Analysis of Profitability Ratios
Quarterly Data
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Paying user area
Try for free
American Airlines Group Inc. pages available for free this week:
- Statement of Comprehensive Income
- Balance Sheet: Liabilities and Stockholders’ Equity
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Enterprise Value to FCFF (EV/FCFF)
- Dividend Discount Model (DDM)
- Net Profit Margin since 2013
- Return on Assets (ROA) since 2013
- Current Ratio since 2013
- Price to Book Value (P/BV) since 2013
- Analysis of Revenues
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to American Airlines Group Inc. for $22.49.
This is a one-time payment. There is no automatic renewal.
We accept:
Profitability Ratios (Summary)
American Airlines Group Inc., profitability ratios (quarterly data)
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).
- Operating Profit Margin
- The operating profit margin displayed a marked decline beginning with positive results in early 2019, where the margin was not reported until Q4 2019 at 6.7%. From Q1 2020, a steep downward trend is observed, dipping into significant negative territory with a low of -71.61% in Q2 2021. Following this nadir, there is a gradual recovery through the subsequent quarters, returning to positive territory by Q1 2023 at 3.28%, and continuing an upward trajectory to 9.29% by Q3 2023 before a slight decline to 5.75% in Q4 2023.
- Net Profit Margin
- Net profit margin trends mirror the operating margin but with consistently lower values, reflective of other expenses impacting the bottom line. After a positive 3.68% in Q4 2019, the margin declined sharply to a low of -61.53% in Q2 2021. Thereafter, the recovery phase began, with margins turning positive again in Q1 2023 at 0.26%, rising to 4.98% by Q3 2023 before a slight contraction to 1.56% in Q4 2023. This pattern suggests ongoing challenges but an improving financial performance over the period.
- Return on Assets (ROA)
- Return on assets followed a similar pattern, starting positive at 2.81% in Q4 2019, declining into negative values through early 2020, reaching a low of -14.33% in Q1 2021. The subsequent recovery is evident, with ROA crossing into positive territory again by Q1 2023 at 0.2%, peaking at 3.92% in Q3 2023, before a minor decline to 1.3% in Q4 2023. This indicates improving asset efficiency despite earlier significant setbacks.
Return on Sales
Return on Investment
Operating Profit Margin
American Airlines Group Inc., operating profit margin 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||
| Operating income (loss) | ||||||||||||||||||||||||||
| Operating revenues | ||||||||||||||||||||||||||
| Profitability Ratio | ||||||||||||||||||||||||||
| Operating profit margin1 | ||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||
| Operating Profit Margin, 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
Operating profit margin = 100
× (Operating income (loss)Q4 2023
+ Operating income (loss)Q3 2023
+ Operating income (loss)Q2 2023
+ Operating income (loss)Q1 2023)
÷ (Operating revenuesQ4 2023
+ Operating revenuesQ3 2023
+ Operating revenuesQ2 2023
+ Operating revenuesQ1 2023)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
- Operating Income (Loss)
- The operating income exhibits significant volatility over the observed periods. From March 2019 through December 2019, the company maintained positive operating income, peaking at 1,153 million USD in June 2019. However, starting March 2020, there is a marked and sustained decline coinciding with the onset of the global pandemic, with operating losses recorded in all quarters of 2020, reaching its lowest at -2,871 million USD in September 2020. Recovery efforts appear evident in 2021, with losses reducing and even returning to a positive figure in June and September 2021, though the year ended with a loss again. In 2022 and early 2023, the company shows a notable recovery trend, with operating income becoming positive and peaking at 2,163 million USD in June 2023, before declining slightly thereafter.
- Operating Revenues
- Operating revenues display a general pattern corresponding to industry-wide disruptions and subsequent recovery phases. In 2019, revenues were relatively stable, fluctuating between approximately 10,500 and 12,000 million USD each quarter. The onset of the pandemic in early 2020 caused a sharp revenue decline, with the lowest figure at 1,622 million USD in the second quarter of 2020. Recovery is evident starting in the second half of 2020, with revenues gradually increasing through 2021 and into 2022, surpassing pre-pandemic levels by June 2022 with revenues peaking at 13,462 million USD. A slight decline in revenues is observed in the final quarters of 2023, though values remain substantially higher than the pandemic low points.
- Operating Profit Margin
- The operating profit margin data begins from December 2019, reflecting profitability trends. Initially, the margin was positive at 6.7% in December 2019 and 0.32% in March 2020. This margin sharply deteriorates starting in the second quarter of 2020, reaching deeply negative values exceeding -60% during the height of the pandemic impact in June 2020. Margins show gradual improvement through 2021 but remain largely negative until early 2022. From the second quarter of 2022 onwards, the margins shift back to positive territory, peaking at 9.29% in September 2023, before slightly receding to 5.75% by December 2023, signaling a steady recovery in profitability.
