Latest Ratios: P/E Ratio 101.2x · EV/EBITDA 13.3x · ROE N/A. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $11.4B | $10.1B | $12.6B | $9.9B | $8.3B | $11.6B | $7.6B | $12.7B | $15.0B | $25.6B | $26.0B |
| Enterprise Value | $45.6B | $44.4B | $49.3B | $50.0B | $51.6B | $57.5B | $48.4B | $45.9B | $48.7B | $50.4B | $50.0B |
| P/E Ratio → | 101.18 | 90.18 | 14.06 | 12.05 | 66.95 | — | — | 7.55 | 10.60 | 13.34 | 9.71 |
| P/S Ratio | 0.21 | 0.19 | 0.23 | 0.19 | 0.17 | 0.39 | 0.44 | 0.28 | 0.34 | 0.60 | 0.65 |
| P/B Ratio | — | — | — | — | — | — | — | — | — | — | 6.86 |
| P/FCF | — | — | 9.67 | 8.19 | — | 23.32 | — | — | — | — | 32.74 |
| P/OCF | 3.66 | 3.27 | 3.16 | 2.60 | 3.83 | 16.43 | — | 3.34 | 4.23 | 5.39 | 3.98 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 0.81 | 0.91 | 0.95 | 1.05 | 1.92 | 2.79 | 1.00 | 1.09 | 1.18 | 1.25 |
| EV / EBITDA | 13.26 | 12.91 | 10.86 | 10.05 | 14.39 | 45.04 | — | 8.53 | 10.12 | 8.06 | 7.26 |
| EV / EBIT | 31.11 | 23.31 | 15.97 | 15.30 | 24.01 | — | — | 13.70 | 16.57 | 11.32 | 9.72 |
| EV / FCF | — | — | 37.93 | 41.40 | — | 115.87 | — | — | — | — | 63.03 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 19.2% | 19.2% | 21.1% | 22.4% | 18.5% | 0.1% | -41.7% | 24.3% | 22.6% | 26.6% | 29.2% |
| Operating Margin | 2.7% | 2.7% | 4.8% | 5.7% | 3.3% | -3.5% | -60.1% | 6.7% | 6.0% | 9.9% | 12.6% |
| Net Profit Margin | 0.2% | 0.2% | 1.6% | 1.6% | 0.3% | -6.7% | -51.2% | 3.7% | 3.2% | 3.0% | 6.4% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | — | — | — | — | — | — | — | — | — | 85.3% | 54.9% |
| ROA | 0.2% | 0.2% | 1.4% | 1.3% | 0.2% | -3.1% | -14.6% | 2.8% | 2.5% | 2.5% | 5.2% |
| ROIC | 3.5% | 3.5% | 5.8% | 6.3% | 3.2% | -2.2% | -23.3% | 6.9% | 6.9% | 12.3% | 14.2% |
| ROCE | 3.9% | 3.9% | 6.7% | 7.2% | 3.5% | -2.3% | -23.9% | 7.3% | 6.6% | 11.3% | 14.0% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | — | — | — | — | — | — | — | — | — | — | 6.43 |
| Debt / EBITDA | 10.45 | 10.45 | 8.27 | 8.18 | 12.19 | 36.19 | — | 6.21 | 7.07 | 4.01 | 3.54 |
| Net Debt / Equity | — | — | — | — | — | — | — | — | — | — | 6.35 |
| Net Debt / EBITDA | 9.96 | 9.96 | 8.09 | 8.07 | 12.07 | 35.97 | — | 6.16 | 7.01 | 3.96 | 3.49 |
| Debt / FCF | — | — | 28.26 | 33.21 | — | 92.55 | — | — | — | — | 30.29 |
| Interest Coverage | 1.11 | 1.11 | 1.60 | 1.52 | 1.09 | -0.42 | -8.33 | 3.06 | 2.78 | 4.22 | 5.19 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 0.50 | 0.50 | 0.54 | 0.62 | 0.71 | 0.91 | 0.67 | 0.45 | 0.48 | 0.60 | 0.74 |
| Quick Ratio | 0.38 | 0.38 | 0.43 | 0.51 | 0.60 | 0.82 | 0.57 | 0.35 | 0.39 | 0.51 | 0.67 |
| Cash Ratio | 0.27 | 0.27 | 0.29 | 0.34 | 0.42 | 0.65 | 0.41 | 0.21 | 0.26 | 0.33 | 0.46 |
| Asset Turnover | — | 0.88 | 0.88 | 0.84 | 0.76 | 0.45 | 0.28 | 0.76 | 0.74 | 0.81 | 0.78 |
| Inventory Turnover | 15.82 | 15.82 | 16.20 | 17.07 | 17.52 | 16.63 | 15.22 | 18.71 | 22.66 | 23.03 | 25.97 |
| Days Sales Outstanding | — | 13.86 | 13.51 | 14.01 | 15.94 | 18.38 | 28.25 | 13.96 | 13.98 | 15.00 | 14.49 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | 0.6% | 1.4% | 1.2% | 0.8% | 0.9% |
| Payout Ratio | — | — | — | — | — | — | — | 10.6% | 13.2% | 15.4% | 8.7% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 1.0% | 1.1% | 7.1% | 8.3% | 1.5% | — | — | 13.2% | 9.4% | 7.5% | 10.3% |
| FCF Yield | — | — | 10.3% | 12.2% | — | 4.3% | — | — | — | — | 3.1% |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.3% | 0.2% | 2.3% | 8.6% | 5.6% | 6.3% | 17.3% |
| Total Shareholder Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.3% | 0.2% | 2.8% | 10.0% | 6.8% | 7.1% | 18.2% |
| Shares Outstanding | — | $662M | $721M | $720M | $655M | $644M | $484M | $444M | $466M | $492M | $556M |
High operating leverage sensitivity
As reported in recent financial statements, American Airlines' net margin has fluctuated between -3.8% and 5.0% over the last ten quarters, underscoring a business model that struggles to maintain consistent profitability due to its high fixed-cost structure and sensitivity to external fuel and labor cost shocks.
