LATAM Airlines Group S.A. (LTM) Financials
A multiple compares the market's price with a filed figure; it says what the market pays, not how the business is doing. The market capitalization is the vendor's as of Oct 23, 2026; every other figure is from the SEC filings on this page. Not financial advice.
Newest figures come from the 20-F for FY2025, filed Mar 5, 2026. Each column of the statement tables below links to the filing it was taken from, and every filing is listed on the LTM SEC filings page.
LATAM Airlines Group S.A. (LTM) reported $14.3B in revenue for fiscal year 2025, up 11.2% from the prior fiscal year. This page shows its income statement, balance sheet, cash flow statement, and key financial ratios. View 11 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).
Financial Health Signals
Scored against operating companies for FY2025. Each of the six dimensions is a percentile rank within that peer group, and the overall is the average of the dimensions that can be computed. A high score means strong standing among peers, not absolute cross-industry strength. How this score is calculated →
Health score ≠ stock price. This rates the quality of LATAM Airlines Group S.A.'s business: profitability, growth, balance sheet strength. It doesn't tell you whether the stock is a good buy at today's price. Not financial advice. Use it alongside valuation analysis and your own research.
LATAM Airlines Group S.A. has an operating margin of 16.4%, meaning the company retains $16 of operating profit per $100 of revenue. This results in a moderate score of 52/100, indicating healthy but not exceptional operating efficiency. This is up from 12.0% the prior year.
LATAM Airlines Group S.A.'s revenue grew 11.2% year-over-year to $14.3B, a solid pace of expansion. This earns a growth score of 67/100.
LATAM Airlines Group S.A. has elevated debt relative to equity (D/E of 6.01), meaning the company relies heavily on borrowed funds. This high leverage results in a low score of 9/100, reflecting increased financial risk.
LATAM Airlines Group S.A.'s current ratio of 0.60 is below the typical benchmark, resulting in a score of 6/100. This tight liquidity could limit financial flexibility if cash inflows slow.
LATAM Airlines Group S.A. converts 13.8% of revenue into free cash flow ($2.0B). This strong cash generation earns a score of 75/100.
LATAM Airlines Group S.A.'s ROE of 108.5% shows moderate profitability relative to equity, earning a score of 64/100. This is down from 135.1% the prior year.
LATAM Airlines Group S.A. scores 1.71, below the 1.81 distress threshold. The score is pulled down most by current liabilities exceeding current assets by $2.9B against total assets of $17.6B. This indicates elevated financial distress risk and warrants close attention to liquidity and debt levels.
Distress-screening estimate for non-financial companies. Not computed for banks or insurers, where the Altman model does not apply.
LATAM Airlines Group S.A. passes 7 of 9 financial strength tests. All 4 profitability signals pass (positive income, cash flow, and earnings quality), 2 of 3 leverage/liquidity signals pass, 1 of 2 operating efficiency signals passes.
For every $1 of reported earnings, LATAM Airlines Group S.A. generates $2.56 in operating cash flow ($3.7B OCF vs $1.5B net income). This indicates profits are well-supported by actual cash generation, not accounting adjustments.
LATAM Airlines Group S.A. earns $3.24 in operating income for every $1 of interest expense ($2.3B vs $721.4M). This adequate coverage means the company can meet its interest obligations, but has limited cushion if earnings fall.
Key Financial Metrics
Earnings & Revenue
LATAM Airlines Group S.A. generated $14.3B in revenue in fiscal year 2025. This represents an increase of 11.2% from the prior year.
LATAM Airlines Group S.A. reported $1.5B in net income in fiscal year 2025. This represents an increase of 49.4% from the prior year.
LATAM Airlines Group S.A. earned $0.00 per diluted share (EPS) in fiscal year 2025. This represents an increase of 56.3% from the prior year.
Not reported for fiscal year 2025.
Cash & Balance Sheet
LATAM Airlines Group S.A. generated $2.0B in free cash flow in fiscal year 2025, representing cash available after capex. This represents an increase of 10.1% from the prior year.
LATAM Airlines Group S.A. held $2.2B in cash against $8.1B in long-term debt as of fiscal year 2025.
