American Airlines Group (AAL)

Debt-to-assets ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Long-term debt	US$ in thousands	29,813,000	3,700,000	34,903,000	37,323,000	32,021,000
Total assets	US$ in thousands	61,783,000	63,058,000	64,716,000	66,467,000	62,008,000
Debt-to-assets ratio		0.48	0.06	0.54	0.56	0.52

December 31, 2024 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $29,813,000K ÷ $61,783,000K
= 0.48

The debt-to-assets ratio of American Airlines Group has shown some fluctuations over the years. As of December 31, 2020, the ratio stood at 0.52, indicating that 52% of the company's assets were financed by debt. This ratio increased to 0.56 by December 31, 2021, suggesting a higher reliance on debt to fund assets.

In the following years, the ratio saw further fluctuation, reaching 0.54 by December 31, 2022, before experiencing a significant drop to 0.06 by December 31, 2023. This sharp decline could be due to various factors, such as reduced debt levels or increased asset base.

By December 31, 2024, the debt-to-assets ratio of American Airlines Group had increased to 0.48, indicating a return to a higher proportion of assets financed by debt compared to the previous year. Overall, while the company has experienced some variability in its debt-to-assets ratio, it is essential to monitor this metric to assess the company's financial leverage and risk management strategies.