American Airlines Group (AAL)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 3,700,000 | 34,903,000 | 37,323,000 | 32,021,000 | 23,645,000 |
| Total assets | US$ in thousands | 63,058,000 | 64,716,000 | 66,467,000 | 62,008,000 | 59,995,000 |
| Debt-to-assets ratio | 0.06 | 0.54 | 0.56 | 0.52 | 0.39 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $3,700,000K ÷ $63,058,000K
= 0.06
The debt-to-assets ratio of American Airlines Group Inc has shown a slight decrease from 0.55 in 2022 to 0.52 in 2023. This suggests that the company's proportion of debt relative to its total assets has improved modestly. However, when compared to the previous years, the ratio has fluctuated, with values of 0.57 in 2021, 0.53 in 2020, and 0.41 in 2019.
A decreasing trend in the debt-to-assets ratio can indicate improved financial health and risk management, as the company may be reducing its reliance on debt financing or increasing its asset base. On the other hand, an increasing trend in the ratio could signal a higher level of financial leverage and potential risk.
Overall, while the slight decrease in the debt-to-assets ratio from 2022 to 2023 is a positive indicator, it is essential to consider the historical trends and industry benchmarks to gain a comprehensive understanding of American Airlines Group Inc's debt management and financial stability.
Peer comparison
Dec 31, 2023