Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
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- Statement of Comprehensive Income
- Balance Sheet: Assets
- Balance Sheet: Liabilities and Stockholders’ Equity
- Common-Size Balance Sheet: Assets
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Present Value of Free Cash Flow to Equity (FCFE)
- Operating Profit Margin since 2013
- Current Ratio since 2013
- Debt to Equity since 2013
- Price to Book Value (P/BV) since 2013
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Solvency Ratios (Summary)
Based on: 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
- Debt to Capital Ratios
- Between March 2019 and December 2019, the debt to capital ratio remained stable around 1, indicating a high level of debt relative to capital. Starting in March 2020, this ratio showed an increasing trend, peaking at 1.31 in March 2022, suggesting a rising reliance on debt financing over this period. However, from March 2022 to December 2023, the ratio gradually declined to 1.19, indicating a slight reduction in leverage.
- When including operating lease liabilities, the debt to capital ratio mirrored the traditional measure's pattern but remained slightly lower, starting at 1.02 in March 2019, rising to a peak of 1.24 in March 2022, then gradually declining to 1.15 by December 2023.
- Debt to Assets Ratios
- Debt to assets remained relatively steady from March 2019 (0.40) through December 2019 (0.41). From March 2020 onward, there was a noticeable increase, peaking at 0.58 in March 2021. Following this peak, the ratio stabilized around 0.55 before slightly decreasing to 0.52 by December 2023, signifying a moderate reduction in debt relative to total assets in the most recent periods.
- Including operating lease liabilities, debt to assets started at 0.55 in March 2019, increased steadily to a high of 0.70 in March 2021, and thereafter displayed minor fluctuations, but overall it trended downward to 0.64 by the end of 2023. This indicates a similarly high but slightly declining leverage when operating leases are considered.
- Debt to Equity and Financial Leverage
- Debt to equity ratios and financial leverage data are mostly missing. The available values for March 31, 2019, only show very high ratios (157.71 for debt to equity and 382.34 for financial leverage), which are unusually elevated and likely indicate an exceptional or non-typical measurement or reporting error. No further data was available to confirm any trend or changes.
- Interest Coverage Ratio
- Interest coverage was not reported prior to March 2020. Starting from that quarter, the ratio showed a sharp downturn from 3.06 in March 2020 to deeply negative values in subsequent quarters, reaching as low as -8.33 in June 2020, indicating a substantial inability to cover interest expenses from operating earnings amid likely operational disruptions.
- From early 2021 onward, interest coverage improved gradually, crossing into positive territory in the first quarter of 2023 at 1.09 and further increasing to a peak of 2.63 in September 2023 before a slight decrease to 1.52 in December 2023. This recovery reflects an improving capacity to meet interest obligations, although coverage remains modest.
- Summary of Trends
- The data depict a period of heightened leverage starting in early 2020, likely influenced by external shocks affecting the business environment. Debt relative to capital and assets rose markedly through 2021, followed by a gradual deleveraging trend in 2022 and 2023. Interest coverage deteriorated severely in 2020 but has been recovering steadily since early 2021, indicating improving operational performance and financial health. Despite improved interest coverage, leverage levels remain elevated relative to pre-2020 figures, suggesting ongoing reliance on debt and lease obligations.
Debt Ratios
Coverage Ratios
Debt to Equity
Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |||||||
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Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||
Current maturities of long-term debt and finance leases | ||||||||||||||||||||||||||
Long-term debt and finance leases, net of current maturities | ||||||||||||||||||||||||||
Total debt | ||||||||||||||||||||||||||
Stockholders’ equity (deficit) | ||||||||||||||||||||||||||
Solvency Ratio | ||||||||||||||||||||||||||
Debt to equity1 | ||||||||||||||||||||||||||
Benchmarks | ||||||||||||||||||||||||||
Debt to Equity, Competitors2 | ||||||||||||||||||||||||||
FedEx Corp. | ||||||||||||||||||||||||||
Uber Technologies Inc. | ||||||||||||||||||||||||||
Union Pacific Corp. | ||||||||||||||||||||||||||
United Airlines Holdings Inc. | ||||||||||||||||||||||||||
United Parcel Service Inc. |
Based on: 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q4 2023 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity (deficit)
= ÷ =
2 Click competitor name to see calculations.
The financial data reveals several notable trends over the observed periods, particularly from the first quarter of 2019 through the fourth quarter of 2023.
