American Airlines Group (AAL)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 30.54% | 31.25% | 31.10% | 28.62% | 25.68% | 22.47% | 19.86% | 14.55% | 7.76% | 20.48% | 4.34% | -21.58% | 2.17% | 31.63% | 43.47% | 49.84% | 53.03% | 52.40% | 52.23% | 52.03% |
| Operating profit margin | 6.03% | 7.41% | 9.68% | 7.51% | 3.42% | -1.28% | -2.29% | -4.46% | -3.77% | -12.07% | -35.79% | -77.43% | -63.21% | -30.19% | -10.74% | 0.33% | 6.82% | 6.52% | 6.29% | 6.00% |
| Pretax margin | 2.23% | 4.14% | 6.80% | 4.56% | 0.39% | -4.66% | -6.35% | -9.31% | -9.08% | -18.00% | -42.70% | -85.43% | -69.47% | -33.96% | -13.58% | -2.05% | 5.02% | 4.67% | 4.56% | 4.31% |
| Net profit margin | 1.63% | 3.17% | 5.19% | 3.53% | 0.27% | -3.71% | -4.95% | -7.24% | -7.10% | -14.00% | -33.21% | -66.53% | -53.89% | -26.47% | -10.65% | -1.73% | 3.75% | 3.58% | 3.49% | 3.27% |
American Airlines Group Inc has demonstrated consistent performance in terms of gross profit margin over the quarters, as it has maintained a 100% gross profit margin throughout the periods analyzed. However, the operating profit margin has varied, with Q2 2023 showing the highest at 9.39% and Q1 2022 the lowest at -10.38%. This indicates some fluctuations in the company's ability to control operating expenses and generate operating income.
The pretax margin has also fluctuated over the quarters, ranging from a low of -8.80% in Q1 2022 to a high of 6.52% in Q2 2023. This indicates variability in the company's ability to generate profit before accounting for taxes.
Similarly, the net profit margin has shown variability, with Q2 2023 recording the highest at 4.98% and Q1 2022 the lowest at -6.84%. This suggests fluctuations in the company's ability to generate net income after accounting for all expenses.
Overall, while American Airlines Group Inc has maintained a strong gross profit margin, its operating, pretax, and net profit margins have shown more volatility, indicating potential challenges in controlling operating expenses and translating revenue into profits consistently. The company may need to focus on improving cost management strategies to enhance its overall profitability in the future.
Return on investment
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 4.81% | 5.72% | 7.30% | 5.64% | 2.48% | -0.83% | -1.31% | -2.18% | -1.59% | -4.08% | -8.64% | -13.38% | -16.81% | -11.43% | -5.42% | 0.24% | 5.11% | 4.75% | 4.49% | 4.33% |
| Return on assets (ROA) | 1.30% | 2.44% | 3.92% | 2.65% | 0.20% | -2.41% | -2.83% | -3.53% | -3.00% | -4.73% | -8.02% | -11.50% | -14.33% | -10.03% | -5.37% | -1.26% | 2.81% | 2.61% | 2.49% | 2.37% |
| Return on total capital | — | — | 18.76% | 15.08% | 7.38% | -0.42% | -2.12% | -4.15% | -2.49% | -10.04% | -18.56% | -28.21% | -40.65% | -26.08% | -13.92% | 0.98% | 14.24% | 12.86% | 13.70% | 13.79% |
| Return on equity (ROE) | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 998.12% | — | — |
American Airlines Group Inc's profitability ratios have shown improvement over the quarters in terms of Operating ROA, ROA, and Return on Total Capital. The Operating ROA has consistently increased from 2.78% in Q4 2022 to 7.39% in Q2 2023, indicating an improvement in the company's ability to generate operating income from its assets. Similarly, ROA has also exhibited a positive trend, starting from 0.20% in Q4 2022 to 3.92% in Q2 2023, reflecting better overall profitability.
Return on Total Capital has shown significant improvement, increasing from 6.03% in Q1 2022 to 16.67% in Q3 2023. This suggests that the company has been more effective in utilizing both debt and equity to generate returns for its capital providers.
However, it is important to note that data on Return on Equity (ROE) is not provided in the table, making it difficult to assess the company's profitability from the perspective of its shareholders. Overall, the improving trend in profitability ratios indicates positive performance and financial health for American Airlines Group Inc.
See also:
American Airlines Group Profitability Ratios (Quarterly Data)