Not reported for fiscal year 2025.
Margins & Returns
LATAM Airlines Group S.A.'s gross margin was 29.2% in fiscal year 2025, indicating the percentage of revenue retained after direct costs. This is up 3.7 percentage points from the prior year.
LATAM Airlines Group S.A.'s operating margin was 16.4% in fiscal year 2025, reflecting core business profitability. This is up 4.4 percentage points from the prior year.
LATAM Airlines Group S.A.'s net profit margin was 10.2% in fiscal year 2025, showing the share of revenue converted to profit. This is up 2.6 percentage points from the prior year.
LATAM Airlines Group S.A.'s ROE was 108.5% in fiscal year 2025, measuring profit generated per dollar of shareholder equity. This is down 26.6 percentage points from the prior year.
Capital Allocation
LATAM Airlines Group S.A. invested $1.8B in capex in fiscal year 2025, funding long-term assets and infrastructure. This represents an increase of 34.0% from the prior year.
Not reported for fiscal year 2025.
Not reported for fiscal year 2025.
LTM Income Statement
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.
| Metric | FY2520-F | FY2420-F | FY2320-F | FY2220-F | FY2120-F | FY2020-F | FY1920-F | FY1820-F | FY1720-F | FY1620-F | FY1520-F |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $14.3B+11.2% | $12.8B+10.2% | $11.6B+24.3% | $9.4B+91.7% | $4.9B+24.5% | $3.9B-61.0% | $10.1B+1.8% | $9.9B+2.9% | $9.6B+7.0% | $9.0B-7.7% | $9.7B |
| Cost of Revenue | $10.1B+5.6% | $9.6B+8.5% | $8.8B+8.8% | $8.1B+63.3% | $5.0B+10.0% | $4.5B-43.2% | $8.0B+2.3% | $7.8B+6.8% | $7.3B+4.5% | $7.0B-8.8% | $7.6B |
| Gross Profit | $4.2B+27.3% | $3.3B+15.7% | $2.8B+124.3% | $1.3Bn/m | -$79.5Mn/m | -$589.6M-127.8% | $2.1B-0.2% | $2.1B-9.1% | $2.3B+15.5% | $2.0B-3.9% | $2.1B |
| Operating Income | $2.3B+51.6% | $1.5B+42.9% | $1.1B-11.0% | $1.2Bn/m | -$3.4Bn/m | -$4.5B-701.5% | $753.1M-19.9% | $940.5M+9.1% | $861.7M+74.7% | $493.3M+10.0% | $448.5M |
| Interest Expense | $721.4M-18.2% | $882.0M+26.3% | $698.2M-25.9% | $942.4M+17.0% | $805.5M+37.2% | $587.0M-0.5% | $589.9M+9.4% | $539.1M-6.9% | $579.2M+39.1% | $416.3M+0.7% | $413.4M |
| Income Tax | $155.1M+840.4% | $16.5M+10.4% | $14.9M+67.6% | $8.9M-98.4% | $568.9Mn/m | -$550.2Mn/m | -$53.7M-172.7% | $73.9M-53.5% | $159.0M-2.6% | $163.2Mn/m | -$178.4M |
| Net Income | $1.5B+49.4% | $977.0M+67.9% | $581.8M-56.6% | $1.3Bn/m | -$4.6Bn/m | -$4.5B-2487.2% | $190.4M-38.5% | $309.8M+184.5% | $108.9M+57.3% | $69.2Mn/m | -$219.3M |
| EPS (Basic) | $0.00+56.3% | $0.00+60.0% | $0.00 | $0.01 | -$7.66n/m | -$7.50-2487.4% | $0.31-38.5% | $0.51+184.5% | $0.18+41.8% | $0.13n/m | -$0.40 |
| EPS (Diluted) | $0.00+56.3% | $0.00+60.0% | $0.00 | $0.01 | -$7.66n/m | -$7.50-2487.4% | $0.31-38.5% | $0.51+184.5% | $0.18+41.8% | $0.13n/m | -$0.40 |
Not reported in any period shown, so not listed: R&D Expenses, SG&A Expenses, EBITDA, Diluted Shares (Avg).
