Analysis of Profitability Ratios
Quarterly Data
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
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- Income Statement
- Common-Size Balance Sheet: Assets
- Common Stock Valuation Ratios
- Enterprise Value (EV)
- Enterprise Value to EBITDA (EV/EBITDA)
- Operating Profit Margin since 2013
- Return on Equity (ROE) since 2013
- Return on Assets (ROA) since 2013
- Price to Operating Profit (P/OP) since 2013
- Price to Book Value (P/BV) since 2013
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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).
- Operating Profit Margin
- The operating profit margin experienced a significant decline beginning in the first quarter of 2020, reaching a low point of -71.61% by the end of the first quarter of 2021. This reflects severe operational challenges. However, a gradual improvement trend emerged starting from the second quarter of 2021, with the margin moving closer to zero and turning positive in the fourth quarter of 2022. The margin peaked at 9.29% in the third quarter of 2023 before slightly decreasing to 5.75% by the last quarter of 2023. This recovery suggests a restoration in operational efficiency and profitability over the period analyzed.
- Net Profit Margin
- The net profit margin followed a pattern similar to the operating profit margin, starting with significant negative values in early 2020 and worsening to -61.53% by the first quarter of 2021. Subsequent quarters show a continuous improvement, with the margin becoming positive at 0.26% in the fourth quarter of 2022. The margin then further increased, reaching a peak of 4.98% in the third quarter of 2023, but receded to 1.56% by the end of 2023. This trajectory indicates an overall recovery in the company's profitability after a period of substantial losses.
- Return on Assets (ROA)
- ROA exhibited negative values throughout most of 2020 and 2021, with the lowest point around -14.33% at the end of 2020. Subsequently, ROA improved steadily, turning positive at 0.2% in the fourth quarter of 2022. The highest ROA of 3.92% was recorded in the third quarter of 2023, before slightly declining to 1.3% by year-end 2023. The improvement in ROA reflects more effective utilization of assets to generate net income over time despite substantial initial challenges.
- Return on Equity (ROE)
- No data was available for return on equity, preventing any analysis or insight regarding this metric.
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 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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).
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) Trends
- The operating income showed significant volatility over the periods analyzed. Early 2020 was marked by substantial losses, peaking in negative territory at -2871 million US dollars in September 2020. An improvement trend emerged in 2021, with the company returning to positive operating income in the middle of the year, reaching as high as 595 million US dollars in September. However, losses recurred toward the end of 2021 and into early 2022. The company experienced a notable recovery from mid-2022, achieving several quarters of positive operating income, with a peak of 2163 million US dollars in June 2023. Nevertheless, losses reappeared intermittently, such as in September 2023, indicating some inconsistency in operating results.
- Operating Revenues Patterns
- Operating revenues displayed a recovery trajectory after a sharp decline in early 2020. Initial quarters of 2020 saw a steep drop, from 8515 million US dollars in March to a low of 1622 million in June, followed by gradual improvement through the rest of the year. From 2021 onwards, revenues increased steadily, peaking at 14055 million US dollars in June 2023. Although there was a slight decrease in subsequent quarters, revenue remained at historically high levels compared to the early pandemic period, reflecting a recovery in business operations.
- Operating Profit Margin Analysis
- The operating profit margin mirrored the income and revenue trends, showing extreme negative margins in 2020, with the lowest point at -71.61% in March 2021. This margin improved consistently through 2021 and 2022, turning positive by December 2022 and continuing to rise, reaching a peak of 9.29% in June 2023. While the margin dipped slightly in the following quarters, it remained positive and above 5%, indicating an improved level of operational efficiency and profitability relative to the revenue base.
- Summary Insights
- The overall analysis reveals a company deeply affected by external challenges in 2020, with drastic income losses and revenue declines. Recovery efforts in 2021 led to improved operating results and margins, although fluctuations persisted into 2022 and early 2023. The positive trend in revenues and operating margins during the latter periods suggests a strengthening operational performance. However, the intermittent losses highlight ongoing volatility and some exposure to market or operational uncertainties. Focus on stabilizing income and further enhancing margins would be critical for sustained profitability.
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 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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).
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)
- There is significant volatility in net income across the periods analyzed. The company experienced substantial losses throughout 2020, with quarterly net losses consistently exceeding $2 billion. Starting in early 2021, the losses began to reduce, with the second and third quarters showing a move toward profitability, including a positive net income of $19 million in the second quarter and $169 million in the third quarter of 2021. However, the fourth quarter of 2021 saw a reversal with a loss of $931 million. The company's earnings improved markedly during 2022, with positive net income recorded for all four quarters, peaking at $803 million in the fourth quarter. The first quarter of 2023 showed a sharp drop to near break-even at $10 million, followed by a strong rebound in the second quarter at $1.338 billion. The third quarter again showed a loss of $545 million, and the year closed near break-even with $19 million in the fourth quarter.