- Overall Trends and Insights
- The data clearly reflects the profound impact of the COVID-19 pandemic on the company's financial performance, with a sharp decline beginning in early 2020 across all key financial metrics, especially operating income and margin. The gradual recovery phase beginning mid-2020 and accelerating through 2022 and 2023 suggests an effective response to the challenges, with revenues recovering to and exceeding pre-pandemic levels, and profitability reestablishing positive margins. However, the observed quarter-to-quarter fluctuations in operating income and revenue in late 2023 indicate potential ongoing volatility in the operating environment. The recovery trajectory demonstrates resilience but also highlights sensitivity to external conditions affecting the airline industry.
Net Profit Margin
American Airlines Group Inc., net profit margin 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||
| Net income (loss) | ||||||||||||||||||||||||||
| Operating revenues | ||||||||||||||||||||||||||
| Profitability Ratio | ||||||||||||||||||||||||||
| Net profit margin1 | ||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||
| Net Profit Margin, 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
Net profit margin = 100
× (Net income (loss)Q4 2023
+ Net income (loss)Q3 2023
+ Net income (loss)Q2 2023
+ Net income (loss)Q1 2023)
÷ (Operating revenuesQ4 2023
+ Operating revenuesQ3 2023
+ Operating revenuesQ2 2023
+ Operating revenuesQ1 2023)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
- Net Income (Loss)
- The net income exhibited significant fluctuations over the periods analyzed. Starting with positive results in 2019, with a peak of 662 million US dollars in the second quarter, there was a steep decline beginning in the first quarter of 2020, correlating likely with external adverse factors. The company reported substantial losses throughout 2020, with the lowest point observed in the third quarter of 2020 at -2399 million US dollars. Recovery appeared to begin in 2021, with profits returning to positive territory intermittently, though volatility persisted into 2023. By the end of 2023, net income values showed a mixed pattern with a significant positive spike in the third quarter followed by a slight loss and modest positive income in the final quarter.
- Operating Revenues
- Operating revenues mirrored the patterns seen in net income, initially remaining relatively stable through 2019, with quarterly revenues hovering around 11,000 to 12,000 million US dollars. A sharp decline emerged in the first half of 2020, reaching a trough of 1,622 million US dollars in the second quarter, indicative of a considerable operational impact. Revenues gradually recovered through 2021 and 2022, reaching pre-crisis levels by mid-2022, and remained relatively strong through 2023, fluctuating between approximately 12,000 and 14,000 million US dollars. The data suggests a steady recovery in business activity and revenue generation following the disruption period in 2020.
- Net Profit Margin
- Net profit margin data, available starting in the first quarter of 2020, reveal a progression from slight profitability to significant losses and then back towards recovery. The most pronounced negative margins occurred in mid to late 2020, hitting a low of -51.25% in the second quarter of 2020, which aligns with the deepest net income losses and lowest operating revenues. Recovery was incremental through 2021 and 2022, with margins improving but remaining negative until returning to a slight positive margin of 0.26% in the first quarter of 2023. Subsequent quarters in 2023 demonstrated further improvement with margins rising up to 4.98% before a decrease to 1.56% in the final quarter, highlighting ongoing challenges to consistent profitability.
- Overall Trends and Insights
- The financial data demonstrates a clear disruption beginning in early 2020, with sharp declines in both revenues and profitability that coincide with the global events impacting the airline industry. The gradual recovery in revenues through 2021 and 2022 suggests resilience and increasing demand. However, profitability lagged behind revenue recovery, with net income and margins experiencing considerable volatility and only modest positive returns through 2023. This pattern indicates that while operational activity resumed, cost structures and other factors likely continued to exert pressure on earnings. The variance in quarterly results in 2023 points to an environment of ongoing uncertainty and adjustment.
Return on Equity (ROE)
American Airlines Group Inc., ROE 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||
| Net income (loss) | ||||||||||||||||||||||||||
| Stockholders’ equity (deficit) | ||||||||||||||||||||||||||
| Profitability Ratio | ||||||||||||||||||||||||||
| ROE1 | ||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||
| ROE, 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
ROE = 100
× (Net income (loss)Q4 2023
+ Net income (loss)Q3 2023
+ Net income (loss)Q2 2023
+ Net income (loss)Q1 2023)
÷ Stockholders’ equity (deficit)
= 100 × ( + + + )
÷ =
2 Click competitor name to see calculations.
The net income (loss) figures exhibit significant volatility over the observed periods. From March 2019 through December 2019, net income showed consistently positive results, peaking at $662 million in June 2019 before slightly declining yet remaining positive throughout the year. However, beginning in the first quarter of 2020, there is a marked transition to substantial net losses, with the largest loss of $2,399 million recorded in September 2020. This negative trend persists through most of 2020 and into early 2021.
