American Airlines Group (AAL)

Fixed asset turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Revenue (ttm)	US$ in thousands	53,657,000	52,300,000	51,598,000	50,771,000	50,347,000	50,719,000	50,737,000	50,184,000	46,971,000	43,308,000	38,838,000	32,876,000	28,077,000	23,149,000	17,489,000	11,865,000	16,486,000	23,772,000	32,566,000	42,883,000
Property, plant and equipment	US$ in thousands	30,447,000	30,846,000	31,044,000	31,157,000	30,275,000	30,318,000	30,271,000	30,144,000	29,615,000	29,987,000	29,994,000	29,858,000	28,989,000	29,797,000	30,205,000	30,897,000	31,217,000	32,256,000	33,351,000	34,206,000
Fixed asset turnover		1.76	1.70	1.66	1.63	1.66	1.67	1.68	1.66	1.59	1.44	1.29	1.10	0.97	0.78	0.58	0.38	0.53	0.74	0.98	1.25

December 31, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $53,657,000K ÷ $30,447,000K
= 1.76

Fixed asset turnover is a financial ratio that measures a company's ability to generate revenue from its fixed assets. In the case of American Airlines Group, the fixed asset turnover has shown fluctuations over the analyzed period.

From March 2020 to December 2021, the fixed asset turnover decreased steadily from 1.25 to 0.53, indicating a decline in the company's efficiency in generating revenue from its fixed assets. However, starting from March 2022, there was a turnaround in the trend, with the fixed asset turnover increasing consistently each quarter.

The ratio reached its lowest point at 0.38 in March 2021 and its highest level at 1.76 by December 2024. This improvement suggests that American Airlines Group has been able to enhance its operational efficiency and generate more revenue relative to its investment in fixed assets during this period.

Overall, the increasing trend in fixed asset turnover from 2022 to 2024 indicates a positive shift in the company's performance in utilizing its fixed assets to generate revenue.