American Airlines Group (AAL)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | -5,202,000 | -5,799,000 | -7,340,000 | -6,867,000 | -118,000 |
| Debt-to-capital ratio | — | 1.20 | 1.24 | 1.27 | 1.01 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $3,700,000K ÷ ($3,700,000K + $-5,202,000K)
= —
The debt-to-capital ratio of American Airlines Group Inc has exhibited a slight decrease in recent years, declining from 1.27 in 2020 to 1.19 in 2023. This indicates that the company has been able to manage its debt relative to its total capital more effectively. However, it is worth noting that the ratio has fluctuated over the past five years, with a notable spike in 2021 to 1.24 before returning to its previous levels. Overall, a debt-to-capital ratio above 1 suggests that the company relies more on debt financing than equity, which may indicate a higher financial risk due to increased leverage in its capital structure. Further analysis of the trend and comparison with industry benchmarks can provide additional insights into the company's financial health and risk profile.
Peer comparison
Dec 31, 2023