ALK (Alaska Air Group) Interest Coverage : 11.22 (As of Sep. 2024)

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What is Alaska Air Group Interest Coverage?

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Alaska Air Group's Operating Income for the three months ended in Sep. 2024 was $415 Mil. Alaska Air Group's Interest Expense for the three months ended in Sep. 2024 was $-37 Mil. Alaska Air Group's interest coverage for the quarter that ended in Sep. 2024 was 11.22. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Alaska Air Group's Interest Coverage or its related term are showing as below:

ALK' s Interest Coverage Range Over the Past 10 Years
Min: 5.76 Med: 15.4 Max: 166.25
Current: 6.78

ALK's Interest Coverage is ranked better than
54.21% of 819 companies
in the Transportation industry
Industry Median: 5.82 vs ALK: 6.78

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Alaska Air Group Interest Coverage Historical Data

The historical data trend for Alaska Air Group's Interest Coverage 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.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

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Alaska Air Group Interest Coverage Chart

Alaska Air Group Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

Get a 7-Day Free Trial

17.57

5.76

6.91

8.90

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
Interest Coverage	Get a 7-Day Free Trial															13.59	2.76	-	15.60	11.22

Competitive Comparison of Alaska Air Group's Interest Coverage

For the Airlines subindustry, Alaska Air Group's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage Distribution in the Transportation Industry

For the Transportation industry and Industrials sector, Alaska Air Group's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Alaska Air Group's Interest Coverage falls into.

Alaska Air Group Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage

-1

Operating Income

Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt ⁽¹⁾.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Alaska Air Group's Interest Coverage for the fiscal year that ended in Dec. 2023 is calculated as

Here, for the fiscal year that ended in Dec. 2023, Alaska Air Group's Interest Expense was $-94 Mil. Its Operating Income was $837 Mil. And its Long-Term Debt & Capital Lease Obligation was $3,307 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	837	/	-94
	=	8.90

Alaska Air Group's Interest Coverage for the quarter that ended in Sep. 2024 is calculated as

Here, for the three months ended in Sep. 2024, Alaska Air Group's Interest Expense was $-37 Mil. Its Operating Income was $415 Mil. And its Long-Term Debt & Capital Lease Obligation was $5,408 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Sep. 2024 )	/	Interest Expense (Q: Sep. 2024 )
	=	-1	*	415	/	-37
	=	11.22

The higher the ratio, the stronger the company's Financial Strength is.

Alaska Air Group (NYSE:ALK) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

Alaska Air Group Interest Coverage Related Terms

Thank you for viewing the detailed overview of Alaska Air Group's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.

Alaska Air Group Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Transportation » Alaska Air Group Inc (NYSE:ALK) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

0HC3:UK ALK:Germany ALK:Germany A1LK34:Brazil

Address

1930 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.

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