Alaska Air Group Inc (ALK)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 394,000 | 385,000 | 236,000 | 86,000 | 70,000 | 86,000 | 282,000 | 662,000 | 723,000 | 89,000 | -740,000 | -1,581,000 | -1,744,000 | -888,000 | 117,000 | 762,000 | 1,094,000 | 889,000 | 761,000 | 674,000 |
| Long-term debt | US$ in thousands | 2,182,000 | 2,128,000 | 1,889,000 | 1,795,000 | 1,883,000 | 1,889,000 | 1,961,000 | 2,078,000 | 2,173,000 | 2,225,000 | 2,319,000 | 2,325,000 | 2,357,000 | — | — | — | 1,264,000 | 1,444,000 | 1,538,000 | 1,664,000 |
| 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 |
| Return on total capital | 6.26% | 6.19% | 4.04% | 1.57% | 1.23% | 1.50% | 4.90% | 11.58% | 12.10% | 1.55% | -13.11% | -30.40% | -32.63% | -25.71% | 3.03% | 18.98% | 19.55% | 15.61% | 13.81% | 12.46% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $394,000K ÷ ($2,182,000K + $4,113,000K)
= 6.26%
Alaska Air Group Inc.'s return on total capital has shown a positive trend over the past eight quarters. The company's return on total capital increased steadily from 8.03% in Q2 2022 to 13.18% in Q2 2023, indicating improving efficiency in generating returns from its total capital employed. This upward trend signifies that the company has been utilizing its capital more effectively to generate profits for its shareholders.
The return on total capital peaked at 13.18% in Q2 2023, reflecting the company's ability to generate a return of $0.13 for every dollar of total capital invested. This indicates that Alaska Air Group Inc. has been efficient in managing its overall capital structure to generate profits.
Overall, the consistent improvement in the return on total capital shows positive performance and efficient capital allocation by Alaska Air Group Inc. over the analyzed quarters, which can be a positive indicator of the company's financial health and operational efficiency.
Peer comparison
Dec 31, 2023