American Airlines Group (AAL)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 13,154,000 | 13,572,000 | 15,269,000 | 17,336,000 | 11,095,000 |
| Total current liabilities | US$ in thousands | 24,295,000 | 22,062,000 | 21,496,000 | 19,006,000 | 16,569,000 |
| Current ratio | 0.54 | 0.62 | 0.71 | 0.91 | 0.67 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $13,154,000K ÷ $24,295,000K
= 0.54
Based on the data provided, American Airlines Group's current ratio has been fluctuating over the past five years. The current ratio measures the company's ability to cover its short-term liabilities with its current assets. In December 2020, the current ratio was 0.67, indicating that the company had $0.67 in current assets for every $1 in current liabilities.
Over the subsequent years, we observe some variations in the current ratio: 0.91 in December 2021, 0.71 in December 2022, 0.62 in December 2023, and 0.54 in December 2024. The increasing trend from 2020 to 2021 suggests an improvement in the company's short-term liquidity position. However, the decreasing trend from 2021 to 2024 indicates a declining ability to cover short-term obligations with current assets.
The current ratio below 1 in all years implies that American Airlines Group may have challenges in meeting its short-term obligations with its current asset levels. Investors and creditors may closely monitor this trend to assess the company's liquidity risk and financial health.
Peer comparison
Dec 31, 2024