SkyWest Inc (SKYW)

Operating return on assets (Operating ROA)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Operating income	US$ in thousands	494,657	104,069	181,162	275,867	108,802
Total assets	US$ in thousands	7,139,870	7,026,290	7,414,550	7,125,950	6,887,620
Operating ROA		6.93%	1.48%	2.44%	3.87%	1.58%

December 31, 2024 calculation

Operating ROA = Operating income ÷ Total assets
= $494,657K ÷ $7,139,870K
= 6.93%

Operating ROA is a key metric used to evaluate how efficiently a company generates profits from its assets. Looking at the trend for SkyWest Inc over the past five years, we see fluctuations in its operating ROA.

- For the fiscal year ending December 31, 2020, the operating ROA was 1.58%. This indicates that for every dollar of assets employed, SkyWest Inc generated a return of 1.58 cents in operating income.
- The operating ROA showed improvement in the following year, reaching 3.87% by December 31, 2021. This significant increase suggests that SkyWest Inc became more efficient in utilizing its assets to generate operating income.
- However, the operating ROA dipped to 2.44% by December 31, 2022, indicating a slight decline in asset efficiency compared to the previous year.
- By December 31, 2023, the operating ROA decreased further to 1.48%, signifying a decrease in the company's ability to generate operating income relative to its asset base.
- The most recent data point, December 31, 2024, shows a substantial improvement in operating ROA to 6.93%, reflecting a strong performance in effectively utilizing its assets to generate operating profits.

Overall, the trend in SkyWest Inc's operating ROA reveals fluctuations in asset efficiency over the past five years, with notable improvements in some years and declines in others. Monitoring this metric can provide insights into the company's operational performance and efficiency in generating returns from its asset base.