American Airlines Group (AAL)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 578,000 | 440,000 | 273,000 | 245,000 | 280,000 |
| Short-term investments | US$ in thousands | 7,000,000 | 8,525,000 | 12,127,000 | 6,655,000 | 3,546,000 |
| Total current liabilities | US$ in thousands | 22,062,000 | 21,496,000 | 19,006,000 | 16,569,000 | 18,311,000 |
| Cash ratio | 0.34 | 0.42 | 0.65 | 0.42 | 0.21 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($578,000K
+ $7,000,000K)
÷ $22,062,000K
= 0.34
The cash ratio of American Airlines Group Inc has fluctuated over the past five years, as follows:
- Dec 31, 2023: 0.37
- Dec 31, 2022: 0.46
- Dec 31, 2021: 0.69
- Dec 31, 2020: 0.45
- Dec 31, 2019: 0.24
The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher ratio indicates a greater ability to cover short-term obligations.
Based on the data provided, the trend in American Airlines' cash ratio shows variability, with a significant decrease from 0.69 in 2021 to 0.37 in 2023. This decrease may suggest that the company's ability to cover its short-term liabilities with its available cash and cash equivalents has declined over the years.
It is important to further analyze the company's financial stability and liquidity position in conjunction with other financial ratios and factors to gain a comprehensive understanding of its financial health.
Peer comparison
Dec 31, 2023