Is the business good?
How good a business is LTM?
LATAM Airlines Group S.A. earns 26% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
26%
Return on invested capital · cost of capital 9.0% · 17 points above what the capital costs: growth creates value
- Operating margin
- 16%
Operating margin · Airlines median 6.3% · fiscal year to FY2025
- Cash conversion
- 1.34×
Cash conversion · 1.82× a year ago · every dollar of reported profit arrived as cash, and more
- Share count, year on year
- −2.5%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2020 | −115% |
| FY2021 | −70% |
| FY2022 | 13% |
| FY2023 | 9.3% |
| FY2024 | 12% |
| FY2025 | 16% |
Details›
- Gross marginfiscal year to FY2025
- 29%
- Operating marginfiscal year to FY2025
- 16%
- Net marginfiscal year to FY2025
- 10%
- Free cash flow margin
- 14%
- Revenue, trailing twelve months
- $14.3B
- Free cash flow, trailing twelve months
- $1.96B
- Net income, trailing twelve months
- $1.46B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 26%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.