Alaska Air Group Inc (ALK)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 805,000 | 757,000 | 724,000 | 780,000 | 751,000 | 809,000 | 957,000 | 824,000 | 821,000 | 750,000 | 527,000 | 120,000 | 157,000 | -497,000 | -1,313,000 | -1,568,000 | -1,731,000 | -897,000 | 82,000 | 721,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 4,372,000 | 4,479,000 | 4,226,000 | 3,977,000 | 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 | 3,005,000 | 3,454,000 | 3,861,000 | 4,015,000 |
| Return on total capital | 18.41% | 16.90% | 17.13% | 19.61% | 18.26% | 19.77% | 24.22% | 22.34% | 21.51% | 19.60% | 13.87% | 3.30% | 4.13% | -14.08% | -39.50% | -54.54% | -57.60% | -25.97% | 2.12% | 17.96% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $805,000K ÷ ($—K + $4,372,000K)
= 18.41%
Alaska Air Group Inc's return on total capital has exhibited significant fluctuations over the reported periods. The ratio declined sharply from 17.96% as of March 31, 2020, to -57.60% by the end of December 31, 2020, indicating a substantial decline in the company's ability to generate returns on its total invested capital.
The negative trend continued through the first half of 2021, with return on total capital ranging from -54.54% to -39.50%. However, there was a notable improvement in the latter half of 2021 and early 2022, as the ratio turned positive, with values increasing steadily to reach 24.22% as of June 30, 2023. This positive trend continued through the end of 2024, with the ratio stabilizing around the range of 16.90% to 24.22%.
Overall, there seems to have been a recovery in Alaska Air Group Inc's efficiency in utilizing its total capital to generate returns, as indicated by the improving trend in the return on total capital ratio from negative values to positive figures and the sustained positive performance from 2022 onwards.
Peer comparison
Dec 31, 2024