American Airlines Financials

AAL Stock  USD 14.11  0.15  1.07%   
Based on the key indicators related to American Airlines' liquidity, profitability, solvency, and operating efficiency, American Airlines Group is performing exceptionally good at this time. It has a great probability to report excellent financial results in April. At this time, American Airlines' Cash And Short Term Investments are quite stable compared to the past year. Common Stock Shares Outstanding is expected to rise to about 755.7 M this year, although the value of Other Current Liabilities will most likely fall to about 3.5 B. Key indicators impacting American Airlines' financial strength include:
Current ValueLast YearChange From Last Year 10 Year Trend
Current Ratio0.840.6152
Significantly Up
Slightly volatile
The financial analysis of American Airlines is a critical element in measuring its lifeblood. The essential information of the day-to-day investment outlook for American Airlines includes many different criteria found on its balance sheet. For example, investors should never minimize American Airlines' ability to pay suppliers or employees on time, making sure interest payments are not accumulating or correctly timing where and how to re-invest extra cash. Any individual investor needs to monitor American Airlines' cash flow, debt, and profitability to effectively and accurately make more informed decisions on whether to invest in American Airlines.

Net Income

863.1 Million

With this module, you can analyze American financials for your investing period. You should be able to track the changes in American Airlines individual financial statements over time to develop the understanding of its risk, liquidity, profitability, or other critical and vital indicators.
  
Understanding current and past American Airlines Financials, including the trends in assets, liabilities, equity and income are directly related to making proper and timely investing decisions. All of American Airlines' financial statements are interrelated, with each one affecting the others. For example, an increase in American Airlines' assets may result in an increase in income on the income statement.
Evaluating American Airlines' financials involves analyzing a range of financial metrics and ratios to gain insights into the company's financial health and performance. However, considering all of American Airlines' profitability, liquidity ratios, and efficiency indicators at the same time could be an enormous task, and our Financial Distress score can provide you with a snapshot of the American Airlines' relative financial performance

Chance Of Distress

Less than 39

 
100  
 
Zero
Below Average
American Airlines Group has less than 39 (%) percent chance of experiencing financial distress in the next two years of operations. The calculation of odds of distress for American Airlines stock is tightly coupled with the Probability of Bankruptcy. It complements the equity performance score by supplying investors with insight into company financials without requiring them to know too much about all of the complex accounting and financial indicators surrounding the entity.
Please note, American Airlines' odds of distress score SHOULD NOT be confused with the real chance of American Airlines Group filing for bankruptcy protection for chapters 7, 11, 12, or 13. We define Financial Distress as an operational condition where an entity such as American is having difficulty meeting its current financial obligations towards its creditors or delivering on the expectations of its investors. Macroaxis derives these conditions daily from public financial statements and analysis of stock prices reacting to market conditions or economic downturns, including short-term and long-term historical volatility. Other factors considered include American Airlines' liquidity analysis, revenue patterns, R&D expenses, and commitments, as well as public headlines and social sentiment.
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The data published in American Airlines' official financial statements usually reflect American Airlines' business processes, product offerings, services, and other fundamental events. But there are other numbers, ratios, or fundamental indicators derived from these statements that are easier to understand and visualize within the underlying realities that drive quantitative information of American Airlines. For example, before you start analyzing numbers published by American accountants, it's critical to develop an understanding of what American Airlines' liquidity, profitability, and earnings quality are in the context of the Passenger Airlines space in which it operates.
Please note, the presentation of American Airlines' financial position, as portrayed in its financial statements, is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, American Airlines' management is honest, while the outside auditors are strict and uncompromising. Whatever the case, the imprecision that can be found in American Airlines' accounting process means that the reasonable investor should take a skeptical approach toward the financial statement analysis of American Airlines Group. Please utilize our Beneish M Score to check the likelihood of American Airlines' management manipulating its earnings.

