Alaska Air Group Inc (ALK)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 19,768,000 | 15,834,000 | 14,281,000 | 13,951,000 | 14,046,000 |
| Total stockholders’ equity | US$ in thousands | 4,372,000 | 4,113,000 | 3,816,000 | 3,801,000 | 3,005,000 |
| Financial leverage ratio | 4.52 | 3.85 | 3.74 | 3.67 | 4.67 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $19,768,000K ÷ $4,372,000K
= 4.52
The financial leverage ratio of Alaska Air Group Inc has shown a decreasing trend over the past five years. It decreased from 4.67 in December 2020 to 3.67 in December 2021, indicating a reduction in the company's reliance on debt to finance its assets. However, there was a slight increase in the ratio to 3.74 in December 2022, followed by further increases to 3.85 in December 2023 and 4.52 in December 2024.
These fluctuations in the financial leverage ratio suggest that the company may have adjusted its capital structure during this period, potentially taking on more debt relative to equity in more recent years. It is crucial for stakeholders to monitor this ratio closely to assess the company's risk profile and financial stability, as higher leverage ratios generally indicate higher financial risk.
Peer comparison
Dec 31, 2024