American Airlines Group (AAL)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | 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 |
| Receivables | US$ in thousands | 2,026,000 | 2,138,000 | 1,505,000 | 1,342,000 | 1,750,000 |
| Total current liabilities | US$ in thousands | 22,062,000 | 21,496,000 | 19,006,000 | 16,569,000 | 18,311,000 |
| Quick ratio | 0.44 | 0.52 | 0.73 | 0.50 | 0.30 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($578,000K
+ $7,000,000K
+ $2,026,000K)
÷ $22,062,000K
= 0.44
The quick ratio of American Airlines Group Inc has exhibited fluctuations over the past five years, ranging from 0.34 to 0.77. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets, excluding inventory.
In 2021, the quick ratio was relatively strong at 0.77, indicating that American Airlines had a higher proportion of liquid assets to cover its current liabilities. This suggests that the company had a better ability to meet its short-term obligations without relying heavily on inventory.
However, in 2020 and 2019, the quick ratio dropped to 0.54 and 0.34, respectively, indicating a lower level of liquidity compared to 2021. A quick ratio below 1 may raise concerns about the company's ability to meet its short-term obligations.
The decrease in the quick ratio in 2020 and 2019 could signal potential liquidity challenges or inefficiencies in managing current assets and liabilities during those years.
Overall, the fluctuating trends in the quick ratio of American Airlines Group Inc over the past five years highlight the importance of monitoring liquidity levels and managing short-term obligations effectively to ensure financial stability and sustainability.
Peer comparison
Dec 31, 2023