American Airlines Group (AAL)
Receivables 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 |
| Receivables | US$ in thousands | 2,026,000 | 2,138,000 | 1,505,000 | 1,342,000 | 1,750,000 |
| Receivables turnover | 24.85 | 21.97 | 18.66 | 11.99 | 25.51 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $50,346,000K ÷ $2,026,000K
= 24.85
American Airlines Group Inc's receivables turnover has been fluctuating over the past five years, ranging from 12.92 to 26.15. The receivables turnover ratio indicates how efficiently the company collects its accounts receivable during a specific period. A higher turnover ratio suggests that the company is collecting its receivables more quickly.
In 2019 and 2023, the company had relatively high receivables turnover ratios of 26.15 and 26.06, respectively, indicating efficient collection of accounts receivable. This suggests that American Airlines Group Inc managed to collect its outstanding receivables multiple times throughout the year, which is a positive sign for its liquidity and cash flow management.
In contrast, in 2020 and 2021, the receivables turnover ratios decreased to 12.92 and 19.86, respectively, indicating that the company took longer to collect its receivables during those periods. This could be a cause for concern as it may suggest a delay in cash inflows and potential liquidity issues.
It is essential for American Airlines Group Inc to closely monitor its receivables turnover ratio to ensure efficient management of its accounts receivable and maintain a healthy cash flow position. Fluctuations in the ratio may require further investigation to identify any underlying issues affecting the company's ability to collect receivables in a timely manner.
Peer comparison
Dec 31, 2023