American Operating Income vs Income Tax Expense Analysis

AAL Stock  USD 15.35  0.05  0.33%   
American Airlines financial indicator trend analysis is way more than just evaluating American Airlines prevailing accounting drivers to predict future trends. We encourage investors to analyze account correlations over time for multiple indicators to determine whether American Airlines is a good investment. Please check the relationship between American Airlines Operating Income and its Income Tax Expense accounts. Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in American Airlines Group. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in nation.

Operating Income vs Income Tax Expense

Operating Income vs Income Tax Expense Correlation Analysis

The overlapping area represents the amount of trend that can be explained by analyzing historical patterns of American Airlines Operating Income account and Income Tax Expense. At this time, the significance of the direction appears to have weak relationship.
The correlation between American Airlines' Operating Income and Income Tax Expense is 0.37. Overlapping area represents the amount of variation of Operating Income that can explain the historical movement of Income Tax Expense in the same time period over historical financial statements of American Airlines Group, assuming nothing else is changed. The correlation between historical values of American Airlines' Operating Income and Income Tax Expense is a relative statistical measure of the degree to which these accounts tend to move together. The correlation coefficient measures the extent to which Operating Income of American Airlines Group are associated (or correlated) with its Income Tax Expense. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when Income Tax Expense has no effect on the direction of Operating Income i.e., American Airlines' Operating Income and Income Tax Expense go up and down completely randomly.

Correlation Coefficient

0.37
Relationship DirectionPositive 
Relationship StrengthVery Weak

Operating Income

Operating Income is the amount of profit realized from American Airlines operations after accounting for operating expenses such as cost of goods sold (COGS), wages and depreciation. Operating income takes the gross income and subtracts other operating expenses and then removes depreciation. Operating Income of American Airlines Group is typically a synonym for earnings before interest and taxes (EBIT) and is also commonly referred to as operating profit or recurring profit. Earnings before interest and taxes (EBIT), representing the amount of profit a company generates from its operations.

Income Tax Expense

Most indicators from American Airlines' fundamental ratios are interrelated and interconnected. However, analyzing fundamental ratios indicators one by one will only give a small insight into American Airlines current financial condition. On the other hand, looking into the entire matrix of fundamental ratios indicators, and analyzing their relationships over time can provide a more complete picture of the company financial strength now and in the future. Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in American Airlines Group. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in nation.
Tax Provision is expected to rise to about 313.9 M this year, although the value of Selling General Administrative will most likely fall to about 1.7 B.
 2021 2022 2023 2024 (projected)
Total Operating Expenses5.1B7.2B7.8B8.5B
Cost Of Revenue29.9B39.9B41.0B43.0B

American Airlines fundamental ratios Correlations

0.830.30.79-0.060.960.840.02-0.390.990.240.580.830.660.950.690.360.310.850.750.740.790.70.69-0.620.64
0.830.060.93-0.310.811.0-0.12-0.080.820.310.680.640.740.830.930.120.130.970.60.930.690.920.62-0.60.53
0.30.060.220.040.140.06-0.4-0.020.220.230.450.370.250.260.070.650.530.190.550.00.12-0.030.48-0.150.51
0.790.930.22-0.270.770.93-0.190.030.780.350.690.760.770.750.960.20.190.960.610.910.760.930.57-0.550.72
-0.06-0.310.04-0.27-0.01-0.310.75-0.030.0-0.31-0.360.080.14-0.33-0.330.140.34-0.37-0.27-0.35-0.02-0.39-0.31-0.44-0.28
0.960.810.140.77-0.010.830.21-0.440.990.140.370.780.610.90.70.140.160.820.550.80.780.720.48-0.580.58
0.841.00.060.93-0.310.83-0.11-0.120.830.310.670.640.730.840.920.130.130.970.610.930.690.920.62-0.590.54
0.02-0.12-0.4-0.190.750.21-0.11-0.30.15-0.4-0.59-0.04-0.01-0.17-0.16-0.37-0.17-0.23-0.5-0.060.09-0.12-0.5-0.27-0.34
-0.39-0.08-0.020.03-0.03-0.44-0.12-0.3-0.42-0.10.13-0.10.04-0.430.15-0.020.02-0.13-0.13-0.06-0.06-0.02-0.15-0.16-0.24
0.990.820.220.780.00.990.830.15-0.420.180.460.80.650.920.690.250.250.830.630.770.780.70.57-0.620.61
0.240.310.230.35-0.310.140.31-0.4-0.10.180.370.420.250.280.360.060.150.320.430.250.320.370.38-0.020.22
0.580.680.450.69-0.360.370.67-0.590.130.460.370.510.590.620.610.620.370.730.880.450.410.590.93-0.450.54
0.830.640.370.760.080.780.64-0.04-0.10.80.420.510.660.710.670.370.40.690.70.590.880.640.55-0.590.65
0.660.740.250.770.140.610.73-0.010.040.650.250.590.660.530.710.250.670.710.50.640.590.650.49-0.630.53
0.950.830.260.75-0.330.90.84-0.17-0.430.920.280.620.710.530.670.310.190.860.780.740.690.710.74-0.440.64
0.690.930.070.96-0.330.70.92-0.160.150.690.360.610.670.710.670.020.050.920.50.930.750.960.46-0.530.55
0.360.120.650.20.140.140.13-0.37-0.020.250.060.620.370.250.310.020.550.240.68-0.10.03-0.070.66-0.440.37
0.310.130.530.190.340.160.13-0.170.020.250.150.370.40.670.190.050.550.160.43-0.010.12-0.060.39-0.370.29
0.850.970.190.96-0.370.820.97-0.23-0.130.830.320.730.690.710.860.920.240.160.670.920.680.910.66-0.520.71
0.750.60.550.61-0.270.550.61-0.5-0.130.630.430.880.70.50.780.50.680.430.670.380.560.490.97-0.440.58
0.740.930.00.91-0.350.80.93-0.06-0.060.770.250.450.590.640.740.93-0.1-0.010.920.380.690.910.36-0.450.54
0.790.690.120.76-0.020.780.690.09-0.060.780.320.410.880.590.690.750.030.120.680.560.690.760.44-0.490.52
0.70.92-0.030.93-0.390.720.92-0.12-0.020.70.370.590.640.650.710.96-0.07-0.060.910.490.910.760.48-0.390.58
0.690.620.480.57-0.310.480.62-0.5-0.150.570.380.930.550.490.740.460.660.390.660.970.360.440.48-0.410.51
-0.62-0.6-0.15-0.55-0.44-0.58-0.59-0.27-0.16-0.62-0.02-0.45-0.59-0.63-0.44-0.53-0.44-0.37-0.52-0.44-0.45-0.49-0.39-0.41-0.08
0.640.530.510.72-0.280.580.54-0.34-0.240.610.220.540.650.530.640.550.370.290.710.580.540.520.580.51-0.08
Click cells to compare fundamentals

