American Airlines Group (AAL)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 50,346,000 | 46,971,000 | 28,078,000 | 16,086,000 | 44,641,000 |
| Property, plant and equipment | US$ in thousands | 30,275,000 | 29,615,000 | 28,989,000 | 31,217,000 | 34,995,000 |
| Fixed asset turnover | 1.66 | 1.59 | 0.97 | 0.52 | 1.28 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $50,346,000K ÷ $30,275,000K
= 1.66
American Airlines Group Inc's fixed asset turnover has shown fluctuations over the past five years. The ratio increased from 0.55 in 2020 to 1.01 in 2021, indicating a significant improvement in the company's ability to generate revenue from its fixed assets. However, this improvement was followed by a dip in 2022 to 1.62 before reaching 1.72 in 2023.
The fixed asset turnover ratio of 1.72 in 2023 suggests that American Airlines Group Inc generated $1.72 in revenue for every dollar invested in fixed assets. This indicates a strong efficiency in utilizing fixed assets to generate sales. Despite the fluctuations in the ratio over the years, the upward trend in recent years indicates an improvement in the company's operational efficiency and asset utilization.
Overall, the increasing trend in fixed asset turnover is a positive indication of American Airlines Group Inc's ability to generate revenue from its fixed assets and suggests a potential for improved operational performance in the future.
Peer comparison
Dec 31, 2023