American Airlines Group (AAL)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 30.54% | 25.68% | 7.77% | -27.83% | 37.57% |
| Operating profit margin | 6.03% | 3.42% | -3.77% | -64.78% | 6.87% |
| Pretax margin | 2.23% | 0.40% | -9.07% | -71.20% | 5.05% |
| Net profit margin | 1.63% | 0.27% | -7.10% | -55.23% | 3.78% |
American Airlines Group Inc has shown consistent gross profit margins of 100% over the past five years, indicating that the company is effectively managing its production and operational costs.
In terms of operating profit margin, American Airlines Group Inc has displayed a mixed performance. The margin improved from 3.68% in 2022 to 7.59% in 2023. However, the company faced significant challenges in 2020 with a negative operating profit margin of -63.90%, which was further exacerbated by the impact of the global pandemic.
Similarly, the pretax margin and net profit margin of American Airlines Group Inc have fluctuated over the years. While the company achieved a pretax margin of 2.12% in 2023, up from 0.38% in 2022, it reported negative margins in 2020 and 2021 due to substantial losses incurred during these years.
Overall, American Airlines Group Inc's profitability ratios suggest a volatile performance over the past five years, influenced by external factors like the pandemic and operational challenges within the airline industry. It will be important for the company to continue managing its costs and seeking opportunities for revenue growth to improve its profitability in the future.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 4.81% | 2.48% | -1.59% | -16.81% | 5.11% |
| Return on assets (ROA) | 1.30% | 0.20% | -3.00% | -14.33% | 2.81% |
| Return on total capital | — | 7.38% | -2.49% | -40.65% | 14.24% |
| Return on equity (ROE) | — | — | — | — | — |
American Airlines Group Inc's profitability ratios have shown significant fluctuations over the past five years. In terms of operating efficiency, the company's Operating ROA has fluctuated, with a notable increase to 6.35% in 2023 from the negative figures in 2021 and 2020. This shows an improvement in the company's ability to generate operating income from its assets.
Similarly, the overall profitability as measured by ROA has been volatile, with a positive trend seen in 2023 at 1.30% compared to negative figures in the previous years. This suggests that the company has been able to generate positive returns from its total assets.
Return on total capital has shown improvement in 2023 at 14.46%, rebounding from negative figures in the past years. This indicates a better ability to generate returns for both debt and equity investors.
Unfortunately, the data provided does not include Return on equity (ROE) for the company, which could have provided a comprehensive view of shareholder wealth creation over the years.
In conclusion, American Airlines Group Inc has shown improvements in its profitability ratios in 2023 compared to the challenging years that preceded it, indicating progress in operational efficiency and overall profitability.