Return on Assets (ROA)
since 2013
Calculation
American Airlines Group Inc., ROA, long-term trends, calculation
| ROA | = | 100 | × | Net income (loss)1 | ÷ | Total assets1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2023 | 1.30% | = | 100 | × | 822) | ÷ | 63,058) |
| Dec 31, 2022 | 0.20% | = | 100 | × | 127) | ÷ | 64,716) |
| Dec 31, 2021 | -3.00% | = | 100 | × | (1,993) | ÷ | 66,467) |
| Dec 31, 2020 | -14.33% | = | 100 | × | (8,885) | ÷ | 62,008) |
| Dec 31, 2019 | 2.81% | = | 100 | × | 1,686) | ÷ | 59,995) |
| Dec 31, 2018 | 2.33% | = | 100 | × | 1,412) | ÷ | 60,580) |
| Dec 31, 2017 | 3.73% | = | 100 | × | 1,919) | ÷ | 51,396) |
| Dec 31, 2016 | 5.22% | = | 100 | × | 2,676) | ÷ | 51,274) |
| Dec 31, 2015 | 15.72% | = | 100 | × | 7,610) | ÷ | 48,415) |
| Dec 31, 2014 | 6.58% | = | 100 | × | 2,882) | ÷ | 43,771) |
| Dec 31, 2013 | -4.34% | = | 100 | × | (1,834) | ÷ | 42,278) |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31).
1 US$ in millions
The return on assets (ROA) for American Airlines Group Inc. has exhibited significant volatility over the eleven-year period ending December 31, 2023. The trajectory is characterized by an initial phase of rapid growth, a period of steady decline, a severe contraction, and a subsequent gradual recovery.
- Peak Operational Efficiency
- Between 2013 and 2015, ROA shifted from a negative 4.34% to a peak of 15.72%. This surge was driven by a substantial increase in net income, which moved from a loss of US$ 1,834 million in 2013 to a profit of US$ 7,610 million in 2015, while total assets increased moderately from US$ 42,278 million to US$ 48,415 million.
- Gradual Performance Erosion
- From 2016 to 2019, a consistent downward trend in ROA was observed, falling from 5.22% to 2.81%. This decline occurred despite a general expansion of the asset base, which grew to US$ 59,995 million by 2019, suggesting that net income growth did not keep pace with the increase in total assets.
- Acute Financial Contraction
- The period between 2020 and 2021 represents the most severe downturn in the observed timeframe. ROA plummeted to -14.33% in 2020, corresponding with a net loss of US$ 8,885 million. Although net losses narrowed to US$ 1,993 million in 2021, the ROA remained negative at -3.00% as total assets peaked at US$ 66,467 million.
- Recent Recovery and Stabilization
- Starting in 2022, a recovery trend emerged. ROA returned to positive territory at 0.20% in 2022 and further improved to 1.30% by the end of 2023. This improvement is linked to a return to net profitability, reaching US$ 822 million in 2023, combined with a slight contraction of the asset base to US$ 63,058 million.
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Comparison to Competitors
American Airlines Group Inc., ROA, long-term trends, comparison to competitors
| American Airlines Group Inc. | FedEx Corp. | Uber Technologies Inc. | Union Pacific Corp. | United Airlines Holdings Inc. | United Parcel Service Inc. | |
|---|---|---|---|---|---|---|
| Dec 31, 2023 | 1.30% | 4.56% | 4.88% | 9.50% | 3.68% | 9.47% |
| Dec 31, 2022 | 0.20% | 4.45% | -28.47% | 10.69% | 1.09% | 16.24% |
| Dec 31, 2021 | -3.00% | 6.32% | -1.28% | 10.27% | -2.88% | 18.57% |
| Dec 31, 2020 | -14.33% | 1.75% | -20.35% | 8.57% | -11.87% | 2.15% |
| Dec 31, 2019 | 2.81% | 0.99% | -26.78% | 9.60% | 5.72% | 7.67% |
| Dec 31, 2018 | 2.33% | 8.74% | — | 10.09% | 4.75% | 9.58% |
| Dec 31, 2017 | 3.73% | 6.17% | — | 18.53% | 5.03% | 10.81% |
| Dec 31, 2016 | 5.22% | 3.95% | — | 7.60% | 5.64% | 8.50% |
| Dec 31, 2015 | 15.72% | 2.83% | — | 8.74% | 17.96% | 12.64% |
| Dec 31, 2014 | 6.58% | 6.34% | — | 9.83% | 3.03% | 8.55% |
| Dec 31, 2013 | -4.34% | 4.65% | — | 8.82% | 1.55% | 12.07% |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31).
Comparison to Sector (Transportation)
American Airlines Group Inc., ROA, long-term trends, comparison to sector (transportation)
| American Airlines Group Inc. | Transportation | |
|---|---|---|
| Dec 31, 2023 | 1.30% | 6.44% |
| Dec 31, 2022 | 0.20% | 4.34% |
| Dec 31, 2021 | -3.00% | 6.88% |
| Dec 31, 2020 | -14.33% | -2.01% |
| Dec 31, 2019 | 2.81% | 2.09% |
| Dec 31, 2018 | 2.33% | 8.46% |
| Dec 31, 2017 | 3.73% | 10.69% |
| Dec 31, 2016 | 5.22% | 6.44% |
| Dec 31, 2015 | 15.72% | 10.54% |
| Dec 31, 2014 | 6.58% | 7.21% |
| Dec 31, 2013 | -4.34% | 6.97% |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31).
Comparison to Industry (Industrials)
American Airlines Group Inc., ROA, long-term trends, comparison to industry (industrials)
| American Airlines Group Inc. | Industrials | |
|---|---|---|
| Dec 31, 2023 | 1.30% | 5.61% |
| Dec 31, 2022 | 0.20% | 3.31% |
| Dec 31, 2021 | -3.00% | 3.40% |
| Dec 31, 2020 | -14.33% | 0.04% |
| Dec 31, 2019 | 2.81% | 2.56% |
| Dec 31, 2018 | 2.33% | 3.16% |
| Dec 31, 2017 | 3.73% | 3.59% |
| Dec 31, 2016 | 5.22% | 4.55% |
| Dec 31, 2015 | 15.72% | 3.52% |
| Dec 31, 2014 | 6.58% | 4.31% |
| Dec 31, 2013 | -4.34% | 3.91% |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31).