- Total Debt
- Total debt displayed a general upward trajectory from early 2019 through mid-2020, increasing significantly from approximately $24.0 billion to over $32.7 billion by September 2020. This peak was followed by a period of fluctuation, with total debt remaining elevated around $33 billion through 2021 and early 2022. Subsequently, a gradual reduction trend is observed from 2022 through the end of 2023, with total debt decreasing steadily to nearly $33 billion by December 2023. This pattern suggests initial debt accumulation, likely reflecting liquidity measures or capital needs, followed by a cautious deleveraging phase.
- Stockholders’ Equity (Deficit)
- Stockholders' equity exhibited a consistent negative position throughout the timeline, indicating an equity deficit. Starting from a deficit of $636 million in March 2019, the equity position worsened substantially as the value declined to nearly -$6.9 billion by December 2020. Although some periods showed slight improvements, such as in 2019 and mid-2023, the overall trend remained negative with equity deficits deepening again in late 2022 and into 2023, ending with a deficit of approximately -$5.2 billion by December 2023. This sustained negative equity reflects continued financial strain and suggests challenges in profitability or asset valuation during these years.
- Debt to Equity Ratio
- The debt to equity ratio is explicitly provided only once, indicating an extreme ratio of approximately 157.71 at some point. Given the persistent and increasing equity deficit paired with rising or stable high levels of total debt, the implied debt to equity leverage ratio would have been very high or undefined across most periods, representing significant financial leverage and elevated risk from a solvency perspective.
In summary, the data demonstrates a substantial increase in total debt during the early phase, likely connected to operational or liquidity needs, followed by a slow but steady reduction effort. In contrast, stockholders’ equity remained consistently negative, reflecting ongoing financial difficulties. The combination of high leverage and negative equity over multiple quarters underscores a fragile financial structure, with potential implications for the company’s creditworthiness and investment attractiveness during the reported period.
Debt to Equity (including Operating Lease Liability)
American Airlines Group Inc., debt to equity (including operating lease liability) calculation (quarterly data)
Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |||||||
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Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||
Current maturities of long-term debt and finance leases | ||||||||||||||||||||||||||
Long-term debt and finance leases, net of current maturities | ||||||||||||||||||||||||||
Total debt | ||||||||||||||||||||||||||
Current operating lease liabilities | ||||||||||||||||||||||||||
Noncurrent operating lease liabilities | ||||||||||||||||||||||||||
Total debt (including operating lease liability) | ||||||||||||||||||||||||||
Stockholders’ equity (deficit) | ||||||||||||||||||||||||||
Solvency Ratio | ||||||||||||||||||||||||||
Debt to equity (including operating lease liability)1 | ||||||||||||||||||||||||||
Benchmarks | ||||||||||||||||||||||||||
Debt to Equity (including Operating Lease Liability), Competitors2 | ||||||||||||||||||||||||||
FedEx Corp. | ||||||||||||||||||||||||||
Uber Technologies Inc. | ||||||||||||||||||||||||||
Union Pacific Corp. | ||||||||||||||||||||||||||
United Airlines Holdings Inc. | ||||||||||||||||||||||||||
United Parcel Service Inc. |
Based on: 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q4 2023 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Stockholders’ equity (deficit)
= ÷ =
2 Click competitor name to see calculations.
The financial data reveals several important trends in the company's leverage and equity positions over the analyzed periods.
- Total Debt (including operating lease liability)
- The total debt remained relatively stable from March 31, 2019, at approximately $33.4 billion through the end of 2019. Beginning in early 2020, debt increased sharply, reaching a peak around $41.0 billion by December 31, 2020. This rise likely reflects increased borrowing during the early stages of the pandemic. From 2021 onward, the total debt continued to increase, peaking in March 2021 at approximately $48.0 billion. Following this peak, a gradual decrease in total debt is observed through the end of 2023, declining to roughly $40.7 billion by December 31, 2023. This suggests a phase of deleveraging after the initial pandemic response.