- Operating Revenues
- Operating revenues demonstrate a clear recovery trend from 2020 lows. The first quarter of 2020 began with revenues of $8.515 billion, dropping sharply to $1.622 billion in the second quarter amid evident disruptions. Revenues steadily increased through the remainder of 2020, reaching $9.427 billion by year-end. Throughout 2021 and 2022, revenues generally grew, peaking in the second quarter of 2022 at $13.422 billion before fluctuating slightly but remaining above $12 billion in subsequent quarters. Revenue levels in 2023 have remained stable, fluctuating between approximately $12 billion and $14 billion, indicating a sustained recovery and relative stabilization compared to the lows recorded in early 2020.
- Net Profit Margin
- The net profit margin reflects the company's profitability challenges and gradual recovery. The margins were deeply negative throughout 2020, with the worst performance in the fourth quarter at -51.25%. Improvement is observed in 2021, with margins becoming less negative, moving from -61.53% in Q1 to -6.67% by Q4. In 2022, the company achieved positive net profit margins in the last quarter (0.26%), with margins continuing to improve into 2023, peaking at 4.98% in the second quarter. Despite some fluctuations in 2023, including a decline to 1.56% by year-end, the overall trend points towards improving profitability and reduced losses relative to revenues.
Return on Equity (ROE)
American Airlines Group Inc., ROE calculation (quarterly data)
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ 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).
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.
- Net Income (Loss)
- The net income figures demonstrate significant volatility across the analyzed quarters. Starting in early 2020, the company experienced substantial net losses, peaking at nearly -$2.4 billion in September 2020. There was a gradual improvement in 2021, with net income turning positive in June and September, reaching up to $169 million, although a notable loss reoccurred in December 2021. In 2022, the company saw a return to positive net income for three consecutive quarters, peaking at $803 million in December. However, in 2023, the trend became inconsistent again, with fluctuating net income amounts, including slight positive and negative values, indicating ongoing uncertainty in profitability.
- Stockholders’ Equity (Deficit)
- Stockholders' equity exhibited a consistent negative trend throughout the entire period. The deficit deepened sharply from -$2.6 billion in March 2020 to a peak deficit of nearly -$8.9 billion by March 2022. There was some recovery thereafter, with the deficit decreasing in magnitude through 2022 and into the first half of 2023, reaching approximately -$4.4 billion in June 2023. However, this improvement was not sustained, as the deficit widened again toward the end of 2023, indicating ongoing challenges in strengthening the company’s equity base.
- Return on Equity (ROE)
- The return on equity data is not provided, which limits the ability to directly assess profitability relative to shareholders’ investment. Given the substantial and persistent equity deficits combined with fluctuating net income, it is likely that the ROE may have been negative or highly variable during these periods, reflecting the company’s financial instability and earnings volatility.
- Overall Financial Trends
- The company has experienced significant financial distress starting in early 2020, likely influenced by external factors impacting revenue and profitability. Although there are some signs of recovery, particularly in 2021 and parts of 2022, the recurring losses and negative equity suggest persistent structural challenges. The fluctuations in net income and continued equity deficits imply that profitability is unstable, and the balance sheet remains weakened. These patterns underscore ongoing financial risks and the need for careful strategic management to restore consistent profitability and strengthen financial position.
Return on Assets (ROA)
American Airlines Group Inc., ROA calculation (quarterly data)
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ 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).
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.
- Net Income (Loss)
- The net income figures display significant volatility across the analyzed quarters. Initially, there are substantial net losses from the first quarter of 2020 through the end of 2020, with losses peaking in the third quarter of 2020. Beginning in the first quarter of 2021, the company shows a trend toward recovery, including a positive net income in the second and third quarters of 2021. However, performance regresses briefly at the end of 2021 before improving markedly in 2022, with consistent positive net income seen in the second, third, and fourth quarters. Early 2023 reflects continued instability with net income fluctuating between positive and negative values, suggesting ongoing challenges to sustained profitability.
- Total Assets
- Total assets exhibit a general upward trend from early 2020 through mid-2021, increasing from approximately 58.6 billion USD to a peak around 72.5 billion USD. Following this peak, the asset base declines gradually over the subsequent quarters, falling back to just above 63 billion USD by the end of 2023. This pattern indicates an initial phase of asset accumulation or investment, followed by a period of contraction or asset reduction.
- Return on Assets (ROA)
- The return on assets shows a deeply negative return during 2020, worsening sharply to around -14% by year-end. There is a notable improvement throughout 2021, where ROA steadily climbs toward less negative figures, reaching nearly -3% by the final quarter of 2021. In 2022, ROA continues this recovery trend, turning positive for the first time late in the year and reaching a peak of nearly 4% in the third quarter. By the end of 2023, however, ROA decreases again to approximately 1.3%, indicating some diminishing efficiency or profitability relative to asset base, though it remains positive overall compared to the earlier periods.