LTM Balance Sheet
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.
| Metric | FY2520-F | FY2420-F | FY2320-F | FY2220-F | FY2120-F | FY2020-F | FY1920-F | FY1820-F | FY1720-F | FY1620-F | FY1520-F |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Total Assets | $17.6B+15.7% | $15.3B+4.0% | $14.7B+11.0% | $13.2B-0.6% | $13.3B-15.1% | $15.7B-25.8% | $21.1B+5.0% | $20.1B-7.4% | $21.7B+12.9% | $19.2B | N/A |
| Current Assets | $4.4B+12.4% | $3.9B-7.2% | $4.2B+18.9% | $3.5B+35.3% | $2.6B-16.8% | $3.1B-21.8% | $4.0B+22.7% | $3.3B-12.8% | $3.8B+3.6% | $3.6B | N/A |
| Cash & Equivalents | $2.2B+9.8% | $2.0B+14.2% | $1.7B+40.9% | $1.2B+16.2% | $1.0B-38.3% | $1.7B+58.1% | $1.1B-0.8% | $1.1B-5.3% | $1.1B+20.3% | $949.3M+26.0% | $753.5M |
| Inventory | $458.6M+4.6% | $438.5M-26.0% | $592.9M+24.1% | $477.8M+66.3% | $287.3M-11.2% | $323.6M-8.7% | $354.2M+26.8% | $279.3M+18.0% | $236.7M-1.9% | $241.4M | N/A |
| Accounts Receivable | $1.4B+18.7% | $1.2B-16.0% | $1.4B+37.5% | $1.0B+14.3% | $881.8M+47.1% | $599.4M-51.8% | $1.2B+7.0% | $1.2B-3.4% | $1.2B+8.6% | $1.1B | N/A |
| Goodwill | N/A | N/A | N/A | N/A | N/A | N/A | $2.2B-3.7% | $2.3B-14.2% | $2.7B-1.4% | $2.7B+18.8% | $2.3B |
| Total Liabilities | $16.3B+12.1% | $14.5B+2.2% | $14.2B+8.0% | $13.2B-35.3% | $20.4B+12.5% | $18.1B+0.7% | $18.0B+7.9% | $16.6B-6.1% | $17.7B+18.0% | $15.0B | N/A |
| Current Liabilities | $7.3B+16.0% | $6.3B+10.6% | $5.7B+11.8% | $5.1B-58.7% | $12.3B+64.4% | $7.5B+7.6% | $7.0B+17.3% | $5.9B-4.5% | $6.2B-0.2% | $6.2B | N/A |
| Non-Current Liabilities | $9.0B+9.2% | $8.3B-3.4% | $8.5B+5.6% | $8.1B+0.6% | $8.0B-24.1% | $10.6B-3.6% | $11.0B+2.7% | $10.7B-6.9% | $11.5B+30.9% | $8.8B | N/A |
| Long-Term Debt | $8.1B+13.1% | $7.2B+3.1% | $6.9B+212.9% | $2.2B-25.1% | $3.0B-5.1% | $3.1B-1.6% | $3.2B-45.9% | $5.9B-11.2% | $6.6B-2.8% | $6.8B | N/A |
| Total Equity | $1.3B+86.0% | $723.3M+60.6% | $450.3M+965.1% | $42.3Mn/m | -$7.1Bn/m | -$2.4B-177.8% | $3.1B-6.8% | $3.4B-13.1% | $3.9B-5.6% | $4.1B+39.5% | $2.9B |
| Retained Earnings | $2.2B+89.0% | $1.1B+147.3% | $464.4Mn/m | -$7.5Bn/m | -$8.8Bn/m | -$4.2B-1290.4% | $352.3M+60.9% | $219.0Mn/m | -$41.0M-111.2% | $366.4M | N/A |
Not reported in any period shown, so not listed: Short-Term Investments, Long-Term Investments.
