American Airlines Group (AAL)
Total 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 |
| Total assets | US$ in thousands | 63,058,000 | 64,716,000 | 66,467,000 | 62,008,000 | 59,995,000 |
| Total asset turnover | 0.80 | 0.73 | 0.42 | 0.26 | 0.74 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $50,346,000K ÷ $63,058,000K
= 0.80
Total asset turnover is a financial ratio that measures a company's efficiency in generating sales revenue from its total assets. The higher the total asset turnover, the more effectively the company is utilizing its assets to generate sales.
By analyzing the data provided for American Airlines Group Inc over the past five years, we see a fluctuating trend in total asset turnover. In 2023, the total asset turnover stood at 0.84, indicating that for every dollar of total assets, the company generated $0.84 in sales revenue. This represents an improvement from the previous year, which had a total asset turnover of 0.76.
Looking back at 2021 and 2020, the total asset turnover was significantly lower at 0.45 and 0.28, respectively. This suggests that American Airlines Group Inc was less efficient in using its assets to generate sales during those years.
Notably, in 2019, the total asset turnover was at the same level as in 2023, at 0.76. This indicates a return to a previous level of efficiency in asset utilization.
Overall, the trend in total asset turnover for American Airlines Group Inc shows variability over the years, with improvements in recent periods compared to lower efficiency in asset utilization observed in 2021 and 2020. It is essential for the company to continue monitoring and managing its assets effectively to ensure sustainable growth and profitability in the future.
Peer comparison
Dec 31, 2023