Starting the second quarter of 2021, net income begins a recovery trajectory, crossing into positive values in June 2021 at $19 million and showing a generally positive trend into 2022 and early 2023. Notably, the third quarter of 2022 reports the highest positive net income in this recovery phase at $803 million. Although there are some fluctuations, including a loss of $545 million in the third quarter of 2023, the overall trend suggests a gradual return to profitability compared to the severe losses during 2020.
Stockholders’ equity presents a challenging picture, with the company experiencing a deficit in every reported period. Initially, the deficit narrows substantially from March 2019 (-$636 million) and turns positive by the third quarter of 2019 ($160 million) before reversing course again. From the first quarter of 2020 onwards, equity deficits deepen considerably, reaching a nadir of -$8,940 million in the first quarter of 2022. Subsequently, the deficit decreases moderately but remains substantial through to the end of 2023, indicating persistent financial strain and erosion of shareholder value over the review period.
The absence of data for Return on Equity (ROE) likely reflects the complications arising from the consistent negative equity balances and the fluctuations in net income, which make the ratio either not meaningful or challenging to compute for this entity during these periods.
- Summary of Trends and Insights
- - The company experienced a strong profit performance prior to 2020, with consistent positive net income.
- - The onset of 2020 marked a significant downturn, with deep losses consistent throughout most of that year and into early 2021, reflecting extraordinary challenges.
- - Recovery efforts appear to take effect starting mid-2021, with net income turning positive and generally improving through 2022 and into early 2023, despite some volatility.
- - Stockholders’ equity remains negative throughout the entire period, with deficits expanding sharply in 2020 and only partially recovering thereafter, highlighting ongoing capital structure concerns.
- - The company’s financial position indicates high vulnerability during the crisis period but shows signs of gradual stabilization amid recovery phases.
Return on Assets (ROA)
American Airlines Group Inc., ROA calculation (quarterly data)
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||
| Net income (loss) | ||||||||||||||||||||||||||
| Total assets | ||||||||||||||||||||||||||
| Profitability Ratio | ||||||||||||||||||||||||||
| ROA1 | ||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||
| ROA, 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
ROA = 100
× (Net income (loss)Q4 2023
+ Net income (loss)Q3 2023
+ Net income (loss)Q2 2023
+ Net income (loss)Q1 2023)
÷ Total assets
= 100 × ( + + + )
÷ =
2 Click competitor name to see calculations.
The financial data reveals notable fluctuations in net income and total assets over the periods, alongside varying returns on assets (ROA).
- Net Income (Loss)
- The net income demonstrates significant volatility with positive earnings in early periods of 2019, peaking at 662 million USD in the second quarter of 2019 and 425 million USD in the third quarter of the same year. Beginning with the first quarter of 2020, a pronounced downturn occurred, as evidenced by consistent losses ranging from -2,241 million USD to -2,178 million USD through the end of 2020. Recovery signs appear in 2021 with fluctuations from losses to modest profits, though volatility persisted—particularly a notable loss of -931 million USD in the fourth quarter of 2021. In 2022, the company recorded intermittent profits with a high of 803 million USD in the third quarter before a sharp decline to 10 million USD by the end of the year. Early 2023 presents an improvement with gains up to 1,338 million USD in the second quarter, followed by mixed outcomes towards year-end, including both losses and gains, indicating ongoing instability.
- Total Assets
- Total assets displayed moderate variation over the evaluated timeline. Starting at approximately 60.8 billion USD in early 2019, assets marginally fluctuated, reaching a peak of around 72.5 billion USD in mid-2021. Subsequently, a slight decrease is observed with values hovering in the mid-60 billion USD range towards the end of 2023. Asset levels remained relatively stable despite earnings volatility, suggesting maintained capital investment or asset retention strategies through the period.
- Return on Assets (ROA)
- The ROA metric mirrors the net income trends, exhibiting a decline beginning in early 2020, turning negative and worsening throughout most of 2020, with values reaching as low as -14.33%. Recovery is evident starting in late 2022 and continuing into 2023, with ROA returning to marginally positive territory, peaking at 3.92% in the third quarter of 2023. This gradual improvement underscores a recovering profitability relative to asset base, yet the ROA figures remain below pre-pandemic levels.
Overall, the data points to a significant impact on profitability commencing in early 2020, likely due to external economic pressures, with partial recovery trends emerging gradually through 2021 and 2022. Asset quantities remain comparatively steady, while profitability as measured by ROA shows improvement but has not yet fully rebounded to previous highs. The fluctuations in net income and ROA suggest continued operational challenges and ongoing efforts toward financial stabilization.