SkyWest Inc (SKYW)

Operating return on assets (Operating ROA)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Operating income	US$ in thousands	104,069	181,162	275,867	108,802	512,258
Total assets	US$ in thousands	7,026,290	7,414,550	7,125,950	6,887,620	6,657,130
Operating ROA		1.48%	2.44%	3.87%	1.58%	7.69%

December 31, 2023 calculation

Operating ROA = Operating income ÷ Total assets
= $104,069K ÷ $7,026,290K
= 1.48%

The operating return on assets (operating ROA) of Skywest Inc. has shown variability over the past five years. In 2023, the operating ROA was 1.48%, a decrease from the previous year's 2.44%. This decline may indicate lower operational efficiency in generating profits from its assets in the most recent year.

Looking back further, in 2021, Skywest Inc. had a negative operating ROA of -0.87%, suggesting that the company was not effectively utilizing its assets to generate operating income. The situation worsened in 2020, with a significantly lower operating ROA of -3.44%, indicating a greater inefficiency in asset utilization that year.

However, in 2019, Skywest Inc. demonstrated a strong performance with an operating ROA of 8.02%, reflecting efficient operations and a high return generated from its assets.

Overall, the trend in Skywest Inc.'s operating ROA suggests fluctuations in the company's ability to generate operating income from its assets over the past five years. It is important for the company to focus on improving operational efficiency to maintain and enhance financial performance in the future.