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ALK (Alaska Air Group) Piotroski F-Score : 5 (As of Dec. 14, 2024)


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What is Alaska Air Group Piotroski F-Score?

The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Alaska Air Group has an F-score of 5 indicating the company's financial situation is typical for a stable company.

The historical rank and industry rank for Alaska Air Group's Piotroski F-Score or its related term are showing as below:

ALK' s Piotroski F-Score Range Over the Past 10 Years
Min: 2   Med: 6   Max: 9
Current: 5

During the past 13 years, the highest Piotroski F-Score of Alaska Air Group was 9. The lowest was 2. And the median was 6.


Alaska Air Group Piotroski F-Score Historical Data

The historical data trend for Alaska Air Group's Piotroski F-Score 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.

* Premium members only.

Alaska Air Group Piotroski F-Score Chart

Alaska Air Group Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Piotroski F-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 7.00 3.00 8.00 6.00 7.00

Alaska Air Group Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Piotroski F-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 7.00 7.00 8.00 7.00 5.00

Competitive Comparison of Alaska Air Group's Piotroski F-Score

For the Airlines subindustry, Alaska Air Group's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Alaska Air Group's Piotroski F-Score Distribution in the Transportation Industry

For the Transportation industry and Industrials sector, Alaska Air Group's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where Alaska Air Group's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* 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.

This Year (Sep24) TTM:Last Year (Sep23) TTM:
Net Income was -2 + -132 + 220 + 236 = $322 Mil.
Cash Flow from Operations was -53 + 292 + 580 + 318 = $1,137 Mil.
Revenue was 2553 + 2232 + 2897 + 3072 = $10,754 Mil.
Gross Profit was 326 + 150 + 738 + 699 = $1,913 Mil.
Average Total Assets from the begining of this year (Sep23)
to the end of this year (Sep24) was
(15165 + 14613 + 14813 + 15342 + 19559) / 5 = $15898.4 Mil.
Total Assets at the begining of this year (Sep23) was $15,165 Mil.
Long-Term Debt & Capital Lease Obligation was $5,408 Mil.
Total Current Assets was $3,737 Mil.
Total Current Liabilities was $6,248 Mil.
Net Income was 22 + -142 + 240 + 139 = $259 Mil.

Revenue was 2479 + 2196 + 2838 + 2839 = $10,352 Mil.
Gross Profit was 395 + 121 + 786 + 636 = $1,938 Mil.
Average Total Assets from the begining of last year (Sep22)
to the end of last year (Sep23) was
(14531 + 14186 + 14296 + 14829 + 15165) / 5 = $14601.4 Mil.
Total Assets at the begining of last year (Sep22) was $14,531 Mil.
Long-Term Debt & Capital Lease Obligation was $3,241 Mil.
Total Current Assets was $3,644 Mil.
Total Current Liabilities was $5,074 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Alaska Air Group's current Net Income (TTM) was 322. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Alaska Air Group's current Cash Flow from Operations (TTM) was 1,137. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Sep23)
=322/15165
=0.0212331

ROA (Last Year)=Net Income/Total Assets (Sep22)
=259/14531
=0.01782396

Alaska Air Group's return on assets of this year was 0.0212331. Alaska Air Group's return on assets of last year was 0.01782396. ==> This year is higher. ==> Score 1.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

Alaska Air Group's current Net Income (TTM) was 322. Alaska Air Group's current Cash Flow from Operations (TTM) was 1,137. ==> 1,137 > 322 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Sep24)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Sep23 to Sep24
=5408/15898.4
=0.34016002

Gearing (Last Year: Sep23)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Sep22 to Sep23
=3241/14601.4
=0.22196502

Alaska Air Group's gearing of this year was 0.34016002. Alaska Air Group's gearing of last year was 0.22196502. ==> Last year is lower than this year ==> Score 0.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

Current Ratio (This Year: Sep24)=Total Current Assets/Total Current Liabilities
=3737/6248
=0.5981114

Current Ratio (Last Year: Sep23)=Total Current Assets/Total Current Liabilities
=3644/5074
=0.71817107

Alaska Air Group's current ratio of this year was 0.5981114. Alaska Air Group's current ratio of last year was 0.71817107. ==> Last year's current ratio is higher ==> Score 0.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

Alaska Air Group's number of shares in issue this year was 128.59. Alaska Air Group's number of shares in issue last year was 129.188. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=1913/10754
=0.1778873

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=1938/10352
=0.1872102

Alaska Air Group's gross margin of this year was 0.1778873. Alaska Air Group's gross margin of last year was 0.1872102. ==> Last year's gross margin is higher ==> Score 0.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Sep23)
=10754/15165
=0.70913287

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Sep22)
=10352/14531
=0.71240796

Alaska Air Group's asset turnover of this year was 0.70913287. Alaska Air Group's asset turnover of last year was 0.71240796. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+1+1+0+0+1+0+0
=5

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Alaska Air Group has an F-score of 5 indicating the company's financial situation is typical for a stable company.

Alaska Air Group  (NYSE:ALK) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


Alaska Air Group Piotroski F-Score Related Terms

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Alaska Air Group Business Description

Traded in Other Exchanges
Address
1930 International Boulevard, Seattle, WA, USA, 98188
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.
Executives
Andrew R Harrison officer: VP/PLNG & REV MGMT C/O ALASKA AIR GROUP, INC., 19300 INTERNATIONAL BLVD, SEATTLE WA 98188
Benito Minicucci officer: EXEC VP/OPS AND COO C/O ALASKA AIRLINES, INC., 19300 INTERNATIONAL BLVD SO, SEATTLE WA 98188
Jason M Berry officer: President, Horizon Air C/O ALASKA AIR GROUP, INC., 19300 INTERNATIONAL BLVD., SEATTLE WA 98188
J Kenneth Thompson director ALASKA AIR GROUP, 19300 PACIFIC HIGHWAY SOUTH, SEATTLE WA 98188
Andrea L Schneider officer: VP PEOPLE ALASKA AIR GROUP, INC., 19300 INTERNATIONAL BLVD, SEATTLE WA 98188
Shane R Tackett officer: SR VP REV/E-COMMERCE C/O ALASKA AIRLINES, INC., 19300 INTERNATIONAL BLVD, SEATTLE WA 98188
Dhiren R. Fonseca director C/O NORTHWEST RETAIL PARTNERS, LTD., 224 WESTLAKE AVE N, SUITE 500, SEATTLE WA 98109
Adrienne Rochelle Lofton director C/O ALASKA AIR GROUP, INC., 19300 INTERNATIONAL BLVD, SEATTLE WA 98188
Daniel Kevin Elwell director C/O ALASKA AIR GROUP, INC., 19300 INTERNATIONAL BLVD, SEATTLE WA 98188
Knight Jessie J Jr director 4329 FOX BROOK LANE, CHARLOTTE NC 28211
Susan J Li director ALASKA AIR GROUP, INC., 19300 INTERNATIONAL BLVD, SEATTLE WA 98188
Helvi Kay Sandvik director C/O ALASKA AIR GROUP, INC., 19300 INTERNATIONAL BLVD, SEATTLE WA 98188
James A Beer director MCKESSON CORPORATION, ONE POST STREET, SAN FRANCISCO CA 94104
Raymond L. Conner director ALASKA AIR GROUP, INC., 19300 INTERNATIONAL BLVD, SEATTLE WA 98188
Kathleen T Hogan director C/O MICROSOFT CORPORATION, ONE MICROSOFT WAY, REDMOND WA 98052-6399