American Airlines Group (AAL)
Quick ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 804,000 | 834,000 | 605,000 | 604,000 | 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 |
| Short-term investments | US$ in thousands | 6,180,000 | 7,638,000 | 7,841,000 | 7,696,000 | 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 |
| Receivables | US$ in thousands | 2,006,000 | 1,820,000 | 2,067,000 | 2,070,000 | 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 |
| Total current liabilities | US$ in thousands | 24,295,000 | 25,532,000 | 24,610,000 | 24,993,000 | 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 |
| Quick ratio | 0.37 | 0.40 | 0.43 | 0.41 | 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 |
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 fluctuations over the years, ranging from 0.24 to 0.89. It measures the company's ability to meet its short-term obligations with its most liquid assets.
In March 2020, the quick ratio was at a low of 0.24, indicating a relatively weak liquidity position. However, the ratio improved significantly by March 2021, reaching 0.87, signifying a better ability to cover short-term liabilities with liquid assets.
Subsequently, there were some fluctuations in the quick ratio but generally maintained above 0.50, indicating the company's ability to meet short-term obligations had improved compared to the initial period.
The quick ratio saw a decrease towards the end of the period, dropping to 0.37 by December 2024. This might indicate a potential liquidity concern that would require monitoring and appropriate management actions.
Overall, the company's quick ratio trend suggests an improvement in liquidity from the initial periods but a slight decline towards the end of the reported period, emphasizing the importance of maintaining a healthy liquidity position for sustainable operations.
Peer comparison
Dec 31, 2024