Return on Equity (ROE)
since 2013
Calculation
American Airlines Group Inc., ROE, long-term trends, calculation
| ROE | = | 100 | × | Net income (loss)1 | ÷ | Stockholders’ equity (deficit)1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2023 | — | = | 100 | × | 822) | ÷ | (5,202) |
| Dec 31, 2022 | — | = | 100 | × | 127) | ÷ | (5,799) |
| Dec 31, 2021 | — | = | 100 | × | (1,993) | ÷ | (7,340) |
| Dec 31, 2020 | — | = | 100 | × | (8,885) | ÷ | (6,867) |
| Dec 31, 2019 | — | = | 100 | × | 1,686) | ÷ | (118) |
| Dec 31, 2018 | — | = | 100 | × | 1,412) | ÷ | (169) |
| Dec 31, 2017 | 48.88% | = | 100 | × | 1,919) | ÷ | 3,926) |
| Dec 31, 2016 | 70.70% | = | 100 | × | 2,676) | ÷ | 3,785) |
| Dec 31, 2015 | 135.05% | = | 100 | × | 7,610) | ÷ | 5,635) |
| Dec 31, 2014 | 142.60% | = | 100 | × | 2,882) | ÷ | 2,021) |
| Dec 31, 2013 | — | = | 100 | × | (1,834) | ÷ | (2,731) |
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), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31).
1 US$ in millions
The financial performance over the period from 2013 to 2023 is characterized by extreme volatility in net income and a recurring pattern of stockholders' equity deficits. While the company experienced a period of substantial profitability and equity growth between 2014 and 2017, subsequent years show a deterioration of the balance sheet and a struggle to maintain positive equity, despite a recent return to net profitability.
- Net Income Trends
- Net income exhibits significant fluctuations, moving from a loss of US$ 1,834 million in 2013 to a peak profit of US$ 7,610 million in 2015. A steady decline in profitability followed through 2019, preceding a severe contraction in 2020 with a net loss of US$ 8,885 million. Recovery began in 2022, with net income returning to positive territory at US$ 127 million and increasing to US$ 822 million by 2023.
- Stockholders' Equity Position
- The equity structure shifted from a deficit in 2013 to a positive position between 2014 and 2017, peaking at US$ 5,635 million in 2015. However, a reversal occurred in 2018, leading to a persistent stockholders' deficit. This deficit deepened significantly in 2020, reaching US$ 6,867 million, and although it has narrowed slightly to US$ 5,202 million by 2023, the company remains in a negative equity position.
- Return on Equity (ROE) Interpretation
- During the years when equity was positive (2014–2017), ROE was exceptionally high, starting at 142.60% in 2014 and trending downward to 48.88% by 2017. The absence of ROE figures from 2018 onward coincides with the transition to a negative stockholders' equity balance, rendering the standard ROE calculation mathematically distorted or non-applicable for traditional analysis.
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Comparison to Competitors
American Airlines Group Inc., ROE, long-term trends, comparison to competitors
| American Airlines Group Inc. | FedEx Corp. | Uber Technologies Inc. | Union Pacific Corp. | United Airlines Holdings Inc. | United Parcel Service Inc. | |
|---|---|---|---|---|---|---|
| Dec 31, 2023 | — | 15.23% | 16.77% | 43.14% | 28.08% | 38.76% |
| Dec 31, 2022 | — | 15.34% | -124.54% | 57.54% | 10.69% | 58.36% |
| Dec 31, 2021 | — | 21.64% | -3.43% | 46.06% | -39.05% | 90.44% |
| Dec 31, 2020 | — | 7.03% | -55.18% | 31.54% | -118.61% | 204.41% |
| Dec 31, 2019 | — | 3.04% | -59.94% | 32.65% | 26.09% | 135.90% |
| Dec 31, 2018 | — | 23.55% | — | 29.21% | 21.30% | 158.59% |
| Dec 31, 2017 | 48.88% | 18.65% | — | 43.10% | 24.20% | 491.00% |
| Dec 31, 2016 | 70.70% | 13.20% | — | 21.24% | 26.13% | 847.16% |
| Dec 31, 2015 | 135.05% | 7.00% | — | 23.05% | 81.86% | 196.11% |
| Dec 31, 2014 | 142.60% | 13.73% | — | 24.45% | 47.25% | 141.62% |
| Dec 31, 2013 | — | 8.97% | — | 20.67% | 19.14% | 67.53% |
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), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31).
Comparison to Sector (Transportation)
American Airlines Group Inc., ROE, long-term trends, comparison to sector (transportation)
| American Airlines Group Inc. | Transportation | |
|---|---|---|
| Dec 31, 2023 | — | 27.38% |
| Dec 31, 2022 | — | 19.64% |
| Dec 31, 2021 | — | 30.78% |
| Dec 31, 2020 | — | -10.82% |
| Dec 31, 2019 | — | 8.33% |
| Dec 31, 2018 | — | 33.03% |
| Dec 31, 2017 | 48.88% | 40.90% |
| Dec 31, 2016 | 70.70% | 27.46% |
| Dec 31, 2015 | 135.05% | 38.20% |
| Dec 31, 2014 | 142.60% | 27.90% |
| Dec 31, 2013 | — | 22.65% |
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), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31).
Comparison to Industry (Industrials)
American Airlines Group Inc., ROE, long-term trends, comparison to industry (industrials)
| American Airlines Group Inc. | Industrials | |
|---|---|---|
| Dec 31, 2023 | — | 27.70% |
| Dec 31, 2022 | — | 15.38% |
| Dec 31, 2021 | — | 15.38% |
| Dec 31, 2020 | — | 0.24% |
| Dec 31, 2019 | — | 14.56% |
| Dec 31, 2018 | — | 17.95% |
| Dec 31, 2017 | 48.88% | 18.24% |
| Dec 31, 2016 | 70.70% | 21.69% |
| Dec 31, 2015 | 135.05% | 16.11% |
| Dec 31, 2014 | 142.60% | 19.68% |
| Dec 31, 2013 | — | 16.40% |
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), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31).