SkyWest Inc (SKYW)

Return on equity (ROE)

		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
Net income (ttm)	US$ in thousands	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	392,877	389,074	380,781	368,588
Total stockholders’ equity	US$ in thousands	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	2,175,010	2,116,260	2,052,240	2,000,570
ROE		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%	18.06%	18.38%	18.55%	18.42%

December 31, 2023 calculation

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

The return on equity (ROE) for Skywest Inc. has shown a declining trend over the past eight quarters, starting at 4.09% in Q1 2022 and dropping to -1.42% in Q3 2023. This indicates that the company's ability to generate profit from shareholders' equity has weakened over the period analyzed. Although there was a slight improvement in Q4 2023 to 1.62%, it remains significantly lower compared to previous quarters. The negative ROE in Q3 2023 suggests that the company's net income was insufficient to cover the shareholders' equity, raising concerns about profitability and efficient capital utilization. Further analysis of the company's financial performance and operational efficiency is warranted to identify the underlying factors influencing the declining ROE trend.