American Airlines Company Summary

American Airlines competes with Daseke, Canadian National, Werner Enterprises, Canadian Pacific, and CSX. American Airlines Group Inc., through its subsidiaries, operates as a network air carrier. American Airlines Group Inc. was founded in 1930 and is headquartered in Fort Worth, Texas. American Airlines operates under Airlines classification in the United States and is traded on NASDAQ Exchange. It employs 129700 people.
Specialization
Industrials, Transportation
InstrumentUSA Stock View All
ExchangeNASDAQ Exchange
CIK Number0000006201
ISINUS02376R1023
CUSIP02376R102
RegionNorth America
LocationTexas; U.S.A
Business Address1 Skyview Drive,
SectorPassenger Airlines
IndustryIndustrials
BenchmarkNYSE Composite
Websitewww.americanairlines.in/intl/in/index.jsp
Phone682 278 9000
CurrencyUSD - US Dollar
You should never invest in American Airlines without having analyzed its financial statements. Do not rely on someone else's analysis or guesses about the future performance of American Stock, because this is throwing your money away. Analyzing the key information contained in American Airlines' financial statements can give you an edge over other investors and help to ensure that your investments perform well for you.

American Airlines Key Financial Ratios

Generally speaking, American Airlines' financial ratios allow both analysts and investors to convert raw data from American Airlines' financial statements into concise, actionable information that can be used to evaluate the performance of American Airlines over time and compare it to other companies across industries. There are many critical financial ratios that investors are exposed to on a daily basis, but they are usually grouped into few meaningful categories from each financial statement that American Airlines reports annually and quarterly.

American Airlines Key Balance Sheet Accounts

201920202021202220232024 (projected)
Total Assets60.0B62.0B66.4B64.7B63.1B34.1B
Other Current Liab3.7B4.1B4.3B4.7B5.1B3.5B
Net Debt33.2B40.8B45.9B43.2B39.2B41.1B
Retained Earnings2.3B(6.7B)(8.6B)(8.5B)(7.7B)(7.3B)
Cash280M245M273M440M1.5B1.6B
Net Receivables1.8B1.3B1.5B2.1B2.0B1.3B
Inventory1.9B1.6B1.8B2.3B2.4B2.5B
Other Current Assets779M1.3B1.6B892M658M782.8M
Total Liab60.1B68.9B73.8B70.5B68.3B71.7B
Total Current Assets8.2B11.1B17.3B15.3B13.6B7.3B
Short Term Debt4.6B4.4B4.0B4.7B4.9B5.2B
Accounts Payable2.1B1.2B1.8B2.1B2.4B1.4B
Intangible Assets2.1B2.0B2.0B2.1B2.1B1.7B
Long Term Debt21.5B29.8B35.6B32.4B29.3B18.7B
Long Term Debt Total21.5B29.8B35.6B32.4B37.2B39.1B
Other Liab12.9B15.7B12.6B10.1B9.1B10.4B
Net Tangible Assets(6.3B)(13.0B)(13.4B)(5.8B)(5.2B)(5.5B)
Other Assets3.4B6.3B6.2B5.4B6.2B5.5B
Net Invested Capital24.2B25.7B30.7B29.9B27.7B29.8B
Short Long Term Debt2.9B2.8B2.5B3.3B3.6B3.4B
Net Working Capital(10.1B)(5.5B)(1.7B)(6.2B)(8.5B)(8.9B)

American Airlines Key Income Statement Accounts

An income statement is very similar to a cash flow statement, but instead of showing net revenue minus expenses, it only includes earnings before interest and taxes (EBIT). This number does not have all of the same line items that are on a cash flow statement, but it leaves out non-cash expenses like depreciation and amortization. For example, if you bought $100 worth of goods from Walmart (WMT) using your debit card that has an interest rate of 20%, then paid off the balance at the end of the month with a credit card that charges 30% interest, you would have an income statement showing EBIT of $80 because your expenses are lower than the amount that went into your pocket. The other reason investors look at the income statement is to determine what American Airlines' earnings per share (EPS) will be in order to see if they want to buy more shares or not. For example, if a company earned $20 million in the last quarter and has 100,000 shares outstanding, its EPS is 20 cents. If you find that this number beats analysts' forecasts or is higher than it was from the same period last year, then you might want to buy more of this stock even though its price per share may not have changed.
201920202021202220232024 (projected)
Interest Expense1.1B1.2B1.8B2.0B2.1B2.3B
Total Revenue45.8B17.3B29.9B49.0B52.8B55.4B
Gross Profit10.4B(7.6B)27M9.0B11.8B8.5B
Operating Income1.0B(10.4B)(5.1B)(150M)4.0B4.2B
Ebit1.0B(10.4B)(5.1B)(150M)4.0B4.2B
Ebitda3.4B(10.2B)(748M)2.1B6.3B6.6B
Cost Of Revenue35.4B24.9B29.9B39.9B41.0B43.0B
Income Before Tax2.3B(11.5B)(2.5B)186M1.1B1.2B
Net Income1.7B(8.9B)(2.0B)127M822M863.1M
Income Tax Expense570M(2.6B)(555M)59M299M314.0M
Tax Provision570M(2.6B)(555M)59M299M314.0M
Net Interest Income(968M)(1.2B)(1.8B)(1.7B)(1.6B)(1.6B)
Interest Income127M41M18M216M591M620.6M