- Stockholders’ Equity (Deficit)
- The stockholders’ equity exhibits a persistent deficit across all periods, indicating a negative net worth. Initially, the deficit was minor in 2019, fluctuating around breakeven with values close to zero. However, starting in March 2020, the deficit widened significantly, hitting its worst point at approximately -$6.9 billion by December 2020. This deterioration correlates with the timeframe when the company likely experienced major financial stress. Although equity remains negative in subsequent periods, there is some improvement from the trough, with the deficit decreasing to around -$5.8 billion by December 2022. Nevertheless, the negative equity persists, with fluctuations continuing into late 2023, ending at about -$5.2 billion. This sustained deficit signals ongoing challenges in restoring positive net equity.
- Debt to Equity Ratio (including operating lease liability)
- This ratio is available only for selected periods. The reported figure of 215.25 (likely representing the ratio at a particular point, although the exact date is not specified) highlights an extremely high level of leverage relative to equity, which is consistent with the observed negative equity values. Given the persistent equity deficit, the debt to equity ratio remains an unreliable but indicative metric of substantial financial risk and leveraged capital structure throughout the period.
Overall, the data indicates the company significantly increased its leverage in response to market conditions around early 2020, concurrent with the onset of the COVID-19 pandemic. Despite some reduction in debt after the peak in early 2021, the company continues to operate with a substantial equity deficit and elevated leverage, suggesting ongoing financial vulnerability. The gradual improvement in equity deficit after 2020 points to some recovery efforts, but the capital structure remains highly leveraged as of the end of 2023.
Debt to Capital
Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |||||||
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Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||
Current maturities of long-term debt and finance leases | ||||||||||||||||||||||||||
Long-term debt and finance leases, net of current maturities | ||||||||||||||||||||||||||
Total debt | ||||||||||||||||||||||||||
Stockholders’ equity (deficit) | ||||||||||||||||||||||||||
Total capital | ||||||||||||||||||||||||||
Solvency Ratio | ||||||||||||||||||||||||||
Debt to capital1 | ||||||||||||||||||||||||||
Benchmarks | ||||||||||||||||||||||||||
Debt to Capital, Competitors2 | ||||||||||||||||||||||||||
FedEx Corp. | ||||||||||||||||||||||||||
Uber Technologies Inc. | ||||||||||||||||||||||||||
Union Pacific Corp. | ||||||||||||||||||||||||||
United Airlines Holdings Inc. | ||||||||||||||||||||||||||
United Parcel Service Inc. |
Based on: 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q4 2023 Calculation
Debt to capital = Total debt ÷ Total capital
= ÷ =
2 Click competitor name to see calculations.
The debt and capital structure of the company from the first quarter of 2019 through the fourth quarter of 2023 exhibits notable fluctuations and trends reflective of broader financial strategies and market conditions. Total debt remained relatively stable around the 24,000 to 25,000 million US dollars range during 2019, before experiencing a marked increase beginning in the first quarter of 2020, peaking in 2021 at nearly 40,000 million US dollars. This escalation coincides with the global economic disruptions in 2020 and 2021. Following the peak, a gradual reduction in total debt is observed from early 2022 through the end of 2023, indicating a period of deleveraging or debt repayments.
Total capital mirrors this pattern, with initial stability around 23,400 to 25,400 million US dollars in 2019 and a decline to 22,446 million in the first quarter of 2020. Thereafter, capital increases sharply in the subsequent quarters of 2020 and reaches a peak in 2021 at over 32,000 million US dollars. Starting in 2022, total capital trends slightly downward and fluctuates modestly but maintains levels above the pre-2020 period, suggesting some stabilization in capital structure.
