Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
American Airlines Group Inc., solvency ratios
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).
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | American Airlines Group Inc. debt to capital ratio improved from 2021 to 2022 and from 2022 to 2023. |
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | American Airlines Group Inc. debt to capital ratio (including operating lease liability) improved from 2021 to 2022 and from 2022 to 2023. |
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | American Airlines Group Inc. debt to assets ratio improved from 2021 to 2022 and from 2022 to 2023. |
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | American Airlines Group Inc. debt to assets ratio (including operating lease liability) improved from 2021 to 2022 and from 2022 to 2023. |
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | American Airlines Group Inc. interest coverage ratio improved from 2021 to 2022 and from 2022 to 2023. |
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | American Airlines Group Inc. fixed charge coverage ratio improved from 2021 to 2022 and from 2022 to 2023. |
Debt to Equity
American Airlines Group Inc., debt to equity calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current maturities of long-term debt and finance leases | 3,632) | 3,274) | 2,489) | 2,797) | 2,861) | |
| Long-term debt and finance leases, net of current maturities | 29,270) | 32,389) | 35,571) | 29,796) | 21,454) | |
| Total debt | 32,902) | 35,663) | 38,060) | 32,593) | 24,315) | |
| Stockholders’ deficit | (5,202) | (5,799) | (7,340) | (6,867) | (118) | |
| Solvency Ratio | ||||||
| Debt to equity1 | — | — | — | — | — | |
| Benchmarks | ||||||
| Debt to Equity, Competitors2 | ||||||
| FedEx Corp. | 0.79 | 0.81 | 0.86 | 1.20 | 0.99 | |
| Uber Technologies Inc. | 0.89 | 1.32 | 0.66 | 0.64 | 0.43 | |
| Union Pacific Corp. | 2.20 | 2.74 | 2.10 | 1.58 | 1.39 | |
| United Parcel Service Inc. | 1.29 | 0.99 | 1.54 | 37.53 | 7.73 | |
| Debt to Equity, Sector | ||||||
| Transportation | 1.23 | 1.29 | 1.22 | 1.69 | 1.39 | |
| Debt to Equity, Industry | ||||||
| Industrials | 1.40 | 1.30 | 1.22 | 1.68 | 1.79 | |
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 2023 Calculation
Debt to equity = Total debt ÷ Stockholders’ deficit
= 32,902 ÷ -5,202 = —
2 Click competitor name to see calculations.
Debt to Equity (including Operating Lease Liability)
American Airlines Group Inc., debt to equity (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current maturities of long-term debt and finance leases | 3,632) | 3,274) | 2,489) | 2,797) | 2,861) | |
| Long-term debt and finance leases, net of current maturities | 29,270) | 32,389) | 35,571) | 29,796) | 21,454) | |
| Total debt | 32,902) | 35,663) | 38,060) | 32,593) | 24,315) | |
| Current operating lease liabilities | 1,309) | 1,465) | 1,507) | 1,651) | 1,708) | |
| Noncurrent operating lease liabilities | 6,452) | 6,559) | 6,610) | 6,777) | 7,421) | |
| Total debt (including operating lease liability) | 40,663) | 43,687) | 46,177) | 41,021) | 33,444) | |
| Stockholders’ deficit | (5,202) | (5,799) | (7,340) | (6,867) | (118) | |
| Solvency Ratio | ||||||
| Debt to equity (including operating lease liability)1 | — | — | — | — | — | |
| Benchmarks | ||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | ||||||
| FedEx Corp. | 1.47 | 1.49 | 1.51 | 1.97 | 0.99 | |
| Uber Technologies Inc. | 1.04 | 1.58 | 0.79 | 0.78 | 0.55 | |
| Union Pacific Corp. | 2.31 | 2.87 | 2.22 | 1.67 | 1.49 | |
| United Parcel Service Inc. | 1.54 | 1.19 | 1.79 | 42.24 | 8.62 | |
| Debt to Equity (including Operating Lease Liability), Sector | ||||||
| Transportation | 1.60 | 1.67 | 1.56 | 2.11 | 1.51 | |
| Debt to Equity (including Operating Lease Liability), Industry | ||||||
| Industrials | 1.57 | 1.45 | 1.36 | 1.83 | 1.89 | |
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 2023 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Stockholders’ deficit
