Balance Sheet: Liabilities and Stockholders’ Equity

The balance sheet provides creditors, investors, and analysts with information on company resources (assets) and its sources of capital (its equity and liabilities). It normally also provides information about the future earnings capacity of a company assets as well as an indication of cash flows that may come from receivables and inventories.

Liabilities represents obligations of a company arising from past events, the settlement of which is expected to result in an outflow of economic benefits from the entity.

American Airlines Group Inc., consolidated balance sheet: liabilities and stockholders’ equity

US$ in millions

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Current maturities of long-term debt and finance leases	3,632)	3,274)	2,489)	2,797)	2,861)
Accounts payable	2,353)	2,149)	1,772)	1,196)	2,062)
Accrued salaries and wages	2,377)	1,713)	1,489)	1,716)	1,541)
Air traffic liability	6,200)	6,745)	6,087)	4,757)	4,808)
Loyalty program liability	3,453)	3,169)	2,896)	2,033)	3,193)
Current operating lease liabilities	1,309)	1,465)	1,507)	1,651)	1,708)
Other accrued liabilities	2,738)	2,981)	2,766)	2,419)	2,138)
Current liabilities	22,062)	21,496)	19,006)	16,569)	18,311)
Long-term debt and finance leases, net of current maturities	29,270)	32,389)	35,571)	29,796)	21,454)
Pension and postretirement benefits	3,044)	2,837)	5,053)	7,069)	6,052)
Loyalty program liability	5,874)	5,976)	6,239)	7,162)	5,422)
Noncurrent operating lease liabilities	6,452)	6,559)	6,610)	6,777)	7,421)
Other liabilities	1,558)	1,258)	1,328)	1,502)	1,453)
Noncurrent liabilities	46,198)	49,019)	54,801)	52,306)	41,802)
Total liabilities	68,260)	70,515)	73,807)	68,875)	60,113)
Common stock, $0.01 par value	7)	6)	6)	6)	4)
Additional paid-in capital	7,374)	7,291)	7,234)	6,894)	3,945)
Accumulated other comprehensive loss	(4,894)	(4,585)	(5,942)	(7,103)	(6,331)
Retained earnings (deficit)	(7,689)	(8,511)	(8,638)	(6,664)	2,264)
Stockholders’ deficit	(5,202)	(5,799)	(7,340)	(6,867)	(118)
Total liabilities and stockholders’ deficit	63,058)	64,716)	66,467)	62,008)	59,995)

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

The financial data reveals several notable trends in the liabilities and equity structure over the five-year period ending December 31, 2023.

Current Liabilities: Current liabilities demonstrate a fluctuating but generally increasing trend, rising from 18,311 million US dollars in 2019 to 22,062 million US dollars in 2023. Specific line items such as current maturities of long-term debt and finance leases increased from 2,861 million in 2019 to 3,632 million in 2023, indicating a growing short-term debt obligation. Accounts payable and accrued salaries and wages also showed an upward movement, with accrued salaries and wages markedly rising from 1,541 million to 2,377 million, suggesting increased wage obligations possibly due to operational scale or workforce changes. Air traffic liability, representing customer deposits for future services, peaked in 2022 before slightly declining in 2023, maintaining a high level compared to the starting period.
Noncurrent Liabilities: Noncurrent liabilities peaked in 2021 at 54,801 million but then decreased steadily to 46,198 million by 2023. This decline was notably influenced by the reduction in long-term debt and finance leases from a high of 35,571 million in 2021 down to 29,270 million in 2023. Pension and postretirement benefits liabilities decreased notably from 7,069 million in 2020 to 3,044 million in 2023, which may reflect pension plan funding or changes in actuarial assumptions. Loyalty program liabilities show a peak in 2020 but then steadily decline through 2023, which could suggest adjustments in related revenue recognition or program structure. Noncurrent operating lease liabilities showed a modest declining trend, consistent with possible lease terminations or reclassifications.
Total Liabilities: Total liabilities increased from 60,113 million in 2019 to a peak of 73,807 million in 2021, then decreased to 68,260 million by 2023. This volatility reflects the company's management of both short-term and long-term obligations during the period, possibly influenced by external economic conditions and strategic financing decisions.
Stockholders’ Equity and Deficit: The stockholders’ equity position reveals ongoing challenges, with a deficit evident throughout the period. Retained earnings show a deficit from 2020 onwards, deepening to -8,638 million in 2021 and slightly improving to -7,689 million in 2023. Accumulated other comprehensive loss narrowed over time from -7,103 million in 2020 to -4,894 million in 2023, indicating some recovery in unrealized losses or other comprehensive income elements. Total stockholders’ deficit peaked at -7,340 million in 2021 and improved to -5,202 million by 2023, reflecting a partial recovery but still signaling negative equity overall. Additional paid-in capital increased steadily, which may indicate equity injections, while common stock values remained relatively stable and marginally increased.
Summary: The overall financial structure reveals an entity managing significant liabilities with efforts to reduce long-term debt and pension-related obligations post-2021. However, the persistence of stockholders’ deficit and negative retained earnings highlights ongoing equity challenges. Current liabilities are increasing, particularly in wage accruals and short-term debt maturities, which may impact liquidity considerations. A declining trend in certain long-term liabilities and a reduction in total liabilities after 2021 suggest active financial management possibly aimed at deleveraging. Continuation of these trends will be important to monitor for financial stability and operational capacity.

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American Airlines Group Inc. (NASDAQ:AAL)

Balance Sheet: Liabilities and Stockholders’ Equity