air Group Inc.'s ROA performance highlights the company's ability to generate returns from its assets, with fluctuations reflecting both internal operational factors and external economic conditions. Continued monitoring of ROA will be crucial to assess the company's effectiveness in utilizing its assets for sustainable profitability.
Peer comparison
Dec 31, 2023