American Airlines Key Cash Accounts

Cash flow analysis captures how much money flows into and out of American Airlines. It measures of how well American is doing because it can show the actual money that comes into and out of the Company from sales instead of measuring expenses against revenue to determine earnings. You have to read the cash flow statement in three sections. The first section shows how much money American Airlines brought in, usually known as net revenue or sales. This is different from earnings because it does not include expenses when determining net revenue for use on this part of the cash flow statement. Next, are operating activities, which show how much money American had leftover after paying for its expenses. This number can be calculated in two ways: by subtracting the total of all operating expenses from net revenue or by adding up changes to cash and other assets or liabilities on this part of the statement. The third section is about investing activities, which shows what American Airlines has done with the money that it received from the sale of assets or what it spent to acquire new ones. This section can be broken down into two parts: investing in existing businesses (in other words, buying more stock) and investing in non-business activities like paying off debt or making acquisitions.
201920202021202220232024 (projected)
Change To Inventory(400M)88M(45M)(1.8B)(520M)(494M)
Change In Cash4M109M9M178M(679M)(645.1M)
Free Cash Flow(453M)(8.5B)496M(733M)1.2B1.3B
Depreciation2.3B2.4B2.3B2.3B2.3B1.3B
Other Non Cash Items24M1.2B(222M)242M90M85.5M
Dividends Paid178M43M12.2B3.5B4.1B4.3B
Capital Expenditures4.3B2.0B208M2.9B2.6B2.7B
Net Income1.7B(8.9B)(2.0B)127M822M863.1M
End Period Cash Flow290M399M408M586M1.5B1.6B
Investments960M(3.0B)(5.5B)636M(502M)(527.1M)
Net Borrowings(230M)8.2B4.8B(2.7B)(3.1B)(2.9B)
Change To Netincome678M(1.2B)362M65M58.5M71.4M

American Financial Ratios Relationships

Comparative valuation techniques use various fundamental indicators to help in determining American Airlines's current stock value. Our valuation model uses many indicators to compare American Airlines value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across American Airlines competition to find correlations between indicators driving American Airlines's intrinsic value. More Info.
American Airlines Group is rated below average in shares owned by institutions category among related companies. It is rated fourth in operating margin category among related companies . The ratio of Shares Owned By Institutions to Operating Margin for American Airlines Group is about  1,028 . Comparative valuation analysis is a catch-all model that can be used if you cannot value American Airlines by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for American Airlines' Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the American Airlines' earnings, one of the primary drivers of an investment's value.

American Airlines Systematic Risk

American Airlines' systematic risk plays a vital role in portfolio allocation when considering its stock to be added to a well-diversified portfolio. American Airlines volatility which cannot be eliminated through diversification, requires returns over the risk-free rate. Over the long run, a well-diversified portfolio provides returns that match its exposure to systematic risk. In this case, investors face a trade-off between expected returns and systematic risk and, therefore, can only reduce a portfolio's exposure to systematic risk by sacrificing expected returns on the portfolio.
The function did not generate any output. Please change time horizon or modify your input parameters. The output start index for this execution was one with a total number of output elements of sixty. The Beta measures systematic risk based on how returns on American Airlines correlated with the market. If Beta is less than 0 American Airlines generally moves in the opposite direction as compared to the market. If American Airlines Beta is about zero movement of price series is uncorrelated with the movement of the benchmark. if Beta is between zero and one American Airlines is generally moves in the same direction as, but less than the movement of the market. For Beta = 1 movement of American Airlines is generally in the same direction as the market. If Beta > 1 American Airlines moves generally in the same direction as, but more than the movement of the benchmark.