= 40,663 ÷ -5,202 = —
2 Click competitor name to see calculations.
Debt to Capital
American Airlines Group Inc., debt to capital calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current maturities of long-term debt and finance leases | 3,632) | 3,274) | 2,489) | 2,797) | 2,861) | |
| Long-term debt and finance leases, net of current maturities | 29,270) | 32,389) | 35,571) | 29,796) | 21,454) | |
| Total debt | 32,902) | 35,663) | 38,060) | 32,593) | 24,315) | |
| Stockholders’ deficit | (5,202) | (5,799) | (7,340) | (6,867) | (118) | |
| Total capital | 27,700) | 29,864) | 30,720) | 25,726) | 24,197) | |
| Solvency Ratio | ||||||
| Debt to capital1 | 1.19 | 1.19 | 1.24 | 1.27 | 1.00 | |
| Benchmarks | ||||||
| Debt to Capital, Competitors2 | ||||||
| FedEx Corp. | 0.44 | 0.45 | 0.46 | 0.55 | 0.50 | |
| Uber Technologies Inc. | 0.47 | 0.57 | 0.40 | 0.39 | 0.30 | |
| Union Pacific Corp. | 0.69 | 0.73 | 0.68 | 0.61 | 0.58 | |
| United Parcel Service Inc. | 0.56 | 0.50 | 0.61 | 0.97 | 0.89 | |
| Debt to Capital, Sector | ||||||
| Transportation | 0.55 | 0.56 | 0.55 | 0.63 | 0.58 | |
| Debt to Capital, Industry | ||||||
| Industrials | 0.58 | 0.57 | 0.55 | 0.63 | 0.64 | |
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 2023 Calculation
Debt to capital = Total debt ÷ Total capital
= 32,902 ÷ 27,700 = 1.19
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | American Airlines Group Inc. debt to capital ratio improved from 2021 to 2022 and from 2022 to 2023. |
Debt to Capital (including Operating Lease Liability)
American Airlines Group Inc., debt to capital (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current maturities of long-term debt and finance leases | 3,632) | 3,274) | 2,489) | 2,797) | 2,861) | |
| Long-term debt and finance leases, net of current maturities | 29,270) | 32,389) | 35,571) | 29,796) | 21,454) | |
| Total debt | 32,902) | 35,663) | 38,060) | 32,593) | 24,315) | |
| Current operating lease liabilities | 1,309) | 1,465) | 1,507) | 1,651) | 1,708) | |
| Noncurrent operating lease liabilities | 6,452) | 6,559) | 6,610) | 6,777) | 7,421) | |
| Total debt (including operating lease liability) | 40,663) | 43,687) | 46,177) | 41,021) | 33,444) | |
| Stockholders’ deficit | (5,202) | (5,799) | (7,340) | (6,867) | (118) | |
| Total capital (including operating lease liability) | 35,461) | 37,888) | 38,837) | 34,154) | 33,326) | |
| Solvency Ratio | ||||||
| Debt to capital (including operating lease liability)1 | 1.15 | 1.15 | 1.19 | 1.20 | 1.00 | |
| Benchmarks | ||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | ||||||
| FedEx Corp. | 0.60 | 0.60 | 0.60 | 0.66 | 0.50 | |
| Uber Technologies Inc. | 0.51 | 0.61 | 0.44 | 0.44 | 0.35 | |
| Union Pacific Corp. | 0.70 | 0.74 | 0.69 | 0.63 | 0.60 | |
| United Parcel Service Inc. | 0.61 | 0.54 | 0.64 | 0.98 | 0.90 | |
| Debt to Capital (including Operating Lease Liability), Sector | ||||||
| Transportation | 0.62 | 0.63 | 0.61 | 0.68 | 0.60 | |
| Debt to Capital (including Operating Lease Liability), Industry | ||||||
| Industrials | 0.61 | 0.59 | 0.58 | 0.65 | 0.65 | |
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).
