Analysis of Long-term (Investment) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Long-term Activity Ratios (Summary)
American Airlines Group Inc., long-term (investment) activity 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).
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio declined sharply from 1.31 in 2019 to 0.55 in 2020, indicating a significant reduction in efficiency in utilizing net fixed assets to generate revenue during that period. Thereafter, there was a recovery trend with the ratio rising to 1.01 in 2021 and further increasing to 1.62 and 1.72 in 2022 and 2023 respectively, surpassing the pre-2020 level. This suggests an improved and growing efficiency in asset utilization over the last two years.
- Net Fixed Asset Turnover (Including Operating Lease, Right-of-Use Asset)
- Including operating lease and right-of-use assets, the turnover ratio shows a similar pattern to the net fixed asset turnover, starting at 1.05 in 2019 and dropping to 0.44 in 2020. The ratio then increased steadily to 0.80 in 2021, 1.28 in 2022, and 1.36 in 2023. Although the values are consistently lower than the net fixed asset turnover without including operating leases, the upward trajectory indicates improving asset efficiency when considering leased assets as well.
- Total Asset Turnover
- The total asset turnover ratio experienced a pronounced decline from 0.76 in 2019 to 0.28 in 2020, reflecting decreased overall asset utilization during that year. A gradual recovery followed, with the ratio climbing to 0.45 in 2021, then to 0.76 in 2022, and further to 0.84 in 2023, which slightly exceeds the level observed before the downturn.
- Equity Turnover
- No data were provided for equity turnover across the reported periods, precluding any analysis or comment on trends related to equity utilization.
Net Fixed Asset Turnover
American Airlines Group Inc., net fixed asset turnover 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) | ||||||
| Operating revenues | 52,788) | 48,971) | 29,882) | 17,337) | 45,768) | |
| Property and equipment, net | 30,764) | 30,200) | 29,537) | 31,699) | 34,995) | |
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover1 | 1.72 | 1.62 | 1.01 | 0.55 | 1.31 | |
| Benchmarks | ||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||
| FedEx Corp. | 2.22 | 2.45 | 2.35 | 2.06 | 2.29 | |
| Uber Technologies Inc. | 17.98 | 15.31 | 9.42 | 6.14 | — | |
| Union Pacific Corp. | 0.42 | 0.44 | 0.40 | 0.36 | — | |
| United Airlines Holdings Inc. | 1.35 | 1.31 | 0.77 | 0.49 | — | |
| United Parcel Service Inc. | 2.46 | 2.89 | 2.91 | 2.62 | — | |
| Net Fixed Asset Turnover, Sector | ||||||
| Transportation | 1.67 | 1.79 | 1.55 | 1.30 | — | |
| Net Fixed Asset Turnover, Industry | ||||||
| Industrials | 2.86 | 2.94 | 2.72 | 2.17 | — | |
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
Net fixed asset turnover = Operating revenues ÷ Property and equipment, net
= 52,788 ÷ 30,764 = 1.72
2 Click competitor name to see calculations.
The annual financial data reveals several notable trends over the five-year period ending December 31, 2023.
- Operating Revenues
- Operating revenues experienced a significant decline in 2020 compared to 2019, dropping from approximately $45.8 billion to $17.3 billion. This sharp decrease likely reflects a severe operational impact during that year. However, from 2021 onward, revenues showed a consistent recovery trajectory, increasing to about $29.9 billion in 2021, then to $49.0 billion in 2022, and further to $52.8 billion in 2023. By the end of the period, operating revenues not only recovered but slightly surpassed the 2019 pre-decline level.
- Property and Equipment, Net
- The net value of property and equipment displayed a steady decline from $35.0 billion in 2019 to $29.5 billion in 2021. Thereafter, the asset base stabilized, with modest increases to $30.2 billion in 2022 and $30.8 billion in 2023. This pattern suggests significant asset disposals or impairments during the earlier period, followed by more conservative asset management or reinvestment in the later years.
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio, which measures operating revenue generated per dollar of net fixed assets, shows a pronounced decline from 1.31 in 2019 to 0.55 in 2020, reflecting the impact of reduced revenues relative to asset levels. In subsequent years, this ratio improved steadily, moving to 1.01 in 2021, 1.62 in 2022, and 1.72 in 2023. The ratio's upward trend indicates increasing efficiency in utilizing fixed assets to generate revenue, surpassing the 2019 benchmark by the end of the period.
