American Airlines Group (AAL)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 3,266,000 | 2,148,000 | -748,000 | -10,226,000 | 3,351,000 |
| Long-term debt | US$ in thousands | 3,700,000 | 34,903,000 | 37,323,000 | 32,021,000 | 23,645,000 |
| Total stockholders’ equity | US$ in thousands | -5,202,000 | -5,799,000 | -7,340,000 | -6,867,000 | -118,000 |
| Return on total capital | — | 7.38% | -2.49% | -40.65% | 14.24% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $3,266,000K ÷ ($3,700,000K + $-5,202,000K)
= —
American Airlines Group Inc's return on total capital has shown significant fluctuations over the past five years. In 2023, the return on total capital improved to 14.46%, representing a strong performance compared to the previous year. The positive trend indicates that the company has been able to generate decent returns relative to the total capital employed in its operations.
However, in 2022, the return on total capital was 6.03%, reflecting a lower profitability compared to 2023. The company faced challenges in generating higher returns on its total capital in that year.
In 2021, American Airlines Group Inc reported a negative return on total capital of -16.49%, indicating that the company was not able to generate profits sufficient to cover the total capital employed. This could be a concerning sign for investors and stakeholders.
In 2020, the return on total capital was significantly negative at -43.06%, reflecting a period of financial difficulty and poor performance for the company. The negative return suggests that the company's operations were not generating sufficient profits to cover its capital costs.
Lastly, in 2019, the return on total capital was a positive 15.29%, indicating a relatively strong performance during that period. The company was able to generate profits that exceeded the total capital investment, which is a positive sign for its financial health.
Overall, American Airlines Group Inc's return on total capital has varied widely over the past five years, indicating the company's susceptibility to external factors impacting its profitability and operational efficiency. Investors and analysts should closely monitor this metric to assess the company's ability to generate returns on its capital investments.
Peer comparison
Dec 31, 2023