Stock Analysis on Net

American Airlines Group Inc. (NASDAQ:AAL)

Analysis of Solvency Ratios 

Microsoft Excel

Solvency Ratios (Summary)

American Airlines Group Inc., solvency ratios

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Debt Ratios
Debt to equity 6.38
Debt to equity (including operating lease liability) 6.38
Debt to capital 1.24 1.27 1.00 1.01 0.86
Debt to capital (including operating lease liability) 1.19 1.20 1.00 1.00 0.86
Debt to assets 0.57 0.53 0.41 0.40 0.49
Debt to assets (including operating lease liability) 0.69 0.66 0.56 0.56 0.49
Financial leverage 13.09
Coverage Ratios
Interest coverage -0.42 -8.33 3.06 2.78 3.93
Fixed charge coverage 0.33 -2.60 1.72 1.64 1.80

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).

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 deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021.
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) deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021.
Debt to assets ratio A solvency ratio calculated as total debt divided by total assets. American Airlines Group Inc. debt to assets ratio deteriorated from 2019 to 2020 and from 2020 to 2021.
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) deteriorated from 2019 to 2020 and from 2020 to 2021.

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 deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level.
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 deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level.

Debt to Equity

American Airlines Group Inc., debt to equity calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Current maturities of long-term debt and finance leases 2,489  2,797  2,861  3,294  2,554 
Long-term debt and finance leases, net of current maturities 35,571  29,796  21,454  21,179  22,511 
Total debt 38,060  32,593  24,315  24,473  25,065 
 
Stockholders’ equity (deficit) (7,340) (6,867) (118) (169) 3,926 
Solvency Ratio
Debt to equity1 6.38
Benchmarks
Debt to Equity, Competitors2
CSX Corp. 1.21 1.28 1.37 1.17 0.80
Delta Air Lines Inc. 6.93 19.01 0.73 0.71 0.64
FedEx Corp. 0.86 1.20 0.99 0.85 0.93
Union Pacific Corp. 2.10 1.58 1.39 1.10 0.68
United Airlines Holdings Inc. 6.69 4.56 1.29 1.47 1.63
United Parcel Service Inc. 1.54 37.53 7.73 7.53 24.29
Debt to Equity, Sector
Transportation 2.77 3.61 1.73 1.59 1.40
Debt to Equity, Industry
Industrials 1.80 2.37 2.07 1.98 1.72

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).

1 2021 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity (deficit)
= 38,060 ÷ -7,340 =

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

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Current maturities of long-term debt and finance leases 2,489  2,797  2,861  3,294  2,554 
Long-term debt and finance leases, net of current maturities 35,571  29,796  21,454  21,179  22,511 
Total debt 38,060  32,593  24,315  24,473  25,065 
Current operating lease liabilities 1,507  1,651  1,708  1,654  — 
Noncurrent operating lease liabilities 6,610  6,777  7,421  7,902  — 
Total debt (including operating lease liability) 46,177  41,021  33,444  34,029  25,065 
 
Stockholders’ equity (deficit) (7,340) (6,867) (118) (169) 3,926 
Solvency Ratio
Debt to equity (including operating lease liability)1 6.38
Benchmarks
Debt to Equity (including Operating Lease Liability), Competitors2
CSX Corp. 1.25 1.31 1.42 1.17 0.80
Delta Air Lines Inc. 8.92 23.17 1.12 1.21 0.64
FedEx Corp. 1.51 1.97 0.99 0.85 0.93
Union Pacific Corp. 2.22 1.67 1.49 1.10 0.68
United Airlines Holdings Inc. 7.83 5.50 1.77 1.47 1.63
United Parcel Service Inc. 1.79 42.24 8.62 7.53 24.29
Debt to Equity (including Operating Lease Liability), Sector
Transportation 3.41 4.41 2.07 1.80 1.40
Debt to Equity (including Operating Lease Liability), Industry
Industrials 2.05 2.64 2.27 2.07 1.72

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).

1 2021 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Stockholders’ equity (deficit)
= 46,177 ÷ -7,340 =

2 Click competitor name to see calculations.


Debt to Capital

American Airlines Group Inc., debt to capital calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Current maturities of long-term debt and finance leases 2,489  2,797  2,861  3,294  2,554 
Long-term debt and finance leases, net of current maturities 35,571  29,796  21,454  21,179  22,511 
Total debt 38,060  32,593  24,315  24,473  25,065 
Stockholders’ equity (deficit) (7,340) (6,867) (118) (169) 3,926 
Total capital 30,720  25,726  24,197  24,304  28,991 
Solvency Ratio
Debt to capital1 1.24 1.27 1.00 1.01 0.86
Benchmarks
Debt to Capital, Competitors2
CSX Corp. 0.55 0.56 0.58 0.54 0.45
Delta Air Lines Inc. 0.87 0.95 0.42 0.42 0.39
FedEx Corp. 0.46 0.55 0.50 0.46 0.48
Union Pacific Corp. 0.68 0.61 0.58 0.52 0.41
United Airlines Holdings Inc. 0.87 0.82 0.56 0.60 0.62
United Parcel Service Inc. 0.61 0.97 0.89 0.88 0.96
Debt to Capital, Sector
Transportation 0.73 0.78 0.63 0.61 0.58
Debt to Capital, Industry
Industrials 0.64 0.70 0.67 0.66 0.63

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).

