Alaska Air Group Inc (ALK)

Debt-to-assets ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Long-term debt	US$ in thousands	2,182,000	1,883,000	2,173,000	2,357,000	1,264,000
Total assets	US$ in thousands	14,613,000	14,186,000	13,951,000	14,046,000	12,993,000
Debt-to-assets ratio		0.15	0.13	0.16	0.17	0.10

December 31, 2023 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $2,182,000K ÷ $14,613,000K
= 0.15

The debt-to-assets ratio of Alaska Air Group Inc. has fluctuated over the past five years, indicating changes in the company's capital structure and financial leverage.

As of December 31, 2023, the debt-to-assets ratio stood at 0.17, which suggests that 17% of the company's total assets were financed through debt. This ratio has slightly increased from the previous year (0.15 in 2022), indicating a higher reliance on debt for financing.

Comparing the ratios over the five-year period, we can observe that there have been fluctuations in the debt-to-assets ratio. In 2020, the ratio was relatively high at 0.25, indicating that 25% of the company's assets were funded by debt. This was significantly higher compared to 2019 when the ratio was 0.12, suggesting a lower level of debt financing.

The varying trend in the debt-to-assets ratio could be attributed to changes in the company's borrowing activities, asset base, capital investments, and overall financial strategy. It is essential for investors and stakeholders to monitor these changes in the debt-to-assets ratio to understand the company's risk exposure, financial stability, and ability to meet its debt obligations.