American Airlines Group (AAL)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 33.18% | 31.22% | 30.08% | 30.24% | 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% |
| Operating profit margin | 4.87% | 4.08% | 3.54% | 5.13% | 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% |
| Pretax margin | 2.15% | 0.75% | -0.08% | 1.36% | 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% |
| Net profit margin | 1.58% | 0.53% | -0.23% | 0.98% | 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% |
American Airlines Group's profitability ratios have shown mixed performance over the past few years. The gross profit margin has fluctuated, starting at a high of 49.84% in March 2020, declining significantly to 2.17% in December 2020, and gradually improving to 33.18% by December 2024.
The operating profit margin reflects a challenging period for the company, with negative margins recorded from June 2020 to December 2021. However, there was a turnaround in profitability from March 2022 onwards, with positive margins achieved, reaching 4.87% by December 2024.
The pretax margin also exhibited a similar trend, with negative percentages reported up to December 2022, followed by a shift to positive margins in subsequent quarters, indicating a recovery in the company's financial performance.
The net profit margin, which reflects bottom-line profitability, had negative figures until December 2022, signaling financial losses. However, the company managed to turn this around with positive margins from March 2023 onwards, reaching 1.58% by December 2024.
Overall, the improving trend in profitability ratios from 2022 onwards indicates a positive turnaround in American Airlines Group's financial performance, potentially driven by strategic initiatives or improved market conditions.
Return on investment
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 4.23% | 3.36% | 2.84% | 4.04% | 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% |
| Return on assets (ROA) | 1.37% | 0.43% | -0.19% | 0.78% | 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% |
| Return on total capital | 10.42% | 8.03% | 7.06% | 10.61% | — | — | 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% |
| Return on equity (ROE) | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
American Airlines Group's profitability ratios show a fluctuating trend over the specified periods.
1. Operating return on assets (Operating ROA) increased from 0.24% in March 2020 to reach a peak of 7.30% in June 2023 before slightly declining to 4.23% by December 2024. This indicates the company's ability to generate profits from its operating activities relative to its assets improved significantly over the period.
2. Return on assets (ROA) also followed a similar pattern, starting with negative figures and gradually improving to 1.37% by December 2024. This ratio measures the company's profit generation efficiency in relation to its total assets, and the positive values by the end of the period indicate a better utilization of assets to generate earnings.
3. Return on total capital shows a particularly interesting trend, with negative values for most of the period up to December 2022. However, it turned positive thereafter, reaching 10.42% by December 2024. This ratio reflects the effectiveness of the company in generating returns from all sources of capital employed in its operations.
4. Return on equity (ROE) data is missing, suggesting that the company may not have reported this metric or it might be negative. ROE is a key profitability measure that shows how effectively the company is utilizing shareholder equity to generate profits. In this case, the absence of data implies a limited view of the company's performance from the perspective of equity holders.
Overall, American Airlines Group's profitability ratios exhibit a mix of improvements and challenges, with the company showing positive signs in terms of generating returns on assets and total capital, while potentially facing specific issues related to return on equity.
See also:
American Airlines Group Profitability Ratios (Quarterly Data)