The debt to capital ratio remained close to or slightly below 1.0 throughout 2019, indicating that total debt was roughly equal to or slightly less than total capital during this period. Beginning in early 2020, this ratio rises sharply, exceeding 1.1 and reaching as high as approximately 1.31 during 2022. This increase indicates a higher proportion of debt relative to capital, consistent with the aforementioned rise in total debt. However, from mid-2022 onwards, the ratio demonstrates a slight decline to around 1.19 by the end of 2023, reflecting a modest improvement in capital structure through either capital increases, debt reduction, or both.
Overall, the financial data reflects a period of increased leverage starting in early 2020, likely a response to external shocks, followed by a cautious approach to deleveraging and capital management starting in 2022. The company's debt remains a significant component relative to total capital, although recent trends suggest a slow return toward a more balanced capital structure.
- Total Debt
- Stable around 24,000-25,000 million US dollars in 2019; sharp increase in 2020-2021 peaking near 40,000 million; gradual decline from 2022 through 2023.
- Total Capital
- Consistent around 23,000-25,000 million in 2019; drop in early 2020 followed by a rise to over 32,000 million in 2021; moderate decline but mostly stable above pre-2020 levels from 2022 onward.
- Debt to Capital Ratio
- Near 1.0 or slightly below in 2019; increased sharply in 2020-2022 reaching a maximum of approximately 1.31; slight downward trend commencing mid-2022 to about 1.19 by end of 2023.
Debt to Capital (including Operating Lease Liability)
American Airlines Group Inc., debt to capital (including operating lease liability) calculation (quarterly data)
Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |||||||
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Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||
Current maturities of long-term debt and finance leases | ||||||||||||||||||||||||||
Long-term debt and finance leases, net of current maturities | ||||||||||||||||||||||||||
Total debt | ||||||||||||||||||||||||||
Current operating lease liabilities | ||||||||||||||||||||||||||
Noncurrent operating lease liabilities | ||||||||||||||||||||||||||
Total debt (including operating lease liability) | ||||||||||||||||||||||||||
Stockholders’ equity (deficit) | ||||||||||||||||||||||||||
Total capital (including operating lease liability) | ||||||||||||||||||||||||||
Solvency Ratio | ||||||||||||||||||||||||||
Debt to capital (including operating lease liability)1 | ||||||||||||||||||||||||||
Benchmarks | ||||||||||||||||||||||||||
Debt to Capital (including Operating Lease Liability), Competitors2 | ||||||||||||||||||||||||||
FedEx Corp. | ||||||||||||||||||||||||||
Uber Technologies Inc. | ||||||||||||||||||||||||||
Union Pacific Corp. | ||||||||||||||||||||||||||
United Airlines Holdings Inc. | ||||||||||||||||||||||||||
United Parcel Service Inc. |
Based on: 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q4 2023 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= ÷ =
2 Click competitor name to see calculations.
- Total Debt (Including Operating Lease Liability)
- The total debt exhibited relative stability between March 2019 and December 2019, fluctuating marginally around the 33,000 to 34,700 million USD range. From March 2020 onward, there was a noticeable increase, peaking around mid-2020 with values exceeding 41,000 million USD. Following this peak, a gradual decline trend is observed through 2021 and 2022, continuing into 2023, where the debt decreased to near 40,663 million USD by the end of the year.
- Total Capital (Including Operating Lease Liability)
- Total capital showed minor variations between March 2019 and December 2019, remaining close to 33,000 to 34,700 million USD. In the first half of 2020, total capital increased sharply to nearly 37,000 million USD but then declined in the second half of 2020 to just above 34,000 million USD. Throughout 2021 and into early 2022, total capital rose again, reaching near 38,000 million USD by the end of 2022. However, starting in late 2022 and continuing through 2023, total capital trended downward, falling to approximately 35,461 million USD by December 2023.
- Debt to Capital Ratio (Including Operating Lease Liability)
- The debt to capital ratio showed stability at around 1.0 during 2019, indicating a debt level roughly equal to total capital during that period. Beginning in early 2020, the ratio increased above 1.0, reaching as high as 1.20 to 1.24 between late 2020 and early 2022. This suggests that debt exceeded capital by a significant margin during this time frame. From mid-2022 onward through 2023, the ratio demonstrated a moderate decline but remained elevated relative to 2019 levels, fluctuating between 1.11 and 1.16, indicating a persistently high leverage position throughout the recent periods.
