Earnings Analysis for ALK Last 3 Years

Revenue Analysis

Revenue metrics indicate a mixed performance over the period. In the most recent quarter (2024-03-31), ALK reported Total Revenue of $2,232,000,000 and an Operating Revenue of $2,004,000,000 with a Gross Profit of $150,000,000. Comparatively, in the earlier quarters of 2023-09-30 and 2023-06-30, the company shows higher Total Revenues of $2,839,000,000 and $2,838,000,000 respectively, and correspondingly higher Operating Revenues. The Gross Profit has seen a considerable fluctuation, with $636,000,000 and $786,000,000 reported. This suggests volatility in ALK’s revenue streams and profit generation capabilities over the analyzed period.

Cost Management

The Cost of Revenue and Operating Expenses have shown a moderate trend. For 2024-03-31, the Cost of Revenue stood at $2,082,000,000 with Total Expenses amounting to $2,364,000,000. This pattern aligns with previous quarters, although there is a marginal decrease from the earlier quarters in 2023, hinting at some level of cost management improvement. However, Operating Expenses have roughly maintained, illustrating sustained overhead costs in the company’s operations.

Profitability Analysis

EBITDA and Operating Income metrics for the quarters indicate fluctuations. As of the latest quarter of 2024-03-31, EBITDA is at a negative -$23,000,000 with Operating Income at -$132,000,000. Previous quarters have shown better profitability, particularly in 2023-06-30, with an EBITDA of $459,000,000 and Operating Income at $523,000,000. Pretax Income and Net Income have followed this trend, with the latest reports showing negative values, reflecting a challenging fiscal environment for ALK.

Cash Flow Indicators

The Reconciled Depreciation and Interest Expense metrics are critical for understanding ALK’s cash flows. Depreciation has remained significant, indicating substantial investment in assets, which ranges between $104,000,000 and $126,000,000 across the periods. Interest Expense has varied, affecting the company’s finance costs and thus its cash flow.

Taxation

The varying Tax Rates and Provisions across the quarters reflect the impacts of different operational performances and fiscal responsibilities. The Tax Effects of Unusual Items also suggest significant non-recurring events impacting tax calculations, which need to be considered for a comprehensive fiscal analysis.

Shareholder Metrics

The Diluted and Basic EPS values have shown considerable variation, ranging from -1.11 to 1.88, indicating volatile profitability affecting shareholders’ value perception. Average Shares outstanding have remained stable, showcasing consistency in the company’s equity structure. Net Income Available to Common Stockholders parallels the Net Income trend, which has been significantly mixed over the period.

Conclusion

Overall, ALK’s financial performance over the last three years presents a mixed landscape with moments of high profitability countered by significant downturns. The variability in Gross Profits alongside fluctuating operational costs and net incomes suggests a challenging operating environment. Strategic improvements in revenue generation and cost management may be required to stabilize and potentially enhance financial performance.