AALCAUTIOUS

AAL Quick Ratio Analysis

0.33x

Higher than 18% of Industrials sector peers

Updated 3033h ago·SEC filings & market data

Key Takeaway

American Airlines' quick ratio of 0.33x means the company has only $0.33 in highly liquid assets (cash, marketable securities, receivables) for every $1 of current liabilities due within a year.

Sector Performance

18th percentile

AAL

0.33x

Sector Median

0.61x

Sector Avg

2.02x

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Deep Analysis

American Airlines' quick ratio of 0.33x means the company has only $0.33 in highly liquid assets (cash, marketable securities, receivables) for every $1 of current liabilities due within a year.

This is well below the Industrials sector median of 0.64x, placing AAL in the 12th percentile among its peers. The metric has been perfectly stable over the past eight quarters, with year-over-year and quarter-over-quarter changes both at +0.0%. A quick ratio this low suggests AAL has very thin short-term liquidity coverage, and the flat trend indicates no improvement or deterioration is underway. For an investor, the combination of a persistently low level and no upward movement heightens the risk of financial strain if cash flows weaken. This directly supports the overall CAUTIOUS verdict, as the metric points to elevated liquidity risk relative to industry norms.

Frequently Asked Questions

What does the Quick Ratio tell investors about AAL?

A strict liquidity test. Values below 1.0 suggest a company may struggle to cover short-term obligations without selling inventory.

How is the Quick Ratio calculated?

Quick Ratio is calculated as: (Cash + Receivables) / Current Liabilities.

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

AAL's Quick Ratio of 0.33x compares to a Industrials sector median of 0.61x, placing it in the 18th percentile.

Who are AAL's closest peers by Quick Ratio?

The closest Industrials peers by Quick Ratio include: PLUG (0.61x), MMM (0.60x), AME (0.59x), AVY (0.67x), RSG (0.54x).

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Learn More About Quick Ratio

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Working capital is more than current assets minus liabilities. Learn why working capital matters for liquidity, efficiency, and competitive advantage, with real data from AMZN, COST, HD, and XOM.

The Formula

(Cash + Receivables) / Current Liabilities

Why It Matters

A strict liquidity test. Values below 1.0 suggest a company may struggle to cover short-term obligations without selling inventory.