Alaska Air Group Inc (ALK)
Debt-to-capital ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Debt-to-capital ratio | 0.35 | 0.34 | 0.32 | 0.33 | 0.33 | 0.33 | 0.34 | 0.36 | 0.36 | 0.39 | 0.41 | 0.45 | 0.44 | 0.00 | 0.00 | 0.00 | 0.23 | 0.25 | 0.28 | 0.31 |
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
Alaska Air Group Inc.'s debt-to-capital ratio has shown some fluctuation over the past eight quarters. It ranged from 0.36 to 0.41 during this period. Generally, the trend indicates that the company has been able to maintain a relatively stable level of debt relative to its total capital structure. However, the slight variation in the ratio suggests potential changes in the company's capital structure or debt management strategies over time.
The company's debt-to-capital ratio is below 0.5 for all periods, indicating that Alaska Air Group has a conservative approach to financing its operations. A ratio below 0.5 typically suggests that the company relies more on equity financing rather than debt to fund its operations and growth initiatives. This lower level of debt relative to capital can be seen as a positive indicator of financial stability and lower financial risk.
Overall, the debt-to-capital ratio analysis suggests that Alaska Air Group Inc. has maintained a prudent balance between debt and equity in its capital structure, which may have contributed to its financial stability and strength over the analyzed period.
Peer comparison
Dec 31, 2023