Alaska Air Group Inc (ALK)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 395,000 | 235,000 | 58,000 | 478,000 | -1,307,000 |
| Total stockholders’ equity | US$ in thousands | 4,372,000 | 4,113,000 | 3,816,000 | 3,801,000 | 3,005,000 |
| ROE | 9.03% | 5.71% | 1.52% | 12.58% | -43.49% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $395,000K ÷ $4,372,000K
= 9.03%
Alaska Air Group Inc's return on equity (ROE) has shown significant fluctuations over the past five years.
As of December 31, 2020, the ROE was notably negative at -43.49%, indicating that the company's net income was insufficient to generate a positive return for its shareholders. However, by December 31, 2021, the ROE improved substantially to 12.58%, reflecting a positive turnaround in the company's profitability and efficiency in utilizing shareholder equity.
In the following years, the ROE continued to fluctuate, with values of 1.52% as of December 31, 2022, 5.71% as of December 31, 2023, and 9.03% as of December 31, 2024. These figures suggest that Alaska Air Group Inc's profitability and efficiency in generating returns from shareholder equity have been gradually improving, albeit with some variability.
Overall, it is evident that Alaska Air Group Inc has made efforts to enhance its financial performance and effectively utilize shareholder equity to generate returns, as reflected in the increasing trend of ROE over the past few years. Further analysis and monitoring of ROE would be beneficial to assess the company's ongoing financial health and sustainability.
Peer comparison
Dec 31, 2024