AALCAUTIOUS

Current Ratio

0.49x

Higher than 3% of Industrials sector peers

Updated 1928h ago

Sector Performance

3th percentile

AAL

0.49x

Sector Median

1.18x

Sector Avg

2.81x

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Deep Analysis

The current ratio measures a company's ability to pay short-term debts with its short-term assets; a value of 0.49x means American Airlines has only $0.49 in current assets for every $1 of current liabilities, indicating a very thin liquidity position.

This reading sits far below the Industrials sector median of 1.18x, placing the company at the 3rd percentile among its peers—meaning nearly all sector competitors have a stronger liquidity buffer. Trend data is not available: the year-over-year change, quarter-over-quarter change, and the eight-quarter history are all marked as N/A, so no directional assessment can be made. The combination of an extremely low current ratio with no observed trend suggests a structurally weak liquidity position that exposes the company to heightened short-term funding risk, though the lack of trend prevents judging whether conditions are improving or worsening. This metric directly supports the CAUTIOUS overall verdict, as the liquidity deficit is a material risk factor that warrants careful monitoring.

Frequently Asked Questions

What does the Current Ratio tell investors about AAL?

Measures short-term financial health. A ratio above 1.5 is generally healthy; below 1.0 may indicate liquidity stress.

How is the Current Ratio calculated?

Current Ratio is calculated as: Current Assets / Current Liabilities.

How does AAL's Current Ratio compare to its sector?

AAL's Current Ratio of 0.49x compares to a Industrials sector median of 1.18x, placing it in the 3th percentile.

Who are AAL's closest peers by Current Ratio?

The closest Industrials peers by Current Ratio include: BA (1.18x), AME (1.14x), PWR (1.14x), BLNK (1.23x), ROK (1.09x).

The Formula

Current Assets / Current Liabilities

Why It Matters

Measures short-term financial health. A ratio above 1.5 is generally healthy; below 1.0 may indicate liquidity stress.

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AAL

0.49x

Sector Median

1.18x

Sector Avg

2.81x

How AAL's Current Ratio compares to sector peers.

Not financial advice. Research tool only. Data may be delayed.