The wide variance in gross margins, which peaked at 26.0% in 2026Q1 but dipped to 15.0% in 2025Q1, suggests that the company lacks the pricing power to fully offset inflationary pressures. Investors should monitor whether the recent shift toward direct-to-consumer distribution can structurally improve these margins or if they will remain tethered to the cyclical nature of passenger demand.
Based on the provided quarterly data, AAL's ROIC has struggled to maintain positive territory, frequently hovering near zero or dipping into negative values, which indicates that the company is currently failing to generate returns that exceed its cost of capital in a highly competitive aviation market.
The inability to consistently achieve a positive ROIC suggests that the massive capital investment required to maintain a modern fleet is not being adequately compensated by operational efficiency. This trend warrants further investigation into whether the company's hub-and-spoke model can ever achieve the returns on invested capital seen by more efficient legacy peers.
According to the latest quarterly figures, AAL's cash conversion cycle has remained volatile, ranging from 9 to 16 days, which reflects the inherent difficulty in managing working capital when passenger bookings and loyalty program liabilities are subject to significant seasonal and operational fluctuations throughout the fiscal year.
The asset turnover ratio, consistently near 0.20 to 0.23, highlights the extreme capital intensity of the business, where significant asset deployment is required to generate each dollar of revenue. This low turnover suggests that any improvement in operational efficiency must come from better capacity management rather than asset utilization alone.
As indicated by the reported D/EBITDA ratios, which reached as high as 184.85 in 2025Q1, American Airlines faces a precarious leverage profile that leaves the company highly vulnerable to interest rate volatility and potential refinancing risks during periods of operational underperformance or industry-wide demand downturns.
The interest coverage ratio, which has frequently dipped below 1.0, suggests that the company's ability to service its debt from operating income is tenuous at best. Investors should be cautious, as this level of leverage significantly restricts the company's capacity to invest in fleet modernization or return capital to shareholders.
The P/E ratio is frequently misapplied to American Airlines, as the company's earnings are often distorted by non-recurring items, heavy depreciation, and extreme cyclicality, making it a poor indicator of the underlying cash-generating potential of the airline's core hub-and-spoke network and loyalty program.
Instead of relying on P/E, analysts should focus on EV/EBITDA or free cash flow metrics to better understand the company's ability to cover its substantial debt obligations. The market's focus on earnings multiples often obscures the reality that AAL is a capital-intensive industrial platform rather than a traditional growth-oriented business.
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Quick answers to the most common questions about buying AAL stock.
American Airlines Group Inc.'s current P/E ratio is 101.2x. The historical average is 22.3x. This places it at the 100th percentile of its historical range.
American Airlines Group Inc.'s current EV/EBITDA is 13.3x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 10.6x.
Based on historical data, American Airlines Group Inc. is trading at a P/E of 101.2x. This is at the 100th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
American Airlines Group Inc. has 19.2% gross margin and 2.7% operating margin.
American Airlines Group Inc.'s Debt/EBITDA ratio is 10.5x, indicating high leverage. A ratio above 4x may signal elevated financial risk.