Alaska Air Group (FRA:ALK) ROCE % : -5.93% (As of Mar. 2024)

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What is Alaska Air Group ROCE %?

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Alaska Air Group's annualized ROCE % for the quarter that ended in Mar. 2024 was -5.93%.

Alaska Air Group ROCE % Historical Data

The historical data trend for Alaska Air Group's ROCE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Alaska Air Group ROCE % Chart

Alaska Air Group Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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12.28

-17.12

7.84

1.82

4.14

Alaska Air Group Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
ROCE %	Get a 7-Day Free Trial															-7.40	14.41	8.98	1.13	-5.93

Alaska Air Group ROCE % Calculation

Alaska Air Group's annualized ROCE % for the fiscal year that ended in Dec. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	382.389	/	( ( (13391.584 - 4241.392)	+	(13400.121 - 4088.903) )	/ 2 )
	=	382.389	/	( (9150.192	+	9311.218)	/ 2 )
	=	382.389	/	9230.705
	=	4.14 %

Alaska Air Group's ROCE % of for the quarter that ended in Mar. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Mar. 2024 )		(Q: Dec. 2023 )		(Q: Mar. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Mar. 2024 )		(Q: Dec. 2023 )		(Q: Mar. 2024 )
	=	-548.32	/	( ( (13400.121 - 4088.903)	+	(13627.96 - 4442.68) )	/ 2 )
	=	-548.32	/	( ( 9311.218	+	9185.28 )	/ 2 )
	=	-548.32	/	9248.249
	=	-5.93 %

(1) Note: The EBIT data used here is four times the quarterly (Mar. 2024) EBIT data.

Alaska Air Group (FRA:ALK) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Alaska Air Group ROCE % Related Terms

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Alaska Air Group (FRA:ALK) Business Description

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GURUFOCUS.COM » STOCK LIST » Industrials » Transportation » Alaska Air Group Inc (FRA:ALK) » Definitions » ROCE %

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ALK:USA

Address

19300 International Boulevard, Seattle, WA, USA, 98188

Website

https://www.alaskaair.com

Alaska Air Group Inc operates two airlines, Alaska and Horizon in three operating segments. The Mainline segment includes scheduled air transportation on Alaska's Boeing and Airbus jet aircraft for passengers and cargo throughout the U.S., and in parts of Mexico, and Costa Rica. The Regional segment includes Horizon's and other third-party carriers' scheduled air transportation for passengers across a shorter distance network within the U.S. and Canada under capacity purchase agreements (CPA). The Horizon segment includes the capacity sold to Alaska under a CPA. It earns revenues from Passenger tickets, including ticket breakage and net of taxes and fees, Passenger ancillary and Mileage Plan passenger revenue.