Alaska Air Group Inc (ALK)
Return on equity (ROE)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 235,000 | 259,000 | 160,000 | 59,000 | 58,000 | 54,000 | 208,000 | 466,000 | 478,000 | 13,000 | -612,000 | -1,223,000 | -1,324,000 | -696,000 | 57,000 | 533,000 | 769,000 | 611,000 | 506,000 | 437,000 |
| Total stockholders’ equity | US$ in thousands | 4,113,000 | 4,093,000 | 3,951,000 | 3,689,000 | 3,816,000 | 3,826,000 | 3,799,000 | 3,637,000 | 3,801,000 | 3,531,000 | 3,324,000 | 2,875,000 | 2,988,000 | 3,454,000 | 3,861,000 | 4,015,000 | 4,331,000 | 4,252,000 | 3,973,000 | 3,746,000 |
| 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% |
December 31, 2023 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $235,000K ÷ $4,113,000K
= 5.71%
Alaska Air Group Inc.'s return on equity (ROE) has shown some volatility in recent quarters. The ROE for Q4 2023 was 5.71%, which is an improvement compared to the previous quarter's ROE of 6.33%. However, when looking at the trend over the past year, the ROE has fluctuated significantly, ranging from a low of 1.41% in Q3 2022 to a high of 12.81% in Q1 2022.
The decrease in ROE from the first quarter of 2022 to the current quarter may indicate a decline in the company's profitability and efficiency in generating returns for its shareholders. The relatively low ROE figures in the recent quarters may suggest challenges in utilizing shareholder equity effectively to generate profits.
It is essential for Alaska Air Group Inc. to closely monitor and address the factors impacting its ROE, such as operational efficiency, revenue growth, cost management, and overall profitability, in order to enhance shareholder value and strengthen its financial performance in the long term.
Peer comparison
Dec 31, 2023