Stock Analysis on Net

American Airlines Group Inc. (NASDAQ:AAL)

DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin 

Microsoft Excel

Two-Component Disaggregation of ROE

American Airlines Group Inc., decomposition of ROE

Microsoft Excel
ROE = ROA × Financial Leverage
Dec 31, 2021 = -3.00% ×
Dec 31, 2020 = -14.33% ×
Dec 31, 2019 = 2.81% ×
Dec 31, 2018 = 2.33% ×
Dec 31, 2017 48.88% = 3.73% × 13.09

Based on: 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).


Three-Component Disaggregation of ROE

American Airlines Group Inc., decomposition of ROE

Microsoft Excel
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Dec 31, 2021 = -6.67% × 0.45 ×
Dec 31, 2020 = -51.25% × 0.28 ×
Dec 31, 2019 = 3.68% × 0.76 ×
Dec 31, 2018 = 3.17% × 0.74 ×
Dec 31, 2017 48.88% = 4.55% × 0.82 × 13.09

Based on: 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).


Five-Component Disaggregation of ROE

American Airlines Group Inc., decomposition of ROE

Microsoft Excel
ROE = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover × Financial Leverage
Dec 31, 2021 = × × -2.50% × 0.45 ×
Dec 31, 2020 = × × -58.98% × 0.28 ×
Dec 31, 2019 = 0.75 × 0.67 × 7.32% × 0.76 ×
Dec 31, 2018 = 0.75 × 0.64 × 6.60% × 0.74 ×
Dec 31, 2017 48.88% = 0.62 × 0.75 × 9.80% × 0.82 × 13.09

Based on: 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).


Two-Component Disaggregation of ROA

American Airlines Group Inc., decomposition of ROA

Microsoft Excel
ROA = Net Profit Margin × Asset Turnover
Dec 31, 2021 -3.00% = -6.67% × 0.45
Dec 31, 2020 -14.33% = -51.25% × 0.28
Dec 31, 2019 2.81% = 3.68% × 0.76
Dec 31, 2018 2.33% = 3.17% × 0.74
Dec 31, 2017 3.73% = 4.55% × 0.82

Based on: 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).


Four-Component Disaggregation of ROA

American Airlines Group Inc., decomposition of ROA

Microsoft Excel
ROA = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover
Dec 31, 2021 -3.00% = × × -2.50% × 0.45
Dec 31, 2020 -14.33% = × × -58.98% × 0.28
Dec 31, 2019 2.81% = 0.75 × 0.67 × 7.32% × 0.76
Dec 31, 2018 2.33% = 0.75 × 0.64 × 6.60% × 0.74
Dec 31, 2017 3.73% = 0.62 × 0.75 × 9.80% × 0.82

Based on: 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).


Disaggregation of Net Profit Margin

American Airlines Group Inc., decomposition of net profit margin ratio

Microsoft Excel
Net Profit Margin = Tax Burden × Interest Burden × EBIT Margin
Dec 31, 2021 -6.67% = × × -2.50%
Dec 31, 2020 -51.25% = × × -58.98%
Dec 31, 2019 3.68% = 0.75 × 0.67 × 7.32%
Dec 31, 2018 3.17% = 0.75 × 0.64 × 6.60%
Dec 31, 2017 4.55% = 0.62 × 0.75 × 9.80%

Based on: 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).