American Airlines Group (AAL)

Operating return on assets (Operating ROA)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Operating income	US$ in thousands	2,614,000	3,034,000	1,607,000	-1,059,000	-10,421,000
Total assets	US$ in thousands	61,783,000	63,058,000	64,716,000	66,467,000	62,008,000
Operating ROA		4.23%	4.81%	2.48%	-1.59%	-16.81%

December 31, 2024 calculation

Operating ROA = Operating income ÷ Total assets
= $2,614,000K ÷ $61,783,000K
= 4.23%

From the data provided, American Airlines Group's operating return on assets (ROA) has shown a significant improvement over the years.

At December 31, 2020, the operating ROA was -16.81%, indicating that the company was not effectively utilizing its assets to generate operating income, potentially due to challenges such as high operating expenses or low revenue generation.

By December 31, 2021, the operating ROA improved to -1.59%, signaling a positive shift in the company's asset management and operational efficiency. However, the negative value suggests that there was still room for enhancement in utilizing assets to generate operating profits effectively.

The positive trend continued with the operating ROA reaching 2.48% by December 31, 2022, indicating that American Airlines Group was becoming more efficient in generating operating income relative to its assets. This improvement reflects management's efforts to optimize asset utilization and operational performance.

Further progress was seen by December 31, 2023, with the operating ROA increasing to 4.81%, demonstrating a substantial enhancement in the company's ability to generate operating profit from its assets. This suggests that American Airlines Group was on a positive trajectory in terms of operational efficiency and asset management.

By December 31, 2024, the operating ROA dipped slightly to 4.23%, but it remained at a relatively high level compared to the initial years. Overall, the trend indicates that American Airlines Group has been successful in improving its operational performance and efficiency in utilizing assets to generate operating income over the analyzed period.