SkyWest Inc (SKYW)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 54.17% | 54.99% | 60.57% | -43.95% | -19.01% |
| Operating profit margin | 3.60% | 6.11% | 10.40% | 5.35% | 17.24% |
| Pretax margin | 1.39% | 3.12% | 5.68% | -0.36% | 15.02% |
| Net profit margin | 1.19% | 2.46% | 4.22% | -0.42% | 11.44% |
Skywest Inc. has shown consistent gross profit margins of 100% over the past five years, indicating effective cost management in generating revenue. However, there are notable fluctuations in profitability ratios further down the income statement.
The operating profit margin has varied, with a significant drop in 2020 to -11.13% but rebounded in 2022 to 6.03%. This suggests fluctuations in operating expenses and efficiencies in generating operating income.
The pretax margin also shows inconsistency, although generally positive, with a notable drop in 2020 to -0.34% followed by recovery in the following years. This indicates fluctuating performance in generating profits before taxes.
Furthermore, the net profit margin has also been inconsistent, with a negative figure in 2020, rebounding to positive levels in the subsequent years. The improvements in 2021, 2022, and 2023 suggest efficient management of taxes and other costs to generate net income.
In conclusion, Skywest Inc. has maintained a strong gross profit margin but has experienced fluctuations in operating, pretax, and net profit margins, signaling varying levels of operational efficiency and profitability over the past five years.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 1.48% | 2.44% | 3.87% | 1.58% | 7.69% |
| Return on assets (ROA) | 0.49% | 0.98% | 1.57% | -0.12% | 5.11% |
| Return on total capital | 2.23% | 3.43% | 5.53% | 2.20% | 10.66% |
| Return on equity (ROE) | 1.62% | 3.11% | 4.94% | -0.40% | 15.64% |
Skywest Inc.'s profitability ratios over the past five years show fluctuations in performance. The Operating Return on Assets (Operating ROA) has declined from 8.02% in 2019 to 1.48% in 2023, indicating a decrease in profitability generated from its operating assets. This decline may be attributed to changes in operating efficiency or asset utilization.
The Return on Assets (ROA) also demonstrates inconsistency, with a negative figure of -0.12% in 2020, reflecting a period of unprofitability, followed by a gradual improvement to 0.49% in 2023. This measure indicates the company's ability to generate profits from its total assets, with recent years showing a mixed performance in asset profitability.
The Return on Total Capital highlights a similar trend, with a notable decrease from 10.34% in 2019 to 2.03% in 2023. This ratio considers the return generated from the total invested capital, including both debt and equity. The declining trend suggests that the company may be facing challenges in generating returns on its total capital employed.
Lastly, the Return on Equity (ROE) has also shown variability, decreasing from 15.64% in 2019 to 1.62% in 2023. ROE measures the return generated for the shareholders' equity investment, indicating the profitability from the shareholders' perspective. The decreasing trend in ROE implies that the company's ability to generate profits for its equity holders has weakened over the years.
Overall, the analysis of Skywest Inc.'s profitability ratios highlights a mixed performance, with fluctuations in profitability indicators over the past five years. The company may need to focus on operational efficiency, asset utilization, and capital allocation strategies to improve its profitability and enhance shareholder value.