Overall, the data illustrates an initial period of significant operational and asset challenges, with subsequent strong recovery in revenues and improved asset utilization efficiency. The stabilization and slight growth in property and equipment values alongside increasing turnover ratios suggest effective adaptation and potential capacity optimization following the initial downturn.
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
American Airlines Group Inc., net fixed asset turnover (including operating lease, right-of-use asset) calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Operating revenues | 52,788) | 48,971) | 29,882) | 17,337) | 45,768) | |
| Property and equipment, net | 30,764) | 30,200) | 29,537) | 31,699) | 34,995) | |
| Operating lease right-of-use assets | 7,939) | 8,094) | 7,850) | 8,039) | 8,737) | |
| Property and equipment, net (including operating lease, right-of-use asset) | 38,703) | 38,294) | 37,387) | 39,738) | 43,732) | |
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | 1.36 | 1.28 | 0.80 | 0.44 | 1.05 | |
| Benchmarks | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | ||||||
| FedEx Corp. | 1.55 | 1.71 | 1.64 | 1.46 | 2.29 | |
| Uber Technologies Inc. | 11.25 | 9.03 | 5.39 | 3.61 | — | |
| Union Pacific Corp. | 0.41 | 0.43 | 0.38 | 0.35 | — | |
| United Airlines Holdings Inc. | 1.23 | 1.17 | 0.67 | 0.43 | — | |
| United Parcel Service Inc. | 2.20 | 2.61 | 2.63 | 2.40 | — | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector | ||||||
| Transportation | 1.44 | 1.53 | 1.33 | 1.12 | — | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | ||||||
| Industrials | 2.49 | 2.54 | 2.34 | 1.92 | — | |
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
Net fixed asset turnover (including operating lease, right-of-use asset) = Operating revenues ÷ Property and equipment, net (including operating lease, right-of-use asset)
= 52,788 ÷ 38,703 = 1.36
2 Click competitor name to see calculations.
- Operating Revenues
- The operating revenues experienced a substantial decline from 45,768 million USD in 2019 to 17,337 million USD in 2020, indicating a significant reduction likely due to adverse external conditions. Subsequently, there was a recovery trend, with revenues increasing to 29,882 million USD in 2021, 48,971 million USD in 2022, and reaching 52,788 million USD in 2023, surpassing the pre-decline level.
- Property and Equipment, Net
- The net value of property and equipment, including operating lease right-of-use assets, showed a consistent decreasing trend from 43,732 million USD in 2019 to 37,387 million USD in 2021. Following this period, a slight increase was observed with values rising to 38,294 million USD in 2022 and 38,703 million USD in 2023, suggesting modest reinvestment or asset valuation adjustments after a phase of asset reduction.
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio declined sharply from 1.05 in 2019 to 0.44 in 2020, reflecting a substantial drop in revenue generation relative to fixed assets during that year. Thereafter, the ratio improved to 0.80 in 2021 and continued an upward trajectory, reaching 1.28 in 2022 and 1.36 in 2023. This progression indicates enhanced efficiency in utilizing fixed assets to generate revenue over the period following the initial downturn.
Total Asset Turnover
American Airlines Group Inc., total asset turnover 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) | ||||||
| Operating revenues | 52,788) | 48,971) | 29,882) | 17,337) | 45,768) | |
| Total assets | 63,058) | 64,716) | 66,467) | 62,008) | 59,995) | |
| Long-term Activity Ratio | ||||||
| Total asset turnover1 | 0.84 | 0.76 | 0.45 | 0.28 | 0.76 | |
| Benchmarks | ||||||
| Total Asset Turnover, Competitors2 | ||||||
| FedEx Corp. | 1.03 | 1.09 | 1.01 | 0.94 | 1.28 | |
| Uber Technologies Inc. | 0.96 | 0.99 | 0.45 | 0.33 | — | |
| Union Pacific Corp. | 0.36 | 0.38 | 0.34 | 0.31 | — | |
| United Airlines Holdings Inc. | 0.76 | 0.67 | 0.36 | 0.26 | — | |
| United Parcel Service Inc. | 1.28 | 1.41 | 1.40 | 1.36 | — | |
| Total Asset Turnover, Sector | ||||||
| Transportation | 0.88 | 0.92 | 0.76 | 0.69 | — | |
| Total Asset Turnover, Industry | ||||||
| Industrials | 0.67 | 0.66 | 0.58 | 0.50 | — | |
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
Total asset turnover = Operating revenues ÷ Total assets
= 52,788 ÷ 63,058 = 0.84
2 Click competitor name to see calculations.
- Operating Revenues
- The operating revenues experienced a significant decline in 2020, dropping from 45,768 million USD in 2019 to 17,337 million USD, reflecting an adverse impact during that period. Subsequently, there was a steady recovery trend, with revenues increasing to 29,882 million USD in 2021 and further to 48,971 million USD in 2022, surpassing the 2019 level. The upward trend continued into 2023, reaching 52,788 million USD, indicating growth beyond the pre-decline phase.
