American Airlines Group (AAL)

Debt-to-capital ratio

		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
Long-term debt	US$ in thousands	29,813,000	31,110,000	31,191,000	31,827,000	3,700,000	3,700,000	34,057,000	34,459,000	34,903,000	36,158,000	36,354,000	37,093,000	37,323,000	31,911,000	39,421,000	39,124,000	32,021,000	32,203,000	27,307,000	23,181,000
Total stockholders’ equity	US$ in thousands	-3,977,000	-4,854,000	-4,746,000	-5,500,000	-5,202,000	-5,136,000	-4,385,000	-5,771,000	-5,799,000	-7,893,000	-8,422,000	-8,940,000	-7,340,000	-7,437,000	-7,667,000	-7,945,000	-6,867,000	-5,528,000	-3,169,000	-2,636,000
Debt-to-capital ratio		1.15	1.18	1.18	1.21	—	—	1.15	1.20	1.20	1.28	1.30	1.32	1.24	1.30	1.24	1.25	1.27	1.21	1.13	1.13

December 31, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $29,813,000K ÷ ($29,813,000K + $-3,977,000K)
= 1.15

The debt-to-capital ratio of American Airlines Group has fluctuated over the past few years, ranging from 1.13 to 1.32. This ratio indicates the proportion of the company's capital structure that is financed by debt. A higher ratio suggests that a larger portion of the company's capital is funded by debt, which can indicate higher financial risk.

From December 31, 2020 to March 31, 2023, the debt-to-capital ratio remained relatively stable, hovering around 1.20 to 1.32. However, from June 30, 2023 to December 31, 2024, the ratio decreased to as low as 1.15. A decreasing debt-to-capital ratio may indicate that the company is reducing its reliance on debt financing in favor of other sources of capital, such as equity. This could be a positive sign for investors as it may signify improved financial stability and lower risk.

The fact that the ratio was unavailable or not disclosed for the most recent periods, September 30, 2023 and December 31, 2023, may raise concerns about transparency or data availability. It would be important to monitor future financial reports to assess any significant changes in the debt-to-capital ratio, as it can provide insights into the company's leverage and financial health.