American Airlines Group Inc., FCFF calculation

US$ in millions

12 months ended:	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income (loss)	822)	127)	(1,993)	(8,885)	1,686)
Net noncash charges	2,745)	2,228)	1,656)	1,125)	2,996)
Changes in operating assets and liabilities	236)	(182)	1,041)	1,217)	(867)
Net cash provided by (used in) operating activities	3,803)	2,173)	704)	(6,543)	3,815)
Interest paid, net, net of tax¹	1,599)	1,265)	1,277)	732)	830)
Capital expenditures, net of aircraft purchase deposit returns	(2,596)	(2,546)	(208)	(1,958)	(4,268)
Property and equipment acquired through finance leases	(317)	(46)	(180)	(11)	(20)
Free cash flow to the firm (FCFF)	2,489)	846)	1,593)	(7,780)	357)

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).

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Item	Description	The company
FCFF	Free cash flow to the firm is the cash flow available to the American Airlines Group Inc. suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made.	American Airlines Group Inc. FCFF decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.

American Airlines Group Inc., interest paid, net of tax calculation

US$ in millions

12 months ended:	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Effective Income Tax Rate (EITR)
EITR¹	26.67%	31.72%	21.78%	22.42%	25.27%
Interest Paid, Net of Tax
Interest paid, net, before tax	2,180)	1,852)	1,632)	944)	1,111)
Less: Interest paid, net, tax²	581)	587)	355)	212)	281)
Interest paid, net, net of tax	1,599)	1,265)	1,277)	732)	830)

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).

¹ See details »

² 2023 Calculation
Interest paid, net, tax = Interest paid, net × EITR
= 2,180 × 26.67% = 581

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American Airlines Group Inc., current EV/FCFF calculation, comparison to benchmarks

Selected Financial Data (US$ in millions)
Enterprise value (EV)	34,098)
Free cash flow to the firm (FCFF)	2,489)
Valuation Ratio
EV/FCFF	13.70
Benchmarks
EV/FCFF, Competitors¹
FedEx Corp.	21.37
Uber Technologies Inc.	35.62
Union Pacific Corp.	29.32
United Parcel Service Inc.	21.40
EV/FCFF, Sector
Transportation	27.35
EV/FCFF, Industry
Industrials	26.27

Based on: 10-K (reporting date: 2023-12-31).

¹ Click competitor name to see calculations.

If the company EV/FCFF is lower then the EV/FCFF of benchmark then company is relatively undervalued.
Otherwise, if the company EV/FCFF is higher then the EV/FCFF of benchmark then company is relatively overvalued.

American Airlines Group Inc., historical EV/FCFF calculation, comparison to benchmarks

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Selected Financial Data (US$ in millions)
Enterprise value (EV)¹	34,098)	35,839)	35,954)	36,628)	32,401)
Free cash flow to the firm (FCFF)²	2,489)	846)	1,593)	(7,780)	357)
Valuation Ratio
EV/FCFF³	13.70	42.39	22.58	—	90.70
Benchmarks
EV/FCFF, Competitors⁴
FedEx Corp.	23.94	19.13	18.72	—	87.04
Uber Technologies Inc.	46.69	136.28	—	—	—
Union Pacific Corp.	31.90	23.83	26.42	25.20	25.44
United Parcel Service Inc.	24.78	16.63	16.95	28.23	39.28
EV/FCFF, Sector
Transportation	31.32	22.96	23.87	65.92	104.98
EV/FCFF, Industry
Industrials	25.67	24.88	28.41	72.49	31.28

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).

¹ See details »

² See details »

³ 2023 Calculation
EV/FCFF = EV ÷ FCFF
= 34,098 ÷ 2,489 = 13.70

⁴ Click competitor name to see calculations.

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Valuation ratio	Description	The company
EV/FCFF	Enterprise value to free cash flow to the firm is whole company valuation indicator.	American Airlines Group Inc. EV/FCFF ratio increased from 2021 to 2022 but then decreased significantly from 2022 to 2023.

American Airlines Group Inc. (NASDAQ:AAL)

Enterprise Value to FCFF (EV/FCFF)

Free Cash Flow to The Firm (FCFF)

Interest Paid, Net of Tax

Enterprise Value to FCFF Ratio, Current

Enterprise Value to FCFF Ratio, Historical