- Overall Trends
- The data reveals a pronounced increase in both debt and capital during the initial phase of the COVID-19 pandemic around early to mid-2020, corresponding with periods of heightened financial stress and potential liquidity needs. Despite a peak in debt levels during this period, subsequent years show a concerted effort to reduce total debt and capital to more conservative levels. The persistently high debt to capital ratio throughout 2020 to 2023 indicates elevated leverage, reflecting the company's reliance on debt financing relative to its capital base during the recovery period.
Debt to Assets
Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |||||||
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Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||
Current maturities of long-term debt and finance leases | ||||||||||||||||||||||||||
Long-term debt and finance leases, net of current maturities | ||||||||||||||||||||||||||
Total debt | ||||||||||||||||||||||||||
Total assets | ||||||||||||||||||||||||||
Solvency Ratio | ||||||||||||||||||||||||||
Debt to assets1 | ||||||||||||||||||||||||||
Benchmarks | ||||||||||||||||||||||||||
Debt to Assets, Competitors2 | ||||||||||||||||||||||||||
FedEx Corp. | ||||||||||||||||||||||||||
Uber Technologies Inc. | ||||||||||||||||||||||||||
Union Pacific Corp. | ||||||||||||||||||||||||||
United Airlines Holdings Inc. | ||||||||||||||||||||||||||
United Parcel Service Inc. |
Based on: 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q4 2023 Calculation
Debt to assets = Total debt ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
- Total Debt
- The total debt exhibited an overall increasing trend from March 31, 2019, through December 31, 2020, rising from approximately $24 billion to a peak of around $32.8 billion. This increase was followed by fluctuations with a gradual decline starting from March 31, 2022, where debt reduced from about $37.8 billion to approximately $32.9 billion by December 31, 2023. The data indicates a significant rise in debt during the early stages of the observed period, potentially influenced by external factors, with a conscious effort to reduce or stabilize debt levels in more recent quarters.
- Total Assets
- Total assets initially decreased slightly from just above $60.7 billion at the end of Q1 2019 to nearly $58.6 billion by Q1 2020. Following this dip, there was an increase reaching a peak around June 30, 2021, at approximately $72.5 billion. Subsequently, assets showed a declining trend through the next two years, tapering off to about $63.1 billion as of December 31, 2023. This suggests that after a period of asset growth potentially aimed at supporting operations or expansion, the company faced asset reductions possibly due to disposals, depreciation, or market influences.
- Debt to Assets Ratio
- The debt to assets ratio reflects the relative proportion of debt financing within the company's asset base. Starting at 0.40 in March 2019, this ratio gradually increased, reaching a high of 0.58 by March 31, 2021, indicating growing leverage. After this peak, the ratio stabilized and then slightly declined, fluctuating near 0.52 by the end of 2023. The rising leverage in the earlier period suggests higher financial risk or increased borrowing capacity, while the subsequent stabilization and mild reduction imply a cautious approach toward managing financial risk during the recovery phase.
- Summary of Trends
- Overall, the data depicts a period marked by rising debt and asset growth up to mid-2021, followed by a phase of asset contraction and debt reduction. The increasing debt to assets ratio up to early 2021 highlights growing leverage possibly in response to operational or market challenges. The trend toward reducing debt and stabilizing leverage ratios thereafter may indicate strategic financial management aimed at strengthening the company’s balance sheet. These patterns illustrate a dynamic financial posture responsive to external conditions and internal objectives.
