American Airlines Group (AAL)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 3,034,000 | 1,607,000 | -1,059,000 | -10,421,000 | 3,065,000 |
| Total assets | US$ in thousands | 63,058,000 | 64,716,000 | 66,467,000 | 62,008,000 | 59,995,000 |
| Operating ROA | 4.81% | 2.48% | -1.59% | -16.81% | 5.11% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $3,034,000K ÷ $63,058,000K
= 4.81%
American Airlines Group Inc's operating return on assets (operating ROA) has shown a fluctuating trend over the past five years. In 2023, the operating ROA improved significantly to 6.35%, indicating that the company generated 6.35 cents of operating profit for every dollar of assets employed in its operations. This represents a strong performance compared to the prior year, where the operating ROA was 2.78%.
The positive increase in operating ROA in 2023 suggests improved operational efficiency and profitability relative to the previous year. It indicates that the company has managed its assets more effectively to generate operating income, which is a positive sign for investors and stakeholders.
However, it is important to note that the operating ROA was negative in both 2021 and 2020, at -7.62% and -17.87%, respectively. These negative values signify that the company's operating losses exceeded the value generated by its assets during those years, highlighting potential financial difficulties and inefficiencies in operations.
The return to positive operating ROA in 2023 after two consecutive years of negative performance demonstrates a potential turnaround in the company's operational performance. It suggests that American Airlines Group Inc may have implemented strategic initiatives to enhance profitability and asset utilization, leading to a more favorable return on assets.
Overall, a continued focus on improving operating efficiency and effectively managing assets will be crucial for American Airlines Group Inc to sustain and further enhance its operating return on assets in the future.
Peer comparison
Dec 31, 2023