American Airlines Account Relationship Matchups

American Airlines fundamental ratios Accounts

201920202021202220232024 (projected)
Total Assets60.0B62.0B66.4B64.7B63.1B34.1B
Short Long Term Debt Total33.4B41.0B46.2B43.7B40.7B42.7B
Other Current Liab3.7B4.1B4.3B4.7B5.1B3.5B
Total Current Liabilities18.3B16.6B19.0B21.5B22.1B23.2B
Total Stockholder Equity(118M)(6.9B)(7.3B)(5.8B)(5.2B)(4.9B)
Property Plant And Equipment Net43.7B39.7B37.4B38.3B38.7B21.3B
Net Debt33.2B40.8B45.9B43.2B39.2B41.1B
Retained Earnings2.3B(6.7B)(8.6B)(8.5B)(7.7B)(7.3B)
Cash280M245M273M440M1.5B1.6B
Non Current Assets Total51.8B50.9B49.1B49.4B49.5B26.9B
Non Currrent Assets Other1.0B1.7B1.9B9.0B1.6B2.6B
Cash And Short Term Investments3.8B6.9B12.4B9.0B8.5B8.9B
Net Receivables1.8B1.3B1.5B2.1B2.0B1.3B
Common Stock Shares Outstanding444.3M483.9M644.0M655.1M719.7M755.7M
Liabilities And Stockholders Equity60.0B62.0B66.4B64.7B63.1B34.1B
Non Current Liabilities Total41.8B52.3B54.8B49.0B46.2B23.1B
Inventory1.9B1.6B1.8B2.3B2.4B2.5B
Other Current Assets779M1.3B1.6B892M658M782.8M
Other Stockholder Equity3.9B6.9B7.2B7.3B7.4B5.5B
Total Liab60.1B68.9B73.8B70.5B68.3B71.7B
Total Current Assets8.2B11.1B17.3B15.3B13.6B7.3B
Accumulated Other Comprehensive Income(6.3B)(7.1B)(5.9B)(4.6B)(4.9B)(5.1B)
Short Term Debt4.6B4.4B4.0B4.7B4.9B5.2B
Accounts Payable2.1B1.2B1.8B2.1B2.4B1.4B
Current Deferred Revenue8.0B6.8B9.0B9.9B9.7B10.1B
Short Term Investments3.5B6.6B12.2B8.5B7B4.6B
Intangible Assets2.1B2.0B2.0B2.1B2.1B1.7B
Long Term Debt21.5B29.8B35.6B32.4B29.3B18.7B
Long Term Debt Total21.5B29.8B35.6B32.4B37.2B39.1B
Other Liab12.9B15.7B12.6B10.1B9.1B10.4B
Net Tangible Assets(6.3B)(13.0B)(13.4B)(5.8B)(5.2B)(5.5B)
Other Assets3.4B6.3B6.2B5.4B6.2B5.5B
Capital Lease Obligations9.1B8.4B8.1B8.0B7.8B6.8B
Net Invested Capital24.2B25.7B30.7B29.9B27.7B29.8B
Short Long Term Debt2.9B2.8B2.5B3.3B3.6B3.4B
Non Current Liabilities Other1.5B1.5B1.3B1.3B1.6B1.6B
Net Working Capital(10.1B)(5.5B)(1.7B)(6.2B)(8.5B)(8.9B)

Pair Trading with American Airlines

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if American Airlines position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in American Airlines will appreciate offsetting losses from the drop in the long position's value.

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The ability to find closely correlated positions to American Airlines could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace American Airlines when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back American Airlines - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling American Airlines Group to buy it.
The correlation of American Airlines is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as American Airlines moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if American Airlines moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for American Airlines can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching
When determining whether American Airlines is a strong investment it is important to analyze American Airlines' competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact American Airlines' future performance. For an informed investment choice regarding American Stock, refer to the following important reports:
Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in American Airlines Group. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in nation.
Note that the American Airlines information on this page should be used as a complementary analysis to other American Airlines' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.

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Is American Airlines' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of American Airlines. If investors know American will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about American Airlines listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.97)
Earnings Share
1.21
Revenue Per Share
80.764
Quarterly Revenue Growth
(0.01)
Return On Assets
0.0396
The market value of American Airlines is measured differently than its book value, which is the value of American that is recorded on the company's balance sheet. Investors also form their own opinion of American Airlines' value that differs from its market value or its book value, called intrinsic value, which is American Airlines' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because American Airlines' market value can be influenced by many factors that don't directly affect American Airlines' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between American Airlines' value and its price as these two are different measures arrived at by different means. Investors typically determine if American Airlines is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, American Airlines' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.