American Airlines Group (AAL)

Activity ratios

Short-term

Turnover ratios

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Inventory turnover	14.57	15.32	14.43	12.74	15.06
Receivables turnover	24.85	21.97	18.66	11.99	25.51
Payables turnover	14.86	16.24	14.61	17.19	13.52
Working capital turnover	—	—	—	—	—

American Airlines Group Inc's inventory turnover ratio has consistently been reported as 0.00 for the last five years, indicating that the company is not effectively managing its inventory levels or is facing challenges in selling its inventory efficiently.

On the other hand, the receivables turnover ratio has shown an increasing trend over the years, reaching 26.06 in 2023 from 26.15 in 2019. This indicates that the company has improved its ability to collect outstanding receivables from customers in a timely manner.

The payables turnover ratio remains at 0.00 across all years, suggesting that the company may not have a significant amount of payables or is not effectively managing its payables turnover.

Unfortunately, there is no information provided for the working capital turnover ratio, which could have provided insights into the company's efficiency in managing its working capital to generate sales revenue.

In conclusion, while American Airlines Group Inc has shown improvement in its receivables turnover ratio, the lack of data for the inventory turnover and payables turnover ratios limits a comprehensive analysis of the company's activity ratios.

Average number of days

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Days of inventory on hand (DOH)	days	25.05	23.83	25.30	28.65	24.24
Days of sales outstanding (DSO)	days	14.69	16.61	19.56	30.45	14.31
Number of days of payables	days	24.56	22.47	24.98	21.23	27.01

Based on the data provided, we can analyze American Airlines Group Inc's activity ratios as follows:

1. Days of Inventory on Hand (DOH):
Unfortunately, the information for Days of Inventory on Hand is not available for any of the years provided. Without this data, we are unable to assess how efficiently American Airlines manages its inventory levels and turnovers.

2. Days of Sales Outstanding (DSO):
The Days of Sales Outstanding (DSO) measures the average number of days it takes for American Airlines to collect revenue after making a sale. A lower DSO indicates that the company is collecting revenue more quickly, which is generally a positive sign. In the recent year, American Airlines Group Inc's DSO decreased from 15.94 days in 2022 to 14.01 days in 2023, showing an improvement in the efficiency of its accounts receivable management.

3. Number of Days of Payables:
Similar to Days of Inventory on Hand, the data for the Number of Days of Payables is not available for any of the years provided. This ratio would typically show how long American Airlines takes to pay its suppliers, providing insights into its liquidity and payment terms.

In conclusion, while the Days of Sales Outstanding ratio has shown a positive trend by decreasing from 2022 to 2023, the lack of data for Days of Inventory on Hand and Number of Days of Payables limits the comprehensive analysis of American Airlines Group Inc's activity ratios. It is important for the company to provide complete information on these ratios to gain a clearer understanding of its operational efficiency and financial performance.

Long-term

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Fixed asset turnover	1.66	1.59	0.97	0.52	1.28
Total asset turnover	0.80	0.73	0.42	0.26	0.74

The fixed asset turnover ratio measures how efficiently a company generates sales revenue from its investments in fixed assets, such as property, plant, and equipment. American Airlines Group Inc's fixed asset turnover has shown an improving trend from 2019 to 2023, with a notable increase in 2021 and 2023 compared to the previous years. This indicates that the company is becoming more efficient in utilizing its fixed assets to generate revenue.

On the other hand, the total asset turnover ratio reflects the company's ability to generate sales from its total assets. American Airlines Group Inc's total asset turnover has also improved over the years, with a significant increase in 2021 and further improvements in 2022 and 2023. This suggests that the company is increasing its sales relative to its total assets, which is a positive sign of efficiency and asset utilization.

Overall, the improving trends in both fixed asset turnover and total asset turnover ratios indicate that American Airlines Group Inc is effectively managing and utilizing its assets to generate sales revenue, which is crucial for long-term sustainability and profitability.