SkyWest Inc (SKYW)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	2,113,500	2,347,630	2,267,510	2,139,540	2,175,010
ROE		1.62%	3.11%	4.94%	-0.40%	15.64%

December 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $34,342K ÷ $2,113,500K
= 1.62%

Skywest Inc.'s return on equity (ROE) has fluctuated over the past five years. In 2019, the ROE was at its highest, reaching 15.64%, indicating that the company was generating significant returns for its shareholders. However, there has been a downward trend in ROE since then. In 2020, the ROE turned negative at -0.40%, suggesting that the company experienced losses that year.

Although there was a partial recovery in 2021 with an ROE of 4.94%, the returns remain relatively low compared to previous years. In 2022 and 2023, the ROE continued to decline to 3.11% and 1.62% respectively, indicating a decreasing profitability trend.

The declining ROE over the past few years may suggest that Skywest Inc. is facing challenges in effectively utilizing shareholder equity to generate profits. This trend warrants a closer examination of the company's financial performance and strategies to improve profitability and ultimately enhance shareholder value.