United Airlines Holdings Inc. (NASDAQ:UAL)

Goodwill

The value of goodwill remained constant at US$4,527 million throughout the entire period from 2020 to 2024, indicating no impairment or acquisition activity affecting goodwill.

China route authority

This intangible asset also remained stable at US$1,020 million over the five years, suggesting no changes in regulatory or market conditions impacting this asset.

Airport slots

Airport slots showed a minor increase from US$560 million in 2020 to US$574 million in 2021, maintaining the same value through 2023. There was a slight decrease to US$564 million in 2024, indicating a relatively stable but slightly decreasing value in recent years.

Tradenames and logos

These assets stayed steady at US$593 million across all years, implying no impairment or revaluation.

Alliances

The value assigned to alliances was consistent at US$404 million for the entire period, with no observed changes.

Indefinite-lived intangible assets

These assets showed a marginal increase from US$2,577 million in 2020 to US$2,591 million in 2021 and remained at this level through 2023. A small decline to US$2,581 million occurred in 2024, signifying relative stability with a minor decrease at the end.

Frequent flyer database

The value of the frequent flyer database was constant at US$1,177 million from 2020 to 2024, indicating no impairment or revaluation.

Hubs

This asset remained constant at US$145 million across the period, showing no fluctuations.

Contracts

A significant decrease occurred in contracts from US$120 million in 2021 to US$7 million in 2022, followed by missing data in subsequent years. This steep decline suggests major disposals, expirations, or impairments affecting this asset category.

Other intangibles

The "Other" category remained stable at US$314 million from 2020 to 2022, decreased slightly to US$307 million in 2023, and then declined sharply to US$143 million in 2024. This trend signals accelerated amortization or impairment in this miscellaneous category, especially in the latest year.

Finite-lived intangible assets, gross carrying amount

These assets declined gradually from US$1,756 million in 2020 and 2021 to US$1,643 million in 2022, US$1,629 million in 2023, and further to US$1,465 million in 2024. The steady decrease reflects continued amortization and possible disposals.

Accumulated amortization

Accumulated amortization fluctuated, starting at -US$1,495 million in 2020, increasing to -US$1,544 million in 2021, then decreasing to -US$1,472 million in 2022, back to -US$1,495 million in 2023, and lessening to -US$1,363 million in 2024. These fluctuations suggest varying amortization charges and possible adjustments or impairments over the years.

Finite-lived intangible assets, net

The net value of finite-lived intangible assets showed a consistent decline from US$261 million in 2020 to US$212 million in 2021, US$171 million in 2022, US$134 million in 2023, and US$102 million in 2024, evidencing ongoing amortization and asset write-downs.

Intangibles, net

Total net intangible assets decreased steadily from US$2,838 million in 2020 to US$2,803 million in 2021, US$2,762 million in 2022, US$2,725 million in 2023, and US$2,683 million in 2024. This decline, although gradual, indicates an overall reduction in intangible asset values.

Goodwill and other intangible assets

The aggregate of goodwill and other intangible assets fell from US$7,365 million in 2020 to US$7,330 million in 2021, US$7,289 million in 2022, US$7,252 million in 2023, and US$7,210 million in 2024, reflecting the combined effect of the decline in other intangible assets while goodwill remained unchanged.

Total Assets

The reported total assets increased steadily from US$59,548 million in 2020 to US$74,083 million in 2024, showing a consistent upward trend. Similarly, the adjusted total assets, which likely account for goodwill elimination or other adjustments, also rose from US$55,021 million in 2020 to US$69,556 million in 2024. Both measures reflect asset growth, with the adjusted figures consistently lower than the reported totals, indicating a significant portion of reported assets may consist of goodwill or similar intangible assets.

Stockholders’ Equity

The reported stockholders’ equity exhibited fluctuations but an overall increasing trend from US$5,960 million in 2020 to US$12,675 million in 2024. Notably, it declined between 2020 and 2021 before rebounding from 2022 onward with substantial growth each year. The adjusted stockholders’ equity, removing the effects of goodwill, started much lower at US$1,433 million in 2020 and declined sharply to US$502 million in 2021. However, it showed a strong recovery over the following years, more than quadrupling to US$8,148 million by 2024. The gap between reported and adjusted equity indicates a considerable goodwill component, but the improvement in adjusted equity suggests enhancing underlying net asset value over time.

Overall Insights

The data depicts a company with growing asset bases and improving equity positions both on a reported and goodwill-adjusted basis. Adjusted figures confirm positive underlying trends without the distortion of intangible asset accounting. The equity rebound after 2021 is notable, indicating successful efforts to strengthen financial stability. The steady increase in total assets alongside stronger equity positions suggests an expansion phase supported by asset accumulation and value creation beyond goodwill.

The analysis of the financial trends reveals several notable patterns and changes in the company's performance and financial structure over the five-year period.