LTM Cash Flow Statement
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.
| Metric | FY2520-F | FY2420-F | FY2320-F | FY2220-F | FY2120-F | FY2020-F | FY1920-F | FY1820-F | FY1720-F | FY1620-F | FY1520-F |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | $3.7B+20.3% | $3.1B+37.2% | $2.3B+2238.5% | $96.8Mn/m | -$174.2Mn/m | -$494.7M-117.5% | $2.8B+36.3% | $2.1B-5.2% | $2.2B+122.9% | $980.9M-41.3% | $1.7B |
| Capital Expenditures | $1.8B+34.0% | $1.3B+66.6% | $795.8M+2.0% | $780.5M+30.7% | $597.1M+84.1% | $324.3M-74.6% | $1.3B+93.2% | $660.7M+63.7% | $403.7M-41.9% | $694.4M-55.8% | $1.6B |
| Free Cash Flow | $2.0B+10.1% | $1.8B+21.3% | $1.5Bn/m | -$683.7Mn/m | -$771.3Mn/m | -$819.0M-152.8% | $1.6B+9.7% | $1.4B-20.8% | $1.8B+522.4% | $286.5M+179.9% | $102.4M |
| Investing Cash Flow | -$1.6Bn/m | -$1.2Bn/m | -$659.5Mn/m | -$749.0Mn/m | -$552.5M-1744.0% | $33.6Mn/m | -$1.4Bn/m | -$358.4Mn/m | -$287.4Mn/m | -$431.8Mn/m | -$1.7B |
| Financing Cash Flow | -$2.0Bn/m | -$1.6Bn/m | -$1.2B-234.5% | $855.0M+679.8% | $109.6M-90.2% | $1.1Bn/m | -$1.3Bn/m | -$1.6Bn/m | -$1.7Bn/m | -$396.3Mn/m | -$128.4M |
| Dividends Paid | $605.2M+246.1% | $174.8Mn/m | $0n/m | $0 | N/A | $571K-99.0% | $55.1M-24.1% | $72.6M+9.0% | $66.6M+61.7% | $41.2M+17.7% | $35.0M |
Not reported in any period shown, so not listed: Depreciation & Amortization, Stock-Based Compensation, Share Buybacks.
LTM Financial Ratios
Margins and returns are percentages; the remaining ratios are unitless multiples. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.
| Metric | FY2520-F | FY2420-F | FY2320-F | FY2220-F | FY2120-F | FY2020-F | FY1920-F | FY1820-F | FY1720-F | FY1620-F | FY1520-F |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 29.2%+3.7pp | 25.5%+1.2pp | 24.3%+10.8pp | 13.5%+15.1pp | -1.6%+13.4pp | -15.0%-36.1pp | 21.0%-0.4pp | 21.4%-2.8pp | 24.3%+1.8pp | 22.5%+0.9pp | 21.6% |
| Operating Margin | 16.4%+4.4pp | 12.0%+2.7pp | 9.3%-3.7pp | 12.9%+83.1pp | -70.1% | -115.5% | 7.5%-2.0pp | 9.5%+0.5pp | 9.0%+3.5pp | 5.5%+0.9pp | 4.6% |
| Net Margin | 10.2%+2.6pp | 7.6%+2.6pp | 5.0%-9.3pp | 14.3%+109.5pp | -95.2% | -115.9% | 1.9%-1.2pp | 3.1%+2.0pp | 1.1%+0.4pp | 0.8%+3.0pp | -2.3% |
| Return on Equity | 108.5%-26.6pp | 135.1%+5.9pp | 129.2%-3038.4pp | 3167.6% | N/A | N/A | 6.1%-3.1pp | 9.2%+6.4pp | 2.8%+1.1pp | 1.7%+9.2pp | -7.5% |
| Return on Assets | 8.3%+1.9pp | 6.4%+2.4pp | 4.0%-6.2pp | 10.1%+45.1pp | -35.0%-5.9pp | -29.0%-29.9pp | 0.9%-0.6pp | 1.5%+1.0pp | 0.5%+0.1pp | 0.4% | N/A |
| Current Ratio | 0.600.0x | 0.62-0.1x | 0.740.0x | 0.69+0.5x | 0.21-0.2x | 0.42-0.2x | 0.580.0x | 0.55-0.1x | 0.600.0x | 0.58 | N/A |
| Debt-to-Equity | 6.01-3.9x | 9.89-5.5x | 15.40-37.0x | 52.43 | N/A | N/A | 1.01-0.7x | 1.750.0x | 1.71+0.1x | 1.66 | N/A |
| Liabilities-to-Equity | 12.12-8.0x | 20.11-11.5x | 31.60-280.2x | 311.75 | N/A | N/A | 5.74+0.8x | 4.95+0.4x | 4.58+0.9x | 3.66 | N/A |
| Asset Turnover | 0.810.0x | 0.840.0x | 0.79+0.1x | 0.71+0.3x | 0.37+0.1x | 0.25-0.2x | 0.480.0x | 0.490.0x | 0.440.0x | 0.47 | N/A |
| FCF Margin | 13.8%-0.1pp | 13.9%+1.3pp | 12.6%+19.9pp | -7.3%+8.5pp | -15.8%+5.1pp | -20.9%-36.3pp | 15.4%+1.1pp | 14.3%-4.3pp | 18.6%+15.4pp | 3.2%+2.1pp | 1.1% |
Reported as filed but not readable as a share of revenue in the periods where the ratio runs further from zero than a revenue base allows; no change figure is given where either compared period is one of those: Operating Margin, Net Margin.
