Q: Let's take a closer look at Alaska Airlines. I've attached the financial statements dated 12-31-20, at the end of their fiscal year. What has happened to their liquidity and profitability?

Please explain liquidity and profitability/how to read it in these statements?

CONSOLIDATED BALANCE SHEETS 2020 2019 As of December 31 (in millions) ASSETS Current Assets Cash and cash equivalents Marketable securities Total cash and marketable securities Receivables - net Inventories and supplies - net Prepaid expenses and other current assets Total Current Assets 1,370 $ 1,976 3,346 480 57 123 4,006 221 1,300 1,521 323 72 121 2,037 Property and Equipment Aircraft and other flight equipment Other property and equipment Deposits for future flight equipment Less accumulated depreciation and amortization Total Property and Equipment - Net 7,761 1,398 583 9,742 3,531 6,211 8,549 1,306 533 10,388 3,486 6,902 Other Assets Operating lease assets Goodwill Intangible assets - net Other noncurrent assets Total Other Assets 1,400 1,943 107 379 3,829 1,711 1,943 122 278 4,054 Total Assets 14,046 $ 12,993 2020 2019 CONSOLIDATED BALANCE SHEETS (continued) As of December 31 (in millions except share amounts) LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities Accounts payable Accrued wages, vacation and payroll taxes Air traffic liability Other accrued liabilities Deferred revenue Current portion of operating lease liabilities Current portion of long-term debt Total Current Liabilities 108 S 527 1,073 424 733 290 1,138 4,293 146 470 900 431 750 269 235 3,201 Long-Term Debt, Net of Current Portion 2,357 1,264 Other Liabilities and Credits Long-term operating lease liabilities, net of current portion Deferred income taxes Deferred revenue Obligation for pension and postretirement medical benefits Other liabilities Total Other Liabilities and Credits 1,268 407 1,544 665 524 4,408 1,439 715 1,240 571 232 4,197 Commitments and Contingencies (Note 10) - Shareholders' Equity Preferred stock, $0.01 par value, Authorized: 5,000,000 shares, none issued or outstanding Common stock, $0.01 par value, Authorized: 400,000,000 shares, Issued: 2020 - 133,567,534 shares: 2019- 131,812,173 shares, Outstanding: 2020 - 124,217,590 shares; 2019 - 123,000,307 shares Capital in excess of par value Treasury stock (common), at cost: 2020 - 9,349,944 shares; 2019 - 8,811,866 shares Accumulated other comprehensive loss Retained earnings 1 391 (674) (494) 3,764 2,988 14,046 $ 305 (643) (465) 5,133 4,331 12,993 Total Liabilities and Shareholders' Equity S 2019 2018 CONSOLIDATED STATEMENTS OF OPERATIONS Year Ended December 31 (in millions, except per-share amounts) 2020 Operating Revenues Passenger revenue 3,019 $ Mileage Plan other revenue 374 Cargo and other 173 Total Operating Revenues 3,566 8,095 $ 465 221 8,781 7,631 434 199 8,264 2.370 2,190 Operating Expenses Wages and benefits Payroll support program grant wage offset Variable incentive pay Aircraft fuel, including hedging gains and losses Aircraft maintenance Aircraft rent Landing fees and other rentals Contracted services Selling expense Depreciation and amortization Food and beverage service Third-party regional carrier expense Other Special items - merger-related costs Special items - impairment charges and other Special items - restructuring charges Special items - other Total Operating Expenses Operating Income (Loss) 2,053 (782) 130 723 321 299 417 181 101 420 90 128 407 6 627 220 163 1,878 437 331 531 289 313 423 214 147 1,936 435 315 499 306 326 398 211 154 572 87 166 559 44 5,341 (1,775) 7,718 1,063 45 7,621 643 42 (78) 38 (91) 18 15 Non-operating Income (Expense) Interest income Interest expense Interest capitalized Special charges - net non-operating Other - net Total Non-operating Expense Income (Loss) Before Income Tax Income tax (benefit) expense Net Income (Loss) Basic Earnings (Loss) Per Share Diluted Earnings (Loss) Per Share Shares used for computation: Basic Diluted 31 (98) 11 (26) 17 (65) (1,840) (516) (1,324) S (26) (47) 1,016 247 769 S (23) (58) 585 148 437 S (10.72) $ (10.72) $ 6.24 S 6.19 $ 3.55 3.52 123.450 123.450 123.279 124.289 123.230 123.975