1 2021 Calculation
Debt to capital = Total debt ÷ Total capital
= 38,060 ÷ 30,720 = 1.24

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 deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021.

Debt to Capital (including Operating Lease Liability)

American Airlines Group Inc., debt to capital (including operating lease liability) calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Current maturities of long-term debt and finance leases 2,489  2,797  2,861  3,294  2,554 
Long-term debt and finance leases, net of current maturities 35,571  29,796  21,454  21,179  22,511 
Total debt 38,060  32,593  24,315  24,473  25,065 
Current operating lease liabilities 1,507  1,651  1,708  1,654  — 
Noncurrent operating lease liabilities 6,610  6,777  7,421  7,902  — 
Total debt (including operating lease liability) 46,177  41,021  33,444  34,029  25,065 
Stockholders’ equity (deficit) (7,340) (6,867) (118) (169) 3,926 
Total capital (including operating lease liability) 38,837  34,154  33,326  33,860  28,991 
Solvency Ratio
Debt to capital (including operating lease liability)1 1.19 1.20 1.00 1.00 0.86
Benchmarks
Debt to Capital (including Operating Lease Liability), Competitors2
CSX Corp. 0.56 0.57 0.59 0.54 0.45
Delta Air Lines Inc. 0.90 0.96 0.53 0.55 0.39
FedEx Corp. 0.60 0.66 0.50 0.46 0.48
Union Pacific Corp. 0.69 0.63 0.60 0.52 0.41
United Airlines Holdings Inc. 0.89 0.85 0.64 0.60 0.62
United Parcel Service Inc. 0.64 0.98 0.90 0.88 0.96
Debt to Capital (including Operating Lease Liability), Sector
Transportation 0.77 0.82 0.67 0.64 0.58
Debt to Capital (including Operating Lease Liability), Industry
Industrials 0.67 0.73 0.69 0.67 0.63

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).

1 2021 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 46,177 ÷ 38,837 = 1.19

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) deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021.

Debt to Assets

American Airlines Group Inc., debt to assets calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Current maturities of long-term debt and finance leases 2,489  2,797  2,861  3,294  2,554 
Long-term debt and finance leases, net of current maturities 35,571  29,796  21,454  21,179  22,511 
Total debt 38,060  32,593  24,315  24,473  25,065 
 
Total assets 66,467  62,008  59,995  60,580  51,396 
Solvency Ratio
Debt to assets1 0.57 0.53 0.41 0.40 0.49
Benchmarks
Debt to Assets, Competitors2
CSX Corp. 0.40 0.42 0.42 0.40 0.33
Delta Air Lines Inc. 0.37 0.40 0.17 0.16 0.17
FedEx Corp. 0.25 0.30 0.32 0.32 0.31
Union Pacific Corp. 0.47 0.43 0.41 0.38 0.29
United Airlines Holdings Inc. 0.49 0.46 0.28 0.33 0.34
United Parcel Service Inc. 0.32 0.40 0.44 0.45 0.53
Debt to Assets, Sector
Transportation 0.40 0.41 0.35 0.34 0.35
Debt to Assets, Industry
Industrials 0.33 0.35 0.33 0.33 0.33

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).

1 2021 Calculation
Debt to assets = Total debt ÷ Total assets
= 38,060 ÷ 66,467 = 0.57

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 deteriorated from 2019 to 2020 and from 2020 to 2021.

Debt to Assets (including Operating Lease Liability)

American Airlines Group Inc., debt to assets (including operating lease liability) calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Current maturities of long-term debt and finance leases 2,489  2,797  2,861  3,294  2,554 
Long-term debt and finance leases, net of current maturities 35,571  29,796  21,454  21,179  22,511 
Total debt 38,060  32,593  24,315  24,473  25,065 
Current operating lease liabilities 1,507  1,651  1,708  1,654  — 
Noncurrent operating lease liabilities 6,610  6,777  7,421  7,902  — 
Total debt (including operating lease liability) 46,177  41,021  33,444  34,029  25,065 
 
Total assets 66,467  62,008  59,995  60,580  51,396 
Solvency Ratio
Debt to assets (including operating lease liability)1 0.69 0.66 0.56 0.56 0.49
Benchmarks
Debt to Assets (including Operating Lease Liability), Competitors2
CSX Corp. 0.42 0.43 0.44 0.40 0.33
Delta Air Lines Inc. 0.48 0.49 0.27 0.27 0.17
FedEx Corp. 0.44 0.49 0.32 0.32 0.31
Union Pacific Corp. 0.50 0.45 0.44 0.38 0.29
United Airlines Holdings Inc. 0.58 0.55 0.39 0.33 0.34
United Parcel Service Inc. 0.37 0.44 0.49 0.45 0.53
Debt to Assets (including Operating Lease Liability), Sector
Transportation 0.50 0.51 0.41 0.39 0.35
Debt to Assets (including Operating Lease Liability), Industry
Industrials 0.37 0.39 0.36 0.34 0.33

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).