Note: The current ratio is below 1.0 (0.60), indicating current liabilities exceed current assets, which may suggest potential short-term liquidity concerns.
Similar Companies
Newest fiscal year on record for each company. The health score is the peer-relative Financial Health Score for that year; a dash means no score is published for it.
| Company | Fiscal year | Revenue | Net income | Net margin | Market cap | Health score |
|---|---|---|---|---|---|---|
| LATAM Airlines Group S.A. LTM | FY2025 | $14.3B | $1.5B | 10.2% | $13.3B | 46/100 |
| Southwest Airlines Co. LUV | FY2025 | $28.1B | $441.0M | 1.6% | $20.4B | 33/100 |
| Ryanair Holdings plc RYAAY | FY2025 | $15.1B | $1.7B | 11.6% | $27.2B | 59/100 |
| United Airlines Holdings, Inc. UAL | FY2025 | $59.1B | $3.4B | 5.7% | $31.8B | 41/100 |
| Delta Air Lines, Inc. DAL | FY2025 | $63.4B | $5.0B | 7.9% | $50.5B | 47/100 |
| American Airlines Group Inc. AAL | FY2025 | $54.6B | $111.0M | 0.2% | $8.0B | 27/100 |
Where LATAM Airlines Group S.A. Ranks
Frequently Asked Questions
What is LATAM Airlines Group S.A.'s annual revenue?
LATAM Airlines Group S.A. (LTM) reported $14.3B in total revenue for fiscal year 2025. This represents a 11.2% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.
How fast is LATAM Airlines Group S.A.'s revenue growing?
LATAM Airlines Group S.A. (LTM) revenue grew by 11.2% year-over-year, from $12.8B to $14.3B in fiscal year 2025.
Is LATAM Airlines Group S.A. profitable?
Yes, LATAM Airlines Group S.A. (LTM) reported a net income of $1.5B in fiscal year 2025, with a net profit margin of 10.2%.
How much debt does LATAM Airlines Group S.A. have?
As of fiscal year 2025, LATAM Airlines Group S.A. (LTM) had $2.2B in cash and equivalents against $8.1B in long-term debt.
What is LATAM Airlines Group S.A.'s gross margin?
LATAM Airlines Group S.A. (LTM) had a gross margin of 29.2% in fiscal year 2025, indicating the percentage of revenue retained after direct costs of goods sold.
What is LATAM Airlines Group S.A.'s operating margin?
LATAM Airlines Group S.A. (LTM) had an operating margin of 16.4% in fiscal year 2025, reflecting the profitability of core business operations before interest and taxes.
What is LATAM Airlines Group S.A.'s net profit margin?
LATAM Airlines Group S.A. (LTM) had a net profit margin of 10.2% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.
What is LATAM Airlines Group S.A.'s return on equity (ROE)?
LATAM Airlines Group S.A. (LTM) has a return on equity of 108.5% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.
What is LATAM Airlines Group S.A.'s free cash flow?