1 2023 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 40,663 ÷ 35,461 = 1.15
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | American Airlines Group Inc. debt to capital ratio (including operating lease liability) improved from 2021 to 2022 and from 2022 to 2023. |
Debt to Assets
American Airlines Group Inc., debt to assets calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current maturities of long-term debt and finance leases | 3,632) | 3,274) | 2,489) | 2,797) | 2,861) | |
| Long-term debt and finance leases, net of current maturities | 29,270) | 32,389) | 35,571) | 29,796) | 21,454) | |
| Total debt | 32,902) | 35,663) | 38,060) | 32,593) | 24,315) | |
| Total assets | 63,058) | 64,716) | 66,467) | 62,008) | 59,995) | |
| Solvency Ratio | ||||||
| Debt to assets1 | 0.52 | 0.55 | 0.57 | 0.53 | 0.41 | |
| Benchmarks | ||||||
| Debt to Assets, Competitors2 | ||||||
| FedEx Corp. | 0.24 | 0.24 | 0.25 | 0.30 | 0.32 | |
| Uber Technologies Inc. | 0.26 | 0.30 | 0.25 | 0.24 | 0.19 | |
| Union Pacific Corp. | 0.49 | 0.51 | 0.47 | 0.43 | 0.41 | |
| United Parcel Service Inc. | 0.31 | 0.28 | 0.32 | 0.40 | 0.44 | |
| Debt to Assets, Sector | ||||||
| Transportation | 0.32 | 0.33 | 0.32 | 0.35 | 0.36 | |
| Debt to Assets, Industry | ||||||
| Industrials | 0.29 | 0.29 | 0.29 | 0.32 | 0.32 | |
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 2023 Calculation
Debt to assets = Total debt ÷ Total assets
= 32,902 ÷ 63,058 = 0.52
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | American Airlines Group Inc. debt to assets ratio improved from 2021 to 2022 and from 2022 to 2023. |
Debt to Assets (including Operating Lease Liability)
American Airlines Group Inc., debt to assets (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current maturities of long-term debt and finance leases | 3,632) | 3,274) | 2,489) | 2,797) | 2,861) | |
| Long-term debt and finance leases, net of current maturities | 29,270) | 32,389) | 35,571) | 29,796) | 21,454) | |
| Total debt | 32,902) | 35,663) | 38,060) | 32,593) | 24,315) | |
| Current operating lease liabilities | 1,309) | 1,465) | 1,507) | 1,651) | 1,708) | |
| Noncurrent operating lease liabilities | 6,452) | 6,559) | 6,610) | 6,777) | 7,421) | |
| Total debt (including operating lease liability) | 40,663) | 43,687) | 46,177) | 41,021) | 33,444) | |
| Total assets | 63,058) | 64,716) | 66,467) | 62,008) | 59,995) | |
| Solvency Ratio | ||||||
| Debt to assets (including operating lease liability)1 | 0.64 | 0.68 | 0.69 | 0.66 | 0.56 | |
| Benchmarks | ||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | ||||||
| FedEx Corp. | 0.44 | 0.43 | 0.44 | 0.49 | 0.32 | |
| Uber Technologies Inc. | 0.30 | 0.36 | 0.29 | 0.29 | 0.24 | |
| Union Pacific Corp. | 0.51 | 0.53 | 0.50 | 0.45 | 0.44 | |
| United Parcel Service Inc. | 0.38 | 0.33 | 0.37 | 0.44 | 0.49 | |
| Debt to Assets (including Operating Lease Liability), Sector | ||||||
| Transportation | 0.42 | 0.42 | 0.41 | 0.44 | 0.39 | |
| Debt to Assets (including Operating Lease Liability), Industry | ||||||
| Industrials | 0.33 | 0.33 | 0.32 | 0.35 | 0.34 | |
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 2023 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 40,663 ÷ 63,058 = 0.64
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | American Airlines Group Inc. debt to assets ratio (including operating lease liability) improved from 2021 to 2022 and from 2022 to 2023. |
Financial Leverage
American Airlines Group Inc., financial leverage calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Total assets | 63,058) | 64,716) | 66,467) | 62,008) | 59,995) | |
