American Airlines Group (AAL)
Quick ratio
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 578,000 | 577,000 | 614,000 | 452,000 | 440,000 | 332,000 | 401,000 | 376,000 | 273,000 | 293,000 | 325,000 | 277,000 | 245,000 | 253,000 | 462,000 | 474,000 | 280,000 | 312,000 | 319,000 | 337,000 |
| Short-term investments | US$ in thousands | 7,000,000 | 10,005,000 | 11,447,000 | 11,041,000 | 8,525,000 | 10,900,000 | 12,121,000 | 12,108,000 | 12,127,000 | 14,243,000 | 17,625,000 | 13,762,000 | 6,655,000 | 8,031,000 | 9,351,000 | 3,102,000 | 3,546,000 | 4,856,000 | 5,088,000 | 4,012,000 |
| Receivables | US$ in thousands | 2,026,000 | 2,021,000 | 2,073,000 | 1,989,000 | 2,138,000 | 1,991,000 | 1,835,000 | 1,537,000 | 1,505,000 | 1,332,000 | 1,249,000 | 971,000 | 1,342,000 | 1,135,000 | 879,000 | 1,020,000 | 1,750,000 | 1,850,000 | 1,943,000 | 1,876,000 |
| Total current liabilities | US$ in thousands | 22,062,000 | 24,380,000 | 24,316,000 | 24,590,000 | 21,496,000 | 21,970,000 | 22,770,000 | 21,866,000 | 19,006,000 | 18,938,000 | 21,521,000 | 17,333,000 | 16,569,000 | 16,584,000 | 18,000,000 | 19,213,000 | 18,311,000 | 19,560,000 | 20,123,000 | 19,849,000 |
| Quick ratio | 0.44 | 0.52 | 0.58 | 0.55 | 0.52 | 0.60 | 0.63 | 0.64 | 0.73 | 0.84 | 0.89 | 0.87 | 0.50 | 0.57 | 0.59 | 0.24 | 0.30 | 0.36 | 0.37 | 0.31 |
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 been fluctuating over the past eight quarters, ranging from 0.47 to 0.68. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets. A quick ratio below 1.0 indicates that the company may have difficulty meeting its short-term liabilities with its current liquid assets.
From the data provided, the quick ratio has generally been below 1.0, indicating that American Airlines Group Inc may at times struggle to cover its short-term obligations solely with its most liquid assets. The decreasing trend observed from Q1 2022 to Q4 2023 suggests that the company's liquidity position may have weakened over this period. It is important for investors and creditors to closely monitor the quick ratio to assess the company's ability to handle its short-term financial commitments.
Peer comparison
Dec 31, 2023