SkyWest Inc (SKYW)

Operating return on assets (Operating ROA)

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Operating income (ttm)	US$ in thousands	104,069	41,383	67,668	124,410	181,162	249,178	220,652	247,073	275,867	215,246	242,749	123,323	108,802	261,776	333,664	482,160	512,258	475,128	455,365	449,197
Total assets	US$ in thousands	7,026,290	7,059,120	7,115,770	7,233,760	7,414,550	7,454,200	7,336,650	7,148,960	7,125,950	6,940,500	6,991,760	6,894,680	6,887,620	6,758,590	6,773,380	6,661,410	6,657,130	6,597,660	6,580,020	6,544,530
Operating ROA		1.48%	0.59%	0.95%	1.72%	2.44%	3.34%	3.01%	3.46%	3.87%	3.10%	3.47%	1.79%	1.58%	3.87%	4.93%	7.24%	7.69%	7.20%	6.92%	6.86%

December 31, 2023 calculation

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

To analyze Skywest Inc.'s operating return on assets (operating ROA), we consider the fluctuations in the operating ROA across the quarters provided in the table. The operating ROA is a key profitability ratio that indicates the company's efficiency in generating profits from its operating assets.

The data shows a declining trend in Skywest Inc.'s operating ROA from Q1 2022 to Q4 2023. The company experienced a gradual decrease in operating ROA from 2.59% in Q2 2022 to 1.48% in Q4 2023.

The peak operating ROA of 3.34% in Q3 2022 indicates a period of relatively higher profitability compared to subsequent quarters. However, the consistent decline in operating ROA over time raises concerns about the company's ability to generate sufficient operating profits from its assets.

The decline in operating ROA could be attributed to various factors such as increased operating expenses, lower revenue generation from assets, or inefficient asset utilization. Skywest Inc. may need to evaluate its operational efficiency and make strategic adjustments to improve its profitability in the future quarters.

Overall, the decreasing trend in Skywest Inc.'s operating ROA suggests a need for the company to focus on optimizing its asset utilization and operational performance to enhance profitability and shareholder value in the long term.