Stock Analysis on Net

American Airlines Group Inc. (NASDAQ:AAL)

This company has been moved to the archive! The financial data has not been updated since February 21, 2024.

Return on Capital (ROC)

Microsoft Excel

Return on capital (ROC) is after tax rate of return on net business assets. ROIC is unaffected by changes in interest rates or company debt and equity structure. It measures business productivity performance.


Return on Invested Capital (ROIC)

American Airlines Group Inc., ROIC calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Net operating profit after taxes (NOPAT)1 2,815 2,040 (736) (10,143) 3,350
Invested capital2 30,476 30,859 29,074 31,408 35,495
Performance Ratio
ROIC3 9.24% 6.61% -2.53% -32.29% 9.44%
Benchmarks
ROIC, Competitors4
FedEx Corp. 7.80% 7.54% 11.15% 4.40% 2.29%
Uber Technologies Inc. 15.33% -55.79% -5.09% -31.45% -40.29%
Union Pacific Corp. 12.28% 13.87% 13.09% 11.40% 12.88%
United Parcel Service Inc. 16.77% 28.42% 34.07% 3.42% 14.07%

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).

1 NOPAT. See details »

2 Invested capital. See details »

3 2023 Calculation
ROIC = 100 × NOPAT ÷ Invested capital
= 100 × 2,815 ÷ 30,476 = 9.24%

4 Click competitor name to see calculations.

Performance ratio Description The company
ROIC A measure of the periodic, after tax, cash-on-cash yield earned in the business. American Airlines Group Inc. ROIC improved from 2021 to 2022 and from 2022 to 2023.

Decomposition of ROIC

American Airlines Group Inc., decomposition of ROIC

Microsoft Excel
ROIC = OPM1 × TO2 × 1 – CTR3
Dec 31, 2023 9.24% = 6.18% × 1.73 × 86.21%
Dec 31, 2022 6.61% = 5.16% × 1.59 × 80.78%
Dec 31, 2021 -2.53% = -0.85% × 1.03 × 100.00%
Dec 31, 2020 -32.29% = -56.50% × 0.55 × 100.00%
Dec 31, 2019 9.44% = 7.98% × 1.29 × 91.70%

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).

1 Operating profit margin (OPM). See calculations »

2 Turnover of capital (TO). See calculations »

3 Effective cash tax rate (CTR). See calculations »

The primary reason for the increase in return on invested capital (ROIC) over 2023 year is the increase in profitability measured by operating profit margin (OPM) ratio.


Operating Profit Margin (OPM)

American Airlines Group Inc., OPM calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Net operating profit after taxes (NOPAT)1 2,815 2,040 (736) (10,143) 3,350
Add: Cash operating taxes2 450 485 482 348 303
Net operating profit before taxes (NOPBT) 3,265 2,526 (255) (9,795) 3,653
 
Operating revenues 52,788 48,971 29,882 17,337 45,768
Profitability Ratio
OPM3 6.18% 5.16% -0.85% -56.50% 7.98%
Benchmarks
OPM, Competitors4
FedEx Corp. 7.32% 6.41% 9.60% 4.03% 2.35%
Uber Technologies Inc. 7.09% -27.42% -2.86% -57.75% -56.69%
Union Pacific Corp. 39.71% 41.70% 44.40% 41.95% 40.84%
United Parcel Service Inc. 10.43% 15.59% 17.83% 3.14% 8.61%

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).

1 NOPAT. See details »

2 Cash operating taxes. See details »

3 2023 Calculation
OPM = 100 × NOPBT ÷ Operating revenues
= 100 × 3,265 ÷ 52,788 = 6.18%

4 Click competitor name to see calculations.

Profitability ratio Description The company
OPM The operating profit margin (OPM) is the ratio of pretax economic earnings, or NOPBT, to sales. American Airlines Group Inc. OPM improved from 2021 to 2022 and from 2022 to 2023.

Turnover of Capital (TO)

American Airlines Group Inc., TO calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Operating revenues 52,788 48,971 29,882 17,337 45,768
Invested capital1 30,476 30,859 29,074 31,408 35,495
Efficiency Ratio
TO2 1.73 1.59 1.03 0.55 1.29
Benchmarks
TO, Competitors3
FedEx Corp. 1.30 1.41 1.31 1.20 1.31
Uber Technologies Inc. 2.38 1.95 1.09 0.53 0.69
Union Pacific Corp. 0.39 0.42 0.37 0.33 0.38
United Parcel Service Inc. 2.00 2.24 2.19 2.55 2.04

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).

1 Invested capital. See details »

2 2023 Calculation
TO = Operating revenues ÷ Invested capital
= 52,788 ÷ 30,476 = 1.73

3 Click competitor name to see calculations.

Efficiency ratio Description The company
TO The turnover of capital (TO) is the ratio of sales to invested capital. Capital turnover is a function of the efficiency of working capital management and of net fixed assets. American Airlines Group Inc. TO improved from 2021 to 2022 and from 2022 to 2023.

Effective Cash Tax Rate (CTR)

American Airlines Group Inc., CTR calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Net operating profit after taxes (NOPAT)1 2,815 2,040 (736) (10,143) 3,350
Add: Cash operating taxes2 450 485 482 348 303
Net operating profit before taxes (NOPBT) 3,265 2,526 (255) (9,795) 3,653
Tax Rate
CTR3 13.79% 19.22% 8.30%
Benchmarks
CTR, Competitors4
FedEx Corp. 17.83% 16.39% 11.08% 9.29% 25.81%
Uber Technologies Inc. 9.17%
Union Pacific Corp. 21.09% 20.10% 21.23% 18.83% 16.88%
United Parcel Service Inc. 19.63% 18.63% 12.80% 57.24% 19.83%

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).

1 NOPAT. See details »

2 Cash operating taxes. See details »

3 2023 Calculation
CTR = 100 × Cash operating taxes ÷ NOPBT
= 100 × 450 ÷ 3,265 = 13.79%

4 Click competitor name to see calculations.