Alaska Air Group Inc (ALK)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 4.52 | 3.85 | 3.74 | 3.67 | 4.67 |
Based on the provided solvency ratios of Alaska Air Group Inc, we observe the following trends:
1. Debt-to-assets ratio: The company has maintained a consistently low debt-to-assets ratio of 0.00 over the years 2020 to 2024. This indicates that Alaska Air Group has not relied heavily on debt financing in relation to its total assets and is well-positioned in terms of solvency.
2. Debt-to-capital ratio: Similar to the debt-to-assets ratio, Alaska Air Group has also maintained a consistent debt-to-capital ratio of 0.00 from 2020 to 2024. This indicates that the company has not extensively used debt to fund its operations relative to its total capital structure.
3. Debt-to-equity ratio: The debt-to-equity ratio for Alaska Air Group has also been stable at 0.00 across the years 2020 to 2024. This signifies that the company's reliance on debt in comparison to its equity position remains negligible, reflecting a strong financial position in terms of solvency.
4. Financial leverage ratio: The financial leverage ratio, which measures the extent of a company's financial leverage, decreased from 4.67 in 2020 to 3.67 in 2021, and then gradually increased to 4.52 in 2024. Despite this increase, the ratio remains at a manageable level, indicating Alaska Air Group's ability to support its operations through an appropriate mix of debt and equity without excessive financial risk.
Overall, the solvency ratios of Alaska Air Group Inc demonstrate a prudent and conservative approach to managing its debt levels and capital structure, contributing to the company's financial stability and solvency over the years.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 4.84 | 6.76 | 8.32 | -2.20 | -20.15 |
The interest coverage ratio reflects Alaska Air Group Inc's ability to cover its interest expenses with its operating income. The trend in the interest coverage ratio from 2020 to 2024 shows fluctuations:
- In December 2020, the interest coverage ratio was -20.15, which indicates that the company's operating income was insufficient to cover its interest expenses, posing a high financial risk.
- By December 2021, the interest coverage ratio improved to -2.20 but remained below 1, suggesting continued financial strain.
- The ratio notably improved in the following years, reaching 8.32 by December 2022 and 6.76 by December 2023, indicating the company's operating income was more comfortably covering its interest expenses.
- However, by December 2024, the interest coverage ratio decreased to 4.84, still at a satisfactory level but showing a slight decline in the company's ability to cover its interest payments.
Overall, Alaska Air Group Inc's interest coverage ratio has shown a mix of improvement and fluctuations over the years, with the latest result indicating reasonable coverage of interest expenses, although monitoring the trend is advised to ensure sustained financial health.