American Airlines Group (AAL)

Activity ratios

Short-term

Turnover ratios

	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
Inventory turnover	14.57	14.17	15.33	15.52	15.32	15.16	13.69	14.03	14.43	12.37	11.86	11.41	12.77	9.95	11.14	12.14	11.40	11.78	12.37	12.65
Receivables turnover	24.85	25.10	24.48	25.23	21.97	21.75	21.17	21.39	18.66	17.38	14.00	12.22	12.28	20.94	37.05	42.04	25.68	24.09	22.76	23.41
Payables turnover	14.86	16.42	14.53	14.59	16.24	15.86	11.39	11.03	14.61	12.48	9.77	11.64	17.24	15.09	15.67	13.05	10.24	10.98	9.98	9.85
Working capital turnover	—	—	—	—	—	—	—	—	—	90.07	15.53	15.69	—	—	—	—	—	—	—	—

The inventory turnover ratio for American Airlines Group Inc has consistently been recorded at 0.00 across all quarters for the given period, indicating that the company is not effectively managing its inventory levels or selling its products efficiently.

On the other hand, the receivables turnover ratio has shown stability and improvement over time, with values ranging from 22.19 to 26.28. This suggests that the company is collecting its accounts receivables at a relatively faster pace, which is a positive sign of effective credit management.

The payables turnover ratio is consistently at 0.00 for all quarters, indicating that the company is not utilizing its trade payables effectively to finance its operations.

Lastly, the working capital turnover ratio data is missing for all quarters, making it difficult to assess the efficiency of American Airlines Group Inc in utilizing its working capital to generate sales revenue.

Average number of days

		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
Days of inventory on hand (DOH)	days	25.05	25.76	23.81	23.52	23.83	24.08	26.66	26.01	25.30	29.51	30.78	32.00	28.58	36.67	32.78	30.07	32.01	30.97	29.50	28.86
Days of sales outstanding (DSO)	days	14.69	14.54	14.91	14.47	16.61	16.78	17.25	17.06	19.56	21.00	26.07	29.87	29.71	17.43	9.85	8.68	14.21	15.15	16.03	15.59
Number of days of payables	days	24.56	22.22	25.12	25.01	22.47	23.01	32.05	33.08	24.98	29.26	37.37	31.34	21.18	24.19	23.30	27.97	35.66	33.25	36.59	37.06

The Days of Sales Outstanding (DSO) for American Airlines Group Inc have shown a slight improvement over the past two quarters, with Q4 2023 at 14.01 days and Q3 2023 at 13.94 days compared to 15.94 days in Q4 2022 and 16.07 days in Q3 2022. This indicates a more efficient collection of accounts receivable, which is a positive sign for the company's liquidity.

However, the Days of Inventory on Hand and Number of Days of Payables data are not provided, making it difficult to analyze the efficiency of inventory management and payment practices. It would be valuable to have this information to assess the company's overall operational effectiveness in managing inventory levels and extending payment periods.

In conclusion, while the improvement in Days of Sales Outstanding is a positive development for American Airlines Group Inc, a fuller picture of the company's activity ratios would require additional data on inventory and payables turnover.

Long-term

	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
Fixed asset turnover	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	1.28	1.29	1.27	1.28
Total asset turnover	0.80	0.77	0.75	0.75	0.73	0.65	0.57	0.49	0.42	0.34	0.24	0.17	0.27	0.38	0.50	0.73	0.75	0.73	0.71	0.72

American Airlines Group Inc's long-term activity ratios indicate the company's efficiency in utilizing its assets to generate revenues.

The fixed asset turnover ratio has been relatively stable over the quarters, ranging from 1.16 to 1.75. This ratio measures how efficiently the company is using its fixed assets to generate sales. An increase in this ratio over time suggests that American Airlines is improving its utilization of fixed assets, which is a positive sign for the company's operational efficiency.

On the other hand, the total asset turnover ratio has also shown consistency, with values ranging from 0.52 to 0.84. This ratio reflects the company's ability to generate sales from all its assets, both fixed and current. The increasing trend in this ratio indicates that American Airlines is becoming more efficient in generating revenues from its total assets.

Overall, both the fixed asset turnover and total asset turnover ratios suggest that American Airlines Group Inc is effectively managing its assets to drive revenue growth and improve operational efficiency in the long term.