Debt to Assets (including Operating Lease Liability)
American Airlines Group Inc., debt to assets (including operating lease liability) calculation (quarterly data)
Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |||||||
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Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||
Current maturities of long-term debt and finance leases | ||||||||||||||||||||||||||
Long-term debt and finance leases, net of current maturities | ||||||||||||||||||||||||||
Total debt | ||||||||||||||||||||||||||
Current operating lease liabilities | ||||||||||||||||||||||||||
Noncurrent operating lease liabilities | ||||||||||||||||||||||||||
Total debt (including operating lease liability) | ||||||||||||||||||||||||||
Total assets | ||||||||||||||||||||||||||
Solvency Ratio | ||||||||||||||||||||||||||
Debt to assets (including operating lease liability)1 | ||||||||||||||||||||||||||
Benchmarks | ||||||||||||||||||||||||||
Debt to Assets (including Operating Lease Liability), Competitors2 | ||||||||||||||||||||||||||
FedEx Corp. | ||||||||||||||||||||||||||
Uber Technologies Inc. | ||||||||||||||||||||||||||
Union Pacific Corp. | ||||||||||||||||||||||||||
United Airlines Holdings Inc. | ||||||||||||||||||||||||||
United Parcel Service Inc. |
Based on: 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q4 2023 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
- Total debt (including operating lease liability)
- The total debt exhibited a generally decreasing trend from the peak levels reached in mid-2020 through the end of 2023. Initial values hovered around $33.4 billion in early 2019, rising sharply to above $41 billion by the end of 2020, reflecting increased leverage during the onset of the pandemic. Following this peak, debt gradually declined to approximately $40.7 billion by the end of 2023, indicating sustained efforts to reduce leverage over this period.
- Total assets
- Total assets fluctuated moderately throughout the period. Starting near $60.8 billion in early 2019, assets dipped during the pandemic's early phase but then rose to a peak of around $72.5 billion by mid-2021. Subsequent quarters showed a declining trend, with assets ending at about $63.1 billion at the close of 2023. This pattern suggests a period of asset growth possibly linked to recovery or acquisition efforts followed by asset base optimization or disposals.
- Debt to assets ratio (including operating lease liability)
- The debt to assets ratio demonstrated a notable increase during the 2020 pandemic period, moving from approximately 0.56 at the start of 2019 to a peak of 0.70 in early 2021. This rise highlights increased financial leverage as debt grew relative to the asset base. From 2021 onward, the ratio showed a gradual decline, stabilizing in the low 0.60s by the end of 2023, reflecting a simultaneous reduction in debt and adjustment in assets that contributed to improved leverage metrics.
Financial Leverage
Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |||||||
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Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||
Total assets | ||||||||||||||||||||||||||
Stockholders’ equity (deficit) | ||||||||||||||||||||||||||
Solvency Ratio | ||||||||||||||||||||||||||
Financial leverage1 | ||||||||||||||||||||||||||
Benchmarks | ||||||||||||||||||||||||||
Financial Leverage, Competitors2 | ||||||||||||||||||||||||||
FedEx Corp. | ||||||||||||||||||||||||||
Uber Technologies Inc. | ||||||||||||||||||||||||||
Union Pacific Corp. | ||||||||||||||||||||||||||
United Airlines Holdings Inc. | ||||||||||||||||||||||||||
United Parcel Service Inc. |
Based on: 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q4 2023 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity (deficit)
= ÷ =
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several significant trends in the company's asset base, equity position, and financial leverage over the observed periods.
- Total Assets
-
Total assets exhibited moderate fluctuations between March 2019 and December 2020, maintaining a range roughly between 58.5 billion and 64.5 billion US dollars. A sharp decline is evident starting in the first quarter of 2020, coinciding with the onset of the pandemic, which appears to have disrupted the asset base.
From March 2021 onwards, assets showed a recovery trend, peaking around 72.4 billion US dollars in June 2021. Following this peak, total assets gradually trended downward, ending at approximately 63.1 billion US dollars by December 2023. Despite the decline from the peak, the asset base remained relatively stable compared to the pronounced dip in early 2020.
- Stockholders’ Equity (Deficit)
-
The equity position displayed notable volatility throughout the entire period, starting with a small negative equity of -636 million US dollars at the end of March 2019. Equity values fluctuated near the zero mark in 2019 but deteriorated significantly starting in early 2020, coinciding with the global economic impact of the COVID-19 pandemic.
The equity deficit deepened substantially during 2020, reaching a maximum negative value of -6.867 billion US dollars in December 2020. Although some improvement was observed in 2021 and early 2022, equity remained negative throughout the period, indicating persistent financial stress.
