American Airlines Group (AAL)

Quick ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash	US$ in thousands	804,000	578,000	440,000	273,000	245,000
Short-term investments	US$ in thousands	6,180,000	7,000,000	8,525,000	12,127,000	6,655,000
Receivables	US$ in thousands	2,006,000	2,026,000	2,138,000	1,505,000	1,342,000
Total current liabilities	US$ in thousands	24,295,000	22,062,000	21,496,000	19,006,000	16,569,000
Quick ratio		0.37	0.44	0.52	0.73	0.50

December 31, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($804,000K + $6,180,000K + $2,006,000K) ÷ $24,295,000K
= 0.37

The quick ratio of American Airlines Group has shown some fluctuations over the years. As of December 31, 2020, the quick ratio was 0.50, indicating that the company had 50 cents in liquid assets to cover each dollar of current liabilities. By December 31, 2021, the quick ratio improved to 0.73, suggesting a better liquidity position. However, the ratio decreased to 0.52 by December 31, 2022, and further dropped to 0.44 by December 31, 2023. This decline may raise concerns about the company's ability to meet its short-term obligations with its most liquid assets. By December 31, 2024, the quick ratio decreased to 0.37, signaling a potential liquidity strain. Overall, the trend in the quick ratio of American Airlines Group shows some variability, indicating potential challenges in managing short-term liquidity needs.