Alaska Air Group Inc (ALK)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 4,113,000 | 3,816,000 | 3,801,000 | 2,988,000 | 4,331,000 |
| ROE | 5.71% | 1.52% | 12.58% | -44.31% | 17.76% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $235,000K ÷ $4,113,000K
= 5.71%
The return on equity (ROE) for Alaska Air Group Inc. has shown a mix of performance over the past five years. In 2023, the ROE increased to 5.71% from 1.52% in 2022, indicating some improvement in the company's ability to generate profit from shareholders' equity. However, it is still below the levels seen in 2021 and 2019.
In 2021, the ROE was relatively high at 12.58%, reflecting a strong profitability relative to the company's equity base. This was a notable improvement from the ROE of -44.31% in 2020, when the company experienced a significant decline in profitability compared to the previous year.
The highest ROE in the provided data set was in 2019, at 17.76%, indicating a robust performance in generating profit from shareholders' equity.
Overall, Alaska Air Group Inc.'s ROE has shown fluctuations over the years, with some years performing better than others. It is important for investors and stakeholders to monitor the company's ROE trend to assess its profitability and efficiency in utilizing shareholders' equity.
Peer comparison
Dec 31, 2023