About American Airlines Financials

What exactly are American Airlines Financials? Typically, a company's financial statements are the reports that show the financial position of the company. 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 use financial statements to determine how well the company is positioned to perform in the future. Although American Airlines investors may use 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.

Steps to analyze American Airlines Financials for Investing

There are several different ways that investors can use financial statements to try and predict whether a stock price will go up or down. Unfortunately, there is no surefire formula, but there are some general guidelines you should consider when looking at the numbers. First, realize what kind of company it is so you know if its revenues are more likely to grow or shrink over time. For example, a software company's revenue is expected to increase yearly due to new products and services that its customers will want to buy. At the same time, a car manufacturer might not be able to sell as many cars when the economy slows down, so it would have less net income during those times. Second, pay attention to its debt-to-equity ratio because this number will tell you how much risk it has. If a company such as American Airlines is not taking on any additional risks, its debt-to-equity should be less than one. As a general rule of thumb, if the market value or book value (which can be found in the footnotes) of assets exceeds the company's liabilities, then it is probably in good shape. Finally, use other financial statements to determine if a stock price will go up or down because investors are always looking for growth opportunities when they buy new stocks. For example, if you see that the net revenue of American has grown by more than 25% over the last five years, then there is a good chance that it will continue growing by at least 20% or more each year. On the other hand, if you see that net revenue has only increased by about 15%, which is barely above inflation levels, then chances are it will not grow much faster than this over time, and investors may shy away from buying it.
In summary, you can determine if American Airlines' financials are consistent with your investment objective using the following steps:
  • Review American Airlines' balance sheet accounts, such as liabilities and equity, to understand its overall financial position.
  • Analyze the income statement and examine the company's revenue, expenses, and profits over time to determine its financial performance.
  • Study the cash flow inflows and outflows to understand American Airlines' liquidity and solvency.
  • Look at the growth rates in revenue, earnings, and cash flow over time to determine its potential for future growth.
  • Compare American Airlines' financials to those of its peers to see how it stacks up and identify any potential red flags.
  • Use valuation ratios to evaluate the company's financials using commonly used ratios such as the price-to-earnings (P/E) ratio, price-to-sales (P/S) ratio, and enterprise value-to-earnings before interest, taxes, depreciation, and amortization (EV/EBITDA) ratio to determine if American Airlines' stock is overvalued or undervalued.
Remember, these are just guidelines and should not be the only basis for investment decisions. It is always important to analyze the leading stock market indicators., conduct additional research and seek professional advice if needed.

American Airlines Thematic Clasifications

American Airlines Group is part of several thematic ideas from Airlines to Transportation. If you are a theme-oriented, socially responsible, and at the same time, a result-driven investor, you can align your investing habits with your values without jeopardizing your expectations about returns. You can easily create an optimal portfolio of stocks, ETFs, funds, or cryptocurrencies based on a specific theme of your liking. Get More Thematic Ideas
Today, most investors in American Airlines Stock are looking for potential investment opportunities by analyzing not only static indicators but also various American Airlines' growth ratios. Consistent increases or decreases in fundamental ratios usually indicate a possible pattern that can be successfully translated into profits. However, when comparing two companies, knowing each company's growth growth rates may not be enough to decide which company is a better investment. That's why investors frequently use static breakdown of American Airlines growth as a starting point in their analysis.

Price Earnings To Growth Ratio

0.0238

At this time, American Airlines' Price Earnings To Growth Ratio is quite stable compared to the past year.

American Airlines March 19, 2024 Opportunity Range

Along with financial statement analysis, the daily predictive indicators of American Airlines help investors to analyze its daily demand and supply, volume, patterns, and price swings to determine the real value of American Airlines Group. We use our internally-developed statistical techniques to arrive at the intrinsic value of American Airlines Group based on widely used predictive technical indicators. In general, we focus on analyzing American Stock price patterns and their correlations with different microeconomic environment and drivers. We also apply predictive analytics to build American Airlines's daily price indicators and compare them against related drivers.
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:
Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in American Airlines Group. Also, note that the market value of any Company could be tightly coupled with the direction of predictive economic indicators such as signals in nation.
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.

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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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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.