Alaska Air Group Inc (ALK)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.15 | 0.14 | 0.13 | 0.13 | 0.13 | 0.13 | 0.13 | 0.15 | 0.16 | 0.16 | 0.16 | 0.16 | 0.17 | 0.00 | 0.00 | 0.00 | 0.10 | 0.11 | 0.12 | 0.13 |
| 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 |
| Debt-to-equity ratio | 0.53 | 0.52 | 0.48 | 0.49 | 0.49 | 0.49 | 0.52 | 0.57 | 0.57 | 0.63 | 0.70 | 0.81 | 0.79 | 0.00 | 0.00 | 0.00 | 0.29 | 0.34 | 0.39 | 0.44 |
| Financial leverage ratio | 3.55 | 3.71 | 3.75 | 3.88 | 3.72 | 3.80 | 3.90 | 3.91 | 3.67 | 3.93 | 4.41 | 4.96 | 4.70 | 4.27 | 3.63 | 3.33 | 3.00 | 3.05 | 3.26 | 3.37 |
The solvency ratios of Alaska Air Group Inc. provide insights into the company's ability to meet its long-term financial obligations.
1. Debt-to-assets ratio: This ratio indicates the proportion of the company's assets financed by debt. Alaska Air Group's debt-to-assets ratio has been relatively stable over the past eight quarters, ranging from 0.14 to 0.19. A lower ratio indicates lower financial risk and greater asset coverage by equity.
2. Debt-to-capital ratio: This ratio reveals the percentage of the company's capital structure that is financed by debt. The trend for Alaska Air Group's debt-to-capital ratio has fluctuated between 0.36 and 0.41. A lower ratio signifies a higher proportion of equity financing compared to debt.
3. Debt-to-equity ratio: This ratio reflects the relationship between the company's debt and equity financing. Alaska Air Group's debt-to-equity ratio has varied between 0.56 and 0.70. A lower ratio is typically preferred by investors as it suggests that the company relies less on debt for its capital needs.
4. Financial leverage ratio: This ratio measures the extent to which the company uses debt to finance its assets. Alaska Air Group's financial leverage ratio ranges from 3.55 to 3.91, indicating moderate leverage levels across the quarters. A lower ratio indicates lower financial risk stemming from excessive debt.
Overall, Alaska Air Group Inc. has maintained stable solvency ratios over the past eight quarters, with manageable levels of debt relative to its assets, capital, equity, and overall financial leverage. Investors and analysts may view these metrics favorably as they suggest a balanced capital structure and prudent financial management practices.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
Interest coverage is a crucial financial ratio that indicates a company's ability to meet its interest obligations using its earnings before interest and taxes (EBIT). A higher interest coverage ratio suggests a company is more capable of servicing its debt.
Analyzing the data for Alaska Air Group Inc., we can observe a significant improvement in interest coverage over the quarters. In Q1 2022, the interest coverage ratio was the lowest at 2.00, indicating a relatively weaker ability to cover interest expenses. However, there has been a consistent upward trend in the subsequent quarters, with Q4 2023 reporting the highest interest coverage ratio of 59.79.
The notable increase in the interest coverage ratio reflects the company's enhanced capacity to cover its interest expenses from its operating earnings. Alaska Air Group Inc. has shown a steady improvement in its financial health and ability to meet its interest obligations, which is a positive sign for investors and creditors.
Overall, the improving trend in interest coverage ratios for Alaska Air Group Inc. indicates a strengthening financial position and suggests a reduced risk of default on interest payments in the future.