LATAM Airlines Group S.A. (LTM) generated $2.0B in free cash flow during fiscal year 2025. This represents a 10.1% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.
What is LATAM Airlines Group S.A.'s operating cash flow?
LATAM Airlines Group S.A. (LTM) generated $3.7B in operating cash flow during fiscal year 2025, representing cash generated from core business activities.
What are LATAM Airlines Group S.A.'s total assets?
LATAM Airlines Group S.A. (LTM) had $17.6B in total assets as of fiscal year 2025, including both current and long-term assets.
What are LATAM Airlines Group S.A.'s capital expenditures?
LATAM Airlines Group S.A. (LTM) invested $1.8B in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.
What is LATAM Airlines Group S.A.'s current ratio?
LATAM Airlines Group S.A. (LTM) had a current ratio of 0.60 as of fiscal year 2025, which is below 1.0, which may suggest potential liquidity concerns.
What is LATAM Airlines Group S.A.'s debt-to-equity ratio?
LATAM Airlines Group S.A. (LTM) had a debt-to-equity ratio of 6.01 as of fiscal year 2025. We compute it as long-term debt divided by total shareholder equity, where long-term debt is the noncurrent part of the company's borrowings, so debt due within the next twelve months is not counted.
What is LATAM Airlines Group S.A.'s liabilities-to-equity ratio?
LATAM Airlines Group S.A. (LTM) had a liabilities-to-equity ratio of 12.12 as of fiscal year 2025, which is total liabilities divided by total shareholder equity. Total liabilities counts every obligation on the balance sheet (payables, deposits, insurance reserves and deferred taxes as well as borrowings), so this ratio usually runs well above debt-to-equity.
What is LATAM Airlines Group S.A.'s return on assets (ROA)?
LATAM Airlines Group S.A. (LTM) had a return on assets of 8.3% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.
What is LATAM Airlines Group S.A.'s P/E ratio?
LATAM Airlines Group S.A. (LTM) trades at 9.1x earnings, its market capitalization divided by $1.5B net income, FY2025. The market capitalization is $13.3B as of Oct 23, 2026; a multiple compares that price with a filed figure and says nothing about the quality of the business.
What is LATAM Airlines Group S.A.'s price-to-sales ratio?
LATAM Airlines Group S.A. (LTM) trades at 0.9x sales, its market capitalization divided by $14.3B revenue, FY2025. The market capitalization is $13.3B as of Oct 23, 2026; a multiple compares that price with a filed figure and says nothing about the quality of the business.
What is LATAM Airlines Group S.A.'s Altman Z-Score?
LATAM Airlines Group S.A. (LTM) has an Altman Z-Score of 1.71, placing it in the Distress Zone (elevated bankruptcy risk). The Z-Score combines five financial ratios (working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets) to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.
What is LATAM Airlines Group S.A.'s Piotroski F-Score?
LATAM Airlines Group S.A. (LTM) has a Piotroski F-Score of 7 out of 9, indicating strong financial health. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7 to 9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.
Are LATAM Airlines Group S.A.'s earnings high quality?
LATAM Airlines Group S.A. (LTM) has an earnings quality ratio of 2.56x, considered cash-backed (high quality). This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.
Can LATAM Airlines Group S.A. cover its interest payments?
LATAM Airlines Group S.A. (LTM) has an interest coverage ratio of 3.24x, meaning it can adequately cover its interest obligations. This ratio divides operating income by interest expense. Ratios above 5x indicate strong debt-servicing ability, while ratios below 2x suggest the company may face difficulty meeting interest payments if earnings decline. Learn more in our complete guide to financial health indicators.
How financially healthy is LATAM Airlines Group S.A.?
LATAM Airlines Group S.A. (LTM) scores 46 out of 100 on our Financial Health Score, indicating moderate standing within its operating companies peer group. The score is the average of six dimensions (Profitability, Growth, Leverage, Liquidity, Cash Flow, Returns), each ranked as a percentile relative to companies in the same scoring family (banks against banks, REITs against REITs, and so on) rather than across all industries. It rates the quality of the business, not whether the stock is fairly priced, and is not financial advice. Learn more in our complete guide to financial health indicators.