SkyWest Inc (SKYW)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 59.88% | 54.17% | 54.99% | 60.57% | -43.95% |
| Operating profit margin | 13.63% | 3.60% | 6.11% | 10.40% | 5.35% |
| Pretax margin | 11.91% | 1.39% | 3.12% | 5.68% | -0.36% |
| Net profit margin | 8.90% | 1.19% | 2.46% | 4.22% | -0.42% |
SkyWest Inc's profitability ratios have shown significant improvement over the years. The gross profit margin increased from -43.95% in December 2020 to 59.88% in December 2024, indicating a consistent positive trend in the company's ability to generate profits after accounting for the cost of goods sold.
Similarly, the operating profit margin has shown an upward trajectory, starting at 5.35% in December 2020 and reaching 13.63% by December 2024. This demonstrates the company's efficiency in controlling operating expenses to generate profits from its core business operations.
The pretax margin also followed a positive trend, increasing from -0.36% in December 2020 to 11.91% in December 2024. This indicates that SkyWest Inc has been effectively managing its pre-tax income relative to its total revenue over the years.
Lastly, the net profit margin, reflecting the company's overall profitability, improved significantly from -0.42% in December 2020 to 8.90% in December 2024. This suggests that SkyWest Inc has been able to increase its bottom line profit relative to its total revenue, showcasing its improved financial performance and potential for growth.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 6.93% | 1.48% | 2.44% | 3.87% | 1.58% |
| Return on assets (ROA) | 4.52% | 0.49% | 0.98% | 1.57% | -0.12% |
| Return on total capital | 10.88% | 2.23% | 3.43% | 5.53% | 2.20% |
| Return on equity (ROE) | 13.41% | 1.62% | 3.11% | 4.94% | -0.40% |
SkyWest Inc's profitability ratios show an improvement over the years based on the provided data.
- The Operating Return on Assets (Operating ROA) increased from 1.58% in 2020 to 6.93% in 2024, indicating the company's ability to generate operating income relative to its total assets. The peak in 2024 suggests that management efficiently utilized assets to generate profits.
- The Return on Assets (ROA) also displayed an upward trend, starting from a negative figure in 2020 to 4.52% in 2024. This indicates that the company's profitability relative to its total assets improved significantly during the period, reflecting better overall performance.
- The Return on Total Capital increased from 2.20% in 2020 to 10.88% in 2024, demonstrating the higher return generated by the company on its total capital employed. This suggests effective capital utilization and increased profitability for shareholders and investors.
- The Return on Equity (ROE) showed a steady improvement from -0.40% in 2020 to 13.41% in 2024, reflecting a positive change in the company's ability to generate profits from shareholders' equity. The rising trend indicates the company's enhanced performance in generating returns for its equity holders.
Overall, SkyWest Inc's profitability ratios depict a positive trajectory, with increasing returns, improved efficiency in asset utilization, and enhanced profitability for both investors and shareholders over the years.