Total Asset Turnover

Both the reported and adjusted total asset turnover ratios exhibit a consistent upward trend from 2020 through 2024. The reported ratio increased from 0.26 in 2020 to 0.77 in 2024, while the adjusted ratio also rose steadily from 0.28 to 0.82 during the same period. This improvement suggests an enhanced efficiency in asset utilization, indicating that the company is generating higher sales or revenues per unit of assets over time, especially after adjusting for goodwill.

Financial Leverage

Financial leverage ratios, both reported and adjusted, show a significant decline over the years. Reported financial leverage dropped from a high level of 9.99 in 2020 to a much lower 5.84 by 2024. The adjusted financial leverage demonstrated even greater volatility, peaking dramatically at 126.79 in 2021 before declining to 8.54 in 2024. This decline indicates a substantial reduction in the company’s reliance on debt or other liabilities relative to equity, particularly after adjustments, suggesting improved capitalization and lower financial risk.

Return on Equity (ROE)

Reported ROE shows a dramatic recovery trend, transitioning from deep negative values in 2020 (-118.61%) and 2021 (-39.05%) to positive territory from 2022 onward, reaching a peak of 28.08% in 2023 before a slight reduction to 24.84% in 2024. The adjusted ROE reflects even more extreme negative values early on, with significant improvement post-2021, reaching a high of 54.58% in 2023 before decreasing to 38.65% in 2024. This pattern indicates a turnaround in shareholder returns, with improving profitability and possibly the effect of goodwill adjustments highlighting the operational improvements more sharply.

Return on Assets (ROA)

ROA, both reported and adjusted, follows a similar recovery pattern from negative returns in 2020 (-11.87% reported, -12.85% adjusted) and 2021, shifting to positive values from 2022 onwards. By 2024, reported ROA reaches 4.25%, and adjusted ROA reaches 4.53%. The gradual increase in ROA reflects the company’s improving ability to generate profit relative to its total assets, consistent with the observed improvements in asset turnover and reduced financial leverage.

In summary, the financial data shows a strong trajectory of operational recovery and improved efficiency over the five years, characterized by increasing asset turnover, decreasing financial leverage, and a marked rise in both profitability measures (ROE and ROA). The adjustments for goodwill amplify the volatility in the earlier years but consistently illustrate improved performance from 2022 onward, suggesting enhanced quality of earnings and financial health. The slight decreases in profitability ratios from 2023 to 2024 may warrant monitoring but do not offset the overall positive trend.

The analysis of the financial data reveals several notable trends in the company's asset base and asset efficiency over the five-year period from 2020 to 2024.

Total Assets

Reported total assets showed a steady increase from US$59,548 million in 2020 to US$74,083 million in 2024, representing growth of approximately 24%. Similarly, adjusted total assets, which exclude goodwill, rose from US$55,021 million to US$69,556 million, marking a comparable increase. This upward trend indicates ongoing asset accumulation or capital investments, suggesting expansion or reinvestment activities within the company.

Total Asset Turnover

Reported total asset turnover improved significantly over the period, rising from 0.26 in 2020 to 0.77 in 2024. This reflects an almost threefold enhancement in the efficiency with which the company generated revenue per dollar of asset base. A parallel pattern is seen in the adjusted total asset turnover, which increased from 0.28 to 0.82 during the same timeframe. The adjusted ratio consistently remains slightly higher than the reported ratio, indicating that goodwill adjustment marginally enhances asset efficiency metrics.

Overall Insights

The simultaneous growth in total assets and improvement in asset turnover ratios suggests that the company has effectively leveraged its increasing asset base to generate higher revenue. The substantial rise in asset turnover, especially, highlights efficiency gains that may stem from operational improvements, better asset management, or shifts in business mix. The close alignment between reported and adjusted figures further implies that goodwill does not heavily distort asset utilization measures in this context.

The reported total assets of the company have shown a generally increasing trend over the five-year period. Starting from approximately $59.5 billion at the end of 2020, the assets rose significantly in 2021 to about $68.2 billion. Despite a slight decline in 2022, assets picked up momentum again in 2023 and 2024, reaching approximately $74.1 billion by the end of the most recent reported year.

The adjusted total assets, which presumably exclude goodwill or other intangible assets, follow a similar but slightly lower trajectory. These assets increased from around $55.0 billion at the end of 2020 to $63.6 billion in 2021, slightly decreased in 2022, and then rose again to nearly $70.0 billion by the end of 2024. This pattern suggests that while the company’s asset base is growing, the portion attributable to non-adjusted items such as goodwill remains material.

Stockholders’ equity on a reported basis experienced some volatility but overall demonstrated strong growth. Starting at just under $6.0 billion in 2020, equity decreased to about $5.0 billion in 2021 before rebounding to $6.9 billion in 2022. Thereafter, it increased consistently, reaching $9.3 billion and $12.7 billion in 2023 and 2024 respectively. This steady increase in recent years points to enhanced retained earnings or successful capital raising activities.

