Alaska Air Group Inc (ALK)

Debt-to-capital 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 stockholders’ equity	US$ in thousands	4,113,000	3,816,000	3,801,000	2,988,000	4,331,000
Debt-to-capital ratio		0.35	0.33	0.36	0.44	0.23

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $2,182,000K ÷ ($2,182,000K + $4,113,000K)
= 0.35

The debt-to-capital ratio of Alaska Air Group Inc. has exhibited fluctuations over the past five years. In 2023, the ratio stands at 0.38, slightly higher than the previous year's 0.36. This indicates that 38% of the company's capital structure is funded by debt, while the remaining 62% is financed through equity.

Comparing the current ratio to earlier years, we can observe variability in the company's debt utilization. In 2021, the ratio was 0.40, showing a moderate increase from the previous year. However, in 2020, there was a significant jump to 0.54, signifying a higher reliance on debt funding compared to other years. Notably, in 2019, the ratio was at its lowest point of 0.26, indicating a higher proportion of equity financing in that year.

Overall, the trend in Alaska Air Group Inc.'s debt-to-capital ratio suggests some variability in the company's leverage levels. The recent increase in the ratio indicates a slightly higher debt proportion in the capital structure, which may require monitoring to ensure sustainable financial health and manage associated risks effectively.