1 2021 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 46,177 ÷ 66,467 = 0.69

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) deteriorated from 2019 to 2020 and from 2020 to 2021.

Financial Leverage

American Airlines Group Inc., financial leverage calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Total assets 66,467  62,008  59,995  60,580  51,396 
Stockholders’ equity (deficit) (7,340) (6,867) (118) (169) 3,926 
Solvency Ratio
Financial leverage1 13.09
Benchmarks
Financial Leverage, Competitors2
CSX Corp. 3.00 3.04 3.23 2.92 2.43
Delta Air Lines Inc. 18.64 46.93 4.20 4.40 3.83
FedEx Corp. 3.43 4.02 3.06 2.70 3.02
Union Pacific Corp. 4.49 3.68 3.40 2.90 2.33
United Airlines Holdings Inc. 13.56 9.99 4.56 4.48 4.81
United Parcel Service Inc. 4.87 94.99 17.71 16.56 45.40
Financial Leverage, Sector
Transportation 6.85 8.70 5.01 4.61 4.02
Financial Leverage, Industry
Industrials 5.47 6.71 6.35 6.06 5.22

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).

1 2021 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity (deficit)
= 66,467 ÷ -7,340 =

2 Click competitor name to see calculations.


Interest Coverage

American Airlines Group Inc., interest coverage calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Net income (loss) (1,993) (8,885) 1,686  1,412  1,919 
Add: Income tax expense (555) (2,568) 570  472  1,165 
Add: Interest expense, net 1,800  1,227  1,095  1,056  1,053 
Earnings before interest and tax (EBIT) (748) (10,226) 3,351  2,940  4,137 
Solvency Ratio
Interest coverage1 -0.42 -8.33 3.06 2.78 3.93
Benchmarks
Interest Coverage, Competitors2
CSX Corp. 7.86 5.81 6.86 7.74 6.75
Delta Air Lines Inc. 1.31 -15.78 21.59 17.56 15.40
FedEx Corp. 9.42 3.48 2.11 8.80 9.94
Union Pacific Corp. 8.33 7.12 8.38 9.90 11.61
United Airlines Holdings Inc. -0.62 -7.89 7.06 5.03 6.36
United Parcel Service Inc. 24.91 3.63 9.66 10.95 16.78
Interest Coverage, Sector
Transportation 4.99 -2.39 7.06 7.83 9.09
Interest Coverage, Industry
Industrials 4.34 -0.03 5.57 5.11 5.97

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).

1 2021 Calculation
Interest coverage = EBIT ÷ Interest expense
= -748 ÷ 1,800 = -0.42

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 deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level.

Fixed Charge Coverage

American Airlines Group Inc., fixed charge coverage calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Net income (loss) (1,993) (8,885) 1,686  1,412  1,919 
Add: Income tax expense (555) (2,568) 570  472  1,165 
Add: Interest expense, net 1,800  1,227  1,095  1,056  1,053 
Earnings before interest and tax (EBIT) (748) (10,226) 3,351  2,940  4,137 
Add: Operating lease cost 2,012  1,957  2,027  1,907  2,800 
Earnings before fixed charges and tax 1,264  (8,269) 5,378  4,847  6,937 
 
Interest expense, net 1,800  1,227  1,095  1,056  1,053 
Operating lease cost 2,012  1,957  2,027  1,907  2,800 
Fixed charges 3,812  3,184  3,122  2,963  3,853 
Solvency Ratio
Fixed charge coverage1 0.33 -2.60 1.72 1.64 1.80
Benchmarks
Fixed Charge Coverage, Competitors2
CSX Corp. 7.10 5.34 6.26 7.10 6.04
Delta Air Lines Inc. 1.19 -7.00 5.72 4.95 4.36
FedEx Corp. 2.83 1.50 1.19 2.25 2.38
Union Pacific Corp. 6.81 5.79 6.62 7.11 7.37
United Airlines Holdings Inc. -0.01 -3.58 3.32 2.08 2.29
United Parcel Service Inc. 12.66 2.31 5.36 4.85 6.69
Fixed Charge Coverage, Sector
Transportation 3.02 -0.54 3.35 3.34 3.40
Fixed Charge Coverage, Industry
Industrials 2.95 0.39 3.42 3.02 3.28

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).

1 2021 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 1,264 ÷ 3,812 = 0.33

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 deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level.