SkyWest Inc (SKYW)

Return on equity (ROE)

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Net income (ttm)	US$ in thousands	322,962	243,101	176,870	116,711	34,342	-30,278	-5,384	33,148	72,953	124,389	85,701	93,744	111,910	79,909	103,887	16,178	10,266	163,240	220,917	334,684
Total stockholders’ equity	US$ in thousands	2,408,780	2,311,500	2,231,180	2,164,900	2,113,500	2,136,700	2,157,240	2,232,060	2,347,630	2,395,950	2,345,030	2,289,720	2,267,510	2,261,810	2,248,900	2,181,520	2,139,540	2,185,100	2,142,960	2,163,440
ROE		13.41%	10.52%	7.93%	5.39%	1.62%	-1.42%	-0.25%	1.49%	3.11%	5.19%	3.65%	4.09%	4.94%	3.53%	4.62%	0.74%	0.48%	7.47%	10.31%	15.47%

December 31, 2024 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $322,962K ÷ $2,408,780K
= 13.41%

Return on equity (ROE) is a key financial ratio that measures a company's profitability by evaluating how effectively it generates profit from the shareholders' equity invested in the business.

Analyzing the ROE trend of SkyWest Inc from March 2020 to December 2024 reveals fluctuations in the company's profitability performance.

The ROE started at a relatively high level of 15.47% in March 2020, indicating efficient utilization of equity to generate profits. However, there was a significant decline in ROE by the end of 2020, dropping to 0.48%. This sharp decrease suggests a potential decline in profitability relative to equity investments.

The trend continued to fluctuate over the subsequent quarters, with ROE ranging from negative figures to single-digit percentages. Notably, there was a gradual improvement in ROE from March 2023 onwards, eventually reaching a peak of 13.41% in December 2024.

Overall, the analysis of ROE for SkyWest Inc indicates a period of volatility in profitability performance, with fluctuations in the company's ability to generate returns on shareholders' equity investments. The recent upward trend in ROE could suggest improved profitability and efficiency in utilizing equity for generating profits. It is advisable to monitor future ROE trends to assess the company's ongoing financial performance and profitability.