A partial recovery trend emerged in 2023, highlighted by a reduction of the equity deficit to approximately -5.2 billion US dollars by December 2023. This suggests some positive efforts toward restoring shareholder value, though the company remained substantially undercapitalized.
- Financial Leverage
-
Financial leverage is sparsely reported, with an exceptionally high ratio of 382.34 observed without a clear corresponding period. This outlier suggests either a data anomaly or an extraordinary event impacting the leverage calculation at that time.
The absence of leverage data for other periods limits the ability to definitively assess trends in capital structure or reliance on debt financing. However, the persistent equity deficits and fluctuations in total assets imply a high degree of leverage and financial risk throughout the period.
Interest Coverage
Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |||||||
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Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||
Net income (loss) | ||||||||||||||||||||||||||
Add: Income tax expense | ||||||||||||||||||||||||||
Add: Interest expense, net | ||||||||||||||||||||||||||
Earnings before interest and tax (EBIT) | ||||||||||||||||||||||||||
Solvency Ratio | ||||||||||||||||||||||||||
Interest coverage1 | ||||||||||||||||||||||||||
Benchmarks | ||||||||||||||||||||||||||
Interest Coverage, Competitors2 | ||||||||||||||||||||||||||
Uber Technologies Inc. | ||||||||||||||||||||||||||
Union Pacific Corp. | ||||||||||||||||||||||||||
United Airlines Holdings Inc. | ||||||||||||||||||||||||||
United Parcel Service Inc. |
Based on: 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q4 2023 Calculation
Interest coverage
= (EBITQ4 2023
+ EBITQ3 2023
+ EBITQ2 2023
+ EBITQ1 2023)
÷ (Interest expenseQ4 2023
+ Interest expenseQ3 2023
+ Interest expenseQ2 2023
+ Interest expenseQ1 2023)
= ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
- Earnings before Interest and Tax (EBIT)
- The EBIT values exhibit significant volatility throughout the analyzed period. Initially, from March 2019 to December 2019, there is a general positive trend with EBIT fluctuating between 516 million and 1,157 million US dollars. However, from the first quarter of 2020, a pronounced decline is evident, with EBIT turning negative and reaching a low of -2,755 million in September 2020, reflecting considerable operational challenges. A recovery phase starts in 2021, with EBIT improving but still negative by the end of that year. From early 2022 through 2023, EBIT continues to show recovery, oscillating between positive and negative values, and peaks at 2,311 million US dollars in June 2023 before decreasing again in subsequent quarters. This pattern suggests ongoing instability with intermittent improvement in profitability.
- Interest Expense, Net
- Interest expense remains relatively stable over the period, with values fluctuating narrowly between 254 million and 537 million US dollars. There is a slight upward trend in interest expense from 2020 onward, which may reflect increased borrowing or refinancing activities during the period of operational distress. Despite fluctuations, interest expense does not exhibit extreme variability compared to EBIT, indicating steady financing costs.
- Interest Coverage Ratio
- The interest coverage ratio demonstrates a marked decline starting in 2020, transitioning from positive ratios above 3.0 in early 2019 to deeply negative values, reaching as low as -8.33 during the third quarter of 2020. This indicates the company's earnings before interest and taxes were insufficient to cover interest expenses, reflecting financial stress. Improvement signs appear from late 2022 through 2023, with the ratio turning positive again and reaching above 2.6 in the third quarter of 2023, signaling enhanced ability to meet interest obligations. Nonetheless, fluctuations remain, with a decrease observed toward the end of 2023.
- Overall Analysis
- The financial data reveals the substantial impact of adverse conditions beginning in early 2020, likely linked to external shocks affecting operational profitability. While interest expenses have remained relatively steady, the company's earnings capacity to service debt was severely compromised, as evidenced by negative EBIT and low or negative interest coverage ratios. The gradual recovery observed from 2021 through 2023 suggests efforts toward operational stabilization. Continued variability in EBIT and interest coverage implies that financial performance remains sensitive to market or operational challenges, requiring ongoing management attention to restore and maintain consistent profitability and debt servicing capability.