ALKNEUTRAL

ALK Return on Equity (ROE) Analysis

2.4%

Higher than 32% of Industrials sector peers

Updated 2508h ago·SEC filings & market data

Key Takeaway

Return on Equity (ROE) measures how much profit a company generates for each dollar of shareholder equity.

Sector Performance

32th percentile

ALK

2.4%

Sector Median

14.6%

Sector Avg

-40.6%

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Deep Analysis

Return on Equity (ROE) measures how much profit a company generates for each dollar of shareholder equity.

Alaska Air Group’s current ROE of 2.4% means it earns only $0.024 per dollar of equity, well below the Industrials sector median of 10.8% and placing it in the 30th percentile among peers. The trend is not available: year-over-year and quarter-over-quarter changes are both marked as N/A, with only a single historical value of 2.4% reported over the last eight quarters. The combination of a low ROE level with no trend data suggests the company has limited profitability relative to equity, creating a moderate risk that it may struggle to generate attractive returns for shareholders. However, the absence of a downward trend means there is no immediate signal of worsening performance. This metric supports the overall NEUTRAL verdict because the low ROE is a clear weakness, yet the lack of trend information prevents a bullish or bearish conclusion.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about ALK?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

How does ALK's Return on Equity (ROE) compare to its sector?

ALK's Return on Equity (ROE) of 2.4% compares to a Industrials sector median of 14.6%, placing it in the 32th percentile.

Who are ALK's closest peers by Return on Equity (ROE)?

The closest Industrials peers by Return on Equity (ROE) include: AME (13.9%), PWR (15.3%), ROP (13.1%), XPO (19.9%), BLDR (2.5%).

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Learn More About Return on Equity (ROE)

What Is Return on Equity (ROE) and Is Higher Always Better?

Return on equity ROE measures how efficiently a company generates profit from shareholder capital. Learn how to decompose ROE using DuPont analysis and why high leverage can make it dangerous—with Apple and JPMorgan examples.

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.