The adjusted stockholders’ equity presents a different picture, showing considerably lower values overall and more volatility. Beginning at $1.4 billion in 2020, it dropped sharply to $0.5 billion in 2021, followed by a slow recovery to $2.4 billion in 2022. Thereafter, a stronger upward trend is observed with values near $4.8 billion and $8.1 billion in 2023 and 2024. This indicates that after excluding goodwill or intangible assets, the net equity position is more modest but improving significantly.

Financial leverage as reported reveals a declining trend. In 2020, the ratio was approximately 9.99, increasing sharply to 13.56 in 2021, indicative of increased borrowing or reduced equity. However, this ratio decreased markedly in the subsequent years, dropping to 9.77 in 2022 and further to 5.84 by 2024. This suggests improved capital structure and reduced reliance on debt relative to equity over this time frame.

The adjusted financial leverage shows much higher values and greater volatility compared to the reported ratio. Beginning at 38.4 in 2020, it surged dramatically to 126.79 in 2021, reflecting a highly leveraged position after adjustment. The ratio then declined steeply to 26.52 in 2022, continuing down to 8.54 by 2024. Despite the extreme fluctuations, this trend mirrors the reported leverage reduction and implies considerable deleveraging when goodwill adjustments are accounted for.

In summary, the company’s total assets have generally increased over the period with adjustments for goodwill leading to somewhat lower but parallel trends. Stockholders’ equity exhibits clearer growth on a reported basis, while adjusted equity is more volatile but improves substantially in recent years. Financial leverage ratios have decreased significantly, indicating an improving debt-to-equity stance, particularly when adjusted figures are considered, reflecting strengthening financial stability and a less leveraged capital structure.

Stockholders' Equity

The reported stockholders' equity displayed an initial decline from 5,960 million USD in 2020 to 5,029 million USD in 2021. Subsequently, it demonstrated a consistent upward trend, increasing to 6,896 million USD in 2022, 9,324 million USD in 2023, and reaching 12,675 million USD by 2024.

The adjusted stockholders' equity, which accounts for goodwill adjustments, revealed a more pronounced decrease from 1,433 million USD in 2020 to 502 million USD in 2021. However, it then exhibited notable growth over the following years: 2,369 million USD in 2022, 4,797 million USD in 2023, and 8,148 million USD in 2024. The pattern suggests a recovery and strengthening of equity once goodwill adjustments are considered.

Return on Equity (ROE)

The reported ROE was significantly negative in 2020 and 2021, at -118.61% and -39.05% respectively, indicating substantial losses relative to equity during these years. In 2022, the company turned profitable with a positive ROE of 10.69%, which then climbed further to 28.08% in 2023. A slight decline occurred in 2024 with ROE at 24.84%, though it remained robust and positive.

The adjusted ROE, removing the effects of goodwill, showed even more extreme negative values in the first two years, at -493.3% in 2020 and -391.24% in 2021, reflecting severe losses relative to adjusted equity during this period. From 2022 onwards, it improved dramatically, reaching 31.11%, then substantially increasing to 54.58% in 2023. In 2024, it decreased to 38.65%, which, while lower than the previous year, still represents strong profitability in terms of adjusted equity.

Summary of Trends

The data highlights a recovery trajectory following difficult financial performance in 2020 and 2021, as evidenced by negative ROE figures and declining adjusted equity. Both reported and adjusted stockholders' equity values increased markedly starting in 2022, signaling strengthening financial health. Profitability, as measured by both reported and adjusted ROE, improved significantly from 2022 onwards, attaining solid positive levels, with a minor reduction in 2024 but still maintaining strong returns. The adjusted data, which removes goodwill impacts, suggests even greater improvements in underlying equity returns once intangible asset effects are excluded.

Total Assets

The reported total assets show a consistent upward trend from 59,548 million US dollars in 2020 to 74,083 million in 2024. There was a notable increase from 2020 to 2021, followed by a slight decline in 2022 before resuming growth in subsequent years. The adjusted total assets, which remove the impact of goodwill, follow a similar pattern but at lower absolute values, increasing from 55,021 million in 2020 to 69,556 million in 2024. This indicates that goodwill constitutes a significant amount of total assets but does not substantially distort the growth trend in asset base over the period.

Return on Assets (ROA)

Both reported and adjusted ROA demonstrate a marked improvement during the five-year span. Initially, the company faced negative returns, with reported ROA at -11.87% and adjusted ROA at -12.85% in 2020. The negative returns diminished substantially by 2021, nearly reaching break-even levels. From 2022 onwards, the ROA turned positive with reported ROA rising steadily from 1.09% to 4.25% by 2024, and adjusted ROA mirroring this trend from 1.17% to 4.53%. This progression suggests an improving efficiency in generating profits from assets, with adjustments for goodwill slightly moderating both the magnitude and changes but not altering the overall positive trend.

Overall Insights

The data reflects a recovery and strengthening financial performance over the analyzed period. Asset growth is consistent, particularly after recovering from the minor dip in 2022, while profitability as measured by ROA significantly improves from substantial negative figures to solid positive returns. The adjustment for goodwill reduces the reported asset base and ROA figures marginally but does not change the underlying upward momentum in asset utilization and profitability.