SkyWest Inc (SKYW)

Return on assets (ROA)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	34,342	72,953	111,910	-8,515	340,099
Total assets	US$ in thousands	7,026,290	7,414,550	7,125,950	6,887,620	6,657,130
ROA		0.49%	0.98%	1.57%	-0.12%	5.11%

December 31, 2023 calculation

ROA = Net income ÷ Total assets
= $34,342K ÷ $7,026,290K
= 0.49%

The return on assets (ROA) for Skywest Inc. has shown fluctuating performance over the past five years. In 2019, the ROA stood at a relatively high 5.11%, indicating that the company generated $5.11 in profit for every $100 of assets it owned. However, this figure dropped drastically to -0.12% in 2020, suggesting that the company experienced losses in that year in relation to its asset base.

The performance improved in 2021 with an ROA of 1.57%, indicating a recovery in profitability relative to its assets. This positive trend continued into 2022 with an ROA of 0.98%, although it was lower compared to the previous year. Notably, in 2023, the ROA further decreased to 0.49%, signifying a decline in profitability relative to the company's asset base.

Overall, the downward trend in ROA from 2019 to 2023 raises concerns about Skywest Inc.'s ability to efficiently utilize its assets to generate profits. Further analysis of the company's financial health and operational efficiency is recommended to address these fluctuations in ROA.