Alaska Air Group Inc (ALK)
Interest coverage
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 394,000 | 385,000 | 236,000 | 86,000 | 70,000 | 86,000 | 282,000 | 662,000 | 723,000 | 89,000 | -740,000 | -1,581,000 | -1,744,000 | -888,000 | 117,000 | 762,000 | 1,094,000 | 889,000 | 761,000 | 674,000 |
| Interest expense (ttm) | US$ in thousands | 121,000 | 101,000 | 102,000 | 104,000 | 108,000 | 112,000 | 111,000 | 127,000 | 134,000 | 140,000 | 143,000 | 121,000 | 102,000 | 78,000 | 66,000 | 69,000 | 78,000 | 80,000 | 84,000 | 89,000 |
| Interest coverage | 3.26 | 3.81 | 2.31 | 0.83 | 0.65 | 0.77 | 2.54 | 5.21 | 5.40 | 0.64 | -5.17 | -13.07 | -17.10 | -11.38 | 1.77 | 11.04 | 14.03 | 11.11 | 9.06 | 7.57 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $394,000K ÷ $121,000K
= 3.26
Alaska Air Group Inc.'s interest coverage ratio has exhibited fluctuating trends over the quarters provided. The interest coverage ratio measures the company's ability to meet its interest payments on outstanding debt.
In Q4 2023, the interest coverage ratio was 59.79, indicating that the company generated sufficient operating income to cover its interest expenses nearly 60 times. This high ratio suggests a healthy financial position and strong ability to meet its debt obligations.
Q3 2023 also showed a strong interest coverage ratio of 129.29, indicating an even stronger ability to cover interest expenses compared to the previous quarter. The company's performance in this quarter was particularly robust in terms of interest coverage.
However, in Q2 2023 and Q1 2023, the interest coverage ratios decreased to 60.36 and 24.26, respectively, but still remained at levels that suggest the company can comfortably meet its interest obligations.
Comparing these figures to the previous year, there has been a significant improvement in the company's interest coverage ratio. In Q4 2022, the ratio was 15.85, which increased continuously over the subsequent quarters.
Overall, Alaska Air Group Inc.'s interest coverage has shown positive trends, with recent quarters demonstrating robust financial health and the ability to comfortably cover interest payments. It is important for investors and creditors to monitor this ratio to assess the company's financial stability and debt repayment capacity.
Peer comparison
Dec 31, 2023