- Total Assets
- Total assets showed a gradual increase from 59,995 million USD in 2019 to 66,467 million USD in 2021. After peaking in 2021, total assets declined slightly in 2022 to 64,716 million USD and further to 63,058 million USD in 2023. Overall, total assets exhibited moderate variability, with a peak in the middle of the analyzed period followed by a mild reduction.
- Total Asset Turnover
- The total asset turnover ratio demonstrates a substantial drop in efficiency in 2020, falling sharply to 0.28 from 0.76 in 2019. This indicates diminished operational efficiency or asset utilization during that year. The ratio showed improvement to 0.45 in 2021 and returned to the 2019 level of 0.76 by 2022. In 2023, the ratio increased further to 0.84, suggesting enhanced efficiency in utilizing assets to generate revenue.
Equity Turnover
American Airlines Group Inc., equity turnover 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) | ||||||
| Operating revenues | 52,788) | 48,971) | 29,882) | 17,337) | 45,768) | |
| Stockholders’ deficit | (5,202) | (5,799) | (7,340) | (6,867) | (118) | |
| Long-term Activity Ratio | ||||||
| Equity turnover1 | — | — | — | — | — | |
| Benchmarks | ||||||
| Equity Turnover, Competitors2 | ||||||
| FedEx Corp. | 3.46 | 3.75 | 3.47 | 3.78 | 3.92 | |
| Uber Technologies Inc. | 3.31 | 4.34 | 1.21 | 0.91 | — | |
| Union Pacific Corp. | 1.63 | 2.05 | 1.54 | 1.15 | — | |
| United Airlines Holdings Inc. | 5.76 | 6.52 | 4.90 | 2.58 | — | |
| United Parcel Service Inc. | 5.26 | 5.07 | 6.83 | 128.81 | — | |
| Equity Turnover, Sector | ||||||
| Transportation | 3.76 | 4.16 | 3.40 | 3.69 | — | |
| Equity Turnover, Industry | ||||||
| Industrials | 3.33 | 3.06 | 2.63 | 2.75 | — | |
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
Equity turnover = Operating revenues ÷ Stockholders’ deficit
= 52,788 ÷ -5,202 = —
2 Click competitor name to see calculations.
The financial data presents a notable trajectory in operating revenues, stockholders’ deficit, and an undefined equity turnover ratio over the five-year period ending in 2023.
- Operating Revenues
- Operating revenues exhibit a significant decline in 2020, dropping from $45,768 million in 2019 to $17,337 million, reflecting a substantial downturn likely tied to external disruptions. A recovery trend is evident from 2021 onwards, with revenues rising to $29,882 million in 2021, $48,971 million in 2022, and $52,788 million in 2023. This trajectory demonstrates a strong rebound and growth beyond the pre-2020 level, indicating improved operational conditions or market demand.
- Stockholders’ Deficit
- The stockholders’ deficit worsens sharply in 2020, deepening from a relatively modest deficit of $118 million in 2019 to a substantial negative equity of $6,867 million. The deficit continues to increase slightly in 2021, reaching $7,340 million. Thereafter, there is a gradual reduction in the deficit, amounting to $5,799 million in 2022 and further improving to $5,202 million in 2023. Despite this improvement, the company remains in a negative equity position, indicating ongoing financial challenges or accumulated losses that have not yet been fully reversed.
- Equity Turnover Ratio
- The equity turnover ratio lacks available data for all periods, preventing any analysis or conclusions regarding the company’s efficiency in utilizing shareholders' equity to generate revenues.
Overall, the data suggest a severe impact affecting performance and equity in 2020, followed by a recovery phase in revenues and a partial restitution in equity position. Continued monitoring is necessary to assess whether the recovery is sustainable and if the negative equity position can be fully resolved.