| Stockholders’ deficit | (5,202) | (5,799) | (7,340) | (6,867) | (118) | |
| Solvency Ratio | ||||||
| Financial leverage1 | — | — | — | — | — | |
| Benchmarks | ||||||
| Financial Leverage, Competitors2 | ||||||
| FedEx Corp. | 3.34 | 3.45 | 3.43 | 4.02 | 3.06 | |
| Uber Technologies Inc. | 3.44 | 4.37 | 2.68 | 2.71 | 2.24 | |
| Union Pacific Corp. | 4.54 | 5.38 | 4.49 | 3.68 | 3.40 | |
| United Parcel Service Inc. | 4.09 | 3.59 | 4.87 | 94.99 | 17.71 | |
| Financial Leverage, Sector | ||||||
| Transportation | 3.80 | 3.97 | 3.80 | 4.81 | 3.86 | |
| Financial Leverage, Industry | ||||||
| Industrials | 4.76 | 4.44 | 4.27 | 5.25 | 5.63 | |
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 2023 Calculation
Financial leverage = Total assets ÷ Stockholders’ deficit
= 63,058 ÷ -5,202 = —
2 Click competitor name to see calculations.
Interest Coverage
American Airlines Group Inc., interest coverage calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income (loss) | 822) | 127) | (1,993) | (8,885) | 1,686) | |
| Add: Income tax expense | 299) | 59) | (555) | (2,568) | 570) | |
| Add: Interest expense, net | 2,145) | 1,962) | 1,800) | 1,227) | 1,095) | |
| Earnings before interest and tax (EBIT) | 3,266) | 2,148) | (748) | (10,226) | 3,351) | |
| Solvency Ratio | ||||||
| Interest coverage1 | 1.52 | 1.09 | -0.42 | -8.33 | 3.06 | |
| Benchmarks | ||||||
| Interest Coverage, Competitors2 | ||||||
| FedEx Corp. | 8.73 | 8.11 | 9.42 | 3.48 | 2.11 | |
| Uber Technologies Inc. | 4.74 | -15.49 | -1.20 | -14.24 | -14.15 | |
| Union Pacific Corp. | 7.14 | 8.14 | 8.33 | 7.12 | 8.38 | |
| United Parcel Service Inc. | 11.92 | 22.06 | 24.91 | 3.63 | 9.66 | |
| Interest Coverage, Sector | ||||||
| Transportation | 8.11 | 7.03 | 10.81 | 2.18 | 2.96 | |
| Interest Coverage, Industry | ||||||
| Industrials | 7.17 | 5.71 | 6.21 | 2.23 | 4.59 | |
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 2023 Calculation
Interest coverage = EBIT ÷ Interest expense
= 3,266 ÷ 2,145 = 1.52
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | American Airlines Group Inc. interest coverage ratio improved from 2021 to 2022 and from 2022 to 2023. |
Fixed Charge Coverage
American Airlines Group Inc., fixed charge coverage calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income (loss) | 822) | 127) | (1,993) | (8,885) | 1,686) | |
| Add: Income tax expense | 299) | 59) | (555) | (2,568) | 570) | |
| Add: Interest expense, net | 2,145) | 1,962) | 1,800) | 1,227) | 1,095) | |
| Earnings before interest and tax (EBIT) | 3,266) | 2,148) | (748) | (10,226) | 3,351) | |
| Add: Operating lease cost | 2,016) | 2,007) | 2,012) | 1,957) | 2,027) | |
| Earnings before fixed charges and tax | 5,282) | 4,155) | 1,264) | (8,269) | 5,378) | |
| Interest expense, net | 2,145) | 1,962) | 1,800) | 1,227) | 1,095) | |
| Operating lease cost | 2,016) | 2,007) | 2,012) | 1,957) | 2,027) | |
| Fixed charges | 4,161) | 3,969) | 3,812) | 3,184) | 3,122) | |
| Solvency Ratio | ||||||
| Fixed charge coverage1 | 1.27 | 1.05 | 0.33 | -2.60 | 1.72 | |
| Benchmarks | ||||||
| Fixed Charge Coverage, Competitors2 | ||||||
| FedEx Corp. | 2.34 | 2.29 | 2.83 | 1.50 | 1.19 | |
| Uber Technologies Inc. | 3.48 | -9.72 | -0.36 | -6.43 | -8.62 | |
| Union Pacific Corp. | 5.82 | 6.64 | 6.81 | 5.79 | 6.62 | |
| United Parcel Service Inc. | 6.21 | 11.30 | 12.66 | 2.31 | 5.36 | |
| Fixed Charge Coverage, Sector | ||||||
| Transportation | 3.96 | 3.53 | 5.20 | 1.49 | 1.80 | |
| Fixed Charge Coverage, Industry | ||||||
| Industrials | 4.60 | 3.68 | 4.04 | 1.71 | 3.07 | |
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 2023 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 5,282 ÷ 4,161 = 1.27
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | American Airlines Group Inc. fixed charge coverage ratio improved from 2021 to 2022 and from 2022 to 2023. |