ALKNEUTRAL

ALK Debt-to-Equity Ratio Analysis

1.79x

Higher than 89% of Industrials sector peers

Updated 1659h ago·SEC filings & market data

Key Takeaway

Alaska Air Group's debt-to-equity ratio of 1.79x means the company uses $1.79 of debt for every $1.00 of shareholder equity, indicating a higher reliance on borrowed funds to finance operations.

Sector Performance

89th percentile

ALK

1.79x

Sector Median

0.72x

Sector Avg

0.79x

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Deep Analysis

Alaska Air Group's debt-to-equity ratio of 1.79x means the company uses $1.79 of debt for every $1.00 of shareholder equity, indicating a higher reliance on borrowed funds to finance operations.

This level sits well above the sector median of 0.63x for Industrials, placing the company in the 83rd percentile among its peers — meaning only 17% of comparable firms carry more debt relative to equity. No year-over-year or quarter-over-quarter changes are available, and there is no trend data for the last eight quarters, so the metric shows a single snapshot without movement. The combination of an elevated debt load and no observable trend suggests heightened financial risk compared to the sector average, but the absence of change makes it unclear whether leverage is increasing or declining. This elevated ratio contradicts a fully bullish stance and adds caution, but it does not alone overturn the overall NEUTRAL verdict — the high leverage is a risk factor that balances against other potential strengths.

Frequently Asked Questions

What does the Debt-to-Equity Ratio tell investors about ALK?

Shows how much a company is financing its operations through debt vs shareholder funds. High D/E can amplify returns — and losses.

How is the Debt-to-Equity Ratio calculated?

Debt-to-Equity Ratio is calculated as: Total Debt / Shareholders' Equity.

How does ALK's Debt-to-Equity Ratio compare to its sector?

ALK's Debt-to-Equity Ratio of 1.79x compares to a Industrials sector median of 0.72x, placing it in the 89th percentile.

Who are ALK's closest peers by Debt-to-Equity Ratio?

The closest Industrials peers by Debt-to-Equity Ratio include: PWR (0.65x), CHRW (0.79x), ADP (0.63x), ROP (0.56x), CARR (0.90x).

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Learn More About Debt-to-Equity Ratio

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Debt/Equity Ratio: How Much Debt Is Too Much?

The debt to equity ratio explained: why context, interest coverage, and sector norms matter far more than the raw number when assessing debt risk.

The Formula

Total Debt / Shareholders' Equity

Why It Matters

Shows how much a company is financing its operations through debt vs shareholder funds. High D/E can amplify returns — and losses.