American Airlines Cash Flow from Operations vs. Return On Asset

AAL Stock  USD 15.30  0.38  2.55%   
Based on American Airlines' profitability indicators, American Airlines Group is performing exceptionally good at this time. It has a great probability to showcase excellent profitability results in April. Profitability indicators assess American Airlines' ability to earn profits and add value for shareholders. Days Of Sales Outstanding is expected to rise to 23.80 this year, although the value of Price To Sales Ratio will most likely fall to 0.14. At this time, American Airlines' Net Income From Continuing Ops is quite stable compared to the past year. Net Income Applicable To Common Shares is expected to rise to about 120 M this year, although the value of Total Other Income Expense Net is projected to rise to (2.7 B).
For American Airlines profitability analysis, we use financial ratios and fundamental drivers that measure the ability of American Airlines to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well American Airlines Group utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between American Airlines's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of American Airlines Group over time as well as its relative position and ranking within its peers.
  
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Is American Airlines' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of American Airlines. If investors know American will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about American Airlines listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.97)
Earnings Share
1.21
Revenue Per Share
80.764
Quarterly Revenue Growth
(0.01)
Return On Assets
0.0396
The market value of American Airlines is measured differently than its book value, which is the value of American that is recorded on the company's balance sheet. Investors also form their own opinion of American Airlines' value that differs from its market value or its book value, called intrinsic value, which is American Airlines' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because American Airlines' market value can be influenced by many factors that don't directly affect American Airlines' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between American Airlines' value and its price as these two are different measures arrived at by different means. Investors typically determine if American Airlines is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, American Airlines' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

American Airlines Return On Asset vs. Cash Flow from Operations Fundamental Analysis

American Return On Asset vs. Cash Flow from Operations

American Airlines

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Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.

American Airlines

Return On Asset

 = 

Net Income

Total Assets

 = 
0.0396
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.

American Return On Asset Comparison

American Airlines is currently under evaluation in return on asset category among related companies.

Use American Airlines in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if American Airlines position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in American Airlines will appreciate offsetting losses from the drop in the long position's value.

American Airlines Pair Trading

American Airlines Group Pair Trading Analysis

The ability to find closely correlated positions to American Airlines could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace American Airlines when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back American Airlines - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling American Airlines Group to buy it.
The correlation of American Airlines is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as American Airlines moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if American Airlines moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for American Airlines can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your American Airlines position

In addition to having American Airlines in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Run Emerging Markets ETFs Thematic Idea Now

Emerging Markets ETFs
Emerging Markets ETFs Theme
ETF themes focus on helping investors to gain exposure to a broad range of assets, diversify, and lower overall costs. The Emerging Markets ETFs theme has 21 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Emerging Markets ETFs Theme or any other thematic opportunities.
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When determining whether American Airlines is a strong investment it is important to analyze American Airlines' competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact American Airlines' future performance. For an informed investment choice regarding American Stock, refer to the following important reports:
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Note that the American Airlines information on this page should be used as a complementary analysis to other American Airlines' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the FinTech Suite module to use AI to screen and filter profitable investment opportunities.

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When running American Airlines' price analysis, check to measure American Airlines' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy American Airlines is operating at the current time. Most of American Airlines' value examination focuses on studying past and present price action to predict the probability of American Airlines' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move American Airlines' price. Additionally, you may evaluate how the addition of American Airlines to your portfolios can decrease your overall portfolio volatility.
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To fully project American Airlines' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of American Airlines at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include American Airlines' income statement, its balance sheet, and the statement of cash flows.
Potential American Airlines investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although American Airlines investors may work on each financial statement separately, they are all related. The changes in American Airlines's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on American Airlines's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.