Alaska Air Group Inc (ALK)
Solvency ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 4.52 | 4.37 | 3.63 | 3.72 | 3.85 | 3.71 | 3.75 | 3.88 | 3.74 | 3.80 | 3.90 | 3.91 | 3.67 | 3.93 | 4.41 | 4.96 | 4.67 | 4.27 | 3.63 | 3.33 |
Alaska Air Group Inc's solvency ratios indicate a very low level of debt relative to its assets and capital structure. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio have consistently remained at 0.00 throughout the reported periods, suggesting that the company has no significant financial obligations relative to its asset base.
The Financial leverage ratio, which indicates the proportion of a company's assets that are financed through debt, shows a fluctuating trend but generally remains within a moderate range over the quarters. The ratio peaked at 4.96 in March 31, 2021, and has since decreased to 3.63 by June 30, 2024, indicating a declining reliance on debt financing and a more balanced capital structure.
Overall, Alaska Air Group Inc's solvency ratios reflect a conservative approach to debt management and a healthy financial position with a strong ability to meet its financial obligations.
Coverage ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 5.67 | 5.96 | 6.19 | 7.22 | 7.51 | 9.30 | 10.88 | 9.16 | 8.73 | 7.43 | 5.27 | 1.06 | 1.34 | -4.04 | -10.42 | -14.79 | -19.90 | -12.81 | 1.52 | 13.11 |
Alaska Air Group Inc's interest coverage ratio experienced significant fluctuations over the analyzed period. Initially, the company had a healthy interest coverage ratio of 13.11 in March 2020, indicating it could comfortably meet its interest obligations. However, by September 2020, the ratio turned negative, suggesting that the company was not generating enough operating income to cover its interest expenses.
The negative trend continued through March 2021, with the interest coverage ratio remaining below zero. This raised concerns about the company's financial health and its ability to service its debt. However, starting from December 2021, Alaska Air Group Inc showed signs of improvement as its interest coverage ratio turned positive again, indicating that it was generating sufficient earnings to cover its interest payments.
The positive trend continued through the following quarters, reaching a peak of 10.88 in June 2023. This increase in the interest coverage ratio suggested a stronger financial position for the company and a reduced risk of default on its debt obligations.
Although there were minor fluctuations in the interest coverage ratio in the subsequent quarters, Alaska Air Group Inc maintained a generally stable and healthy interest coverage ratio above 5, indicating a comfortable ability to meet its interest payments.
Overall, Alaska Air Group Inc's interest coverage ratio improved significantly from the negative territory to a more stable and healthy level over the analyzed period, reflecting a better financial performance and reduced financial risk for the company.