United Airlines Holdings Inc. (NASDAQ:UAL)

The reported values for goodwill and intangible assets demonstrate relative stability in several key areas over the five-year period. Goodwill remained constant at US$4,527 million from 2021 through 2025. Certain indefinite-lived intangible assets, specifically China route authority, tradenames and logos, and alliances, also exhibited no change during the initial four years, with only airport slots showing a minor decrease in 2024 and 2025.

Goodwill

Goodwill remained consistently valued at US$4,527 million throughout the observed period, indicating no impairment charges were recognized or acquisitions occurred that significantly altered the goodwill balance.

Indefinite-Lived Intangible Assets

The aggregate value of indefinite-lived intangible assets remained largely stable at US$2,591 million from 2021 to 2023. A slight decrease to US$2,581 million and then holding steady at that value through 2025 was observed, primarily attributable to a reduction in the value of airport slots. The other components – China route authority, tradenames and logos, and alliances – remained unchanged.

Finite-Lived Intangible Assets

A consistent downward trend is apparent in finite-lived intangible assets, both gross and net. The gross carrying amount decreased from US$1,756 million in 2021 to US$1,465 million in 2024 and remained at that level through 2025. Accumulated amortization increased steadily from -US$1,544 million to -US$1,391 million, contributing to the decline in net finite-lived intangible assets. Net finite-lived intangible assets decreased from US$212 million in 2021 to US$74 million in 2025.

Specific Intangible Asset Movements

The value of 'Contracts' decreased significantly from US$120 million in 2021 to US$7 million in 2022 and was not reported for 2023-2025. The 'Other' intangible asset category also decreased, from US$314 million in 2021 and 2022 to US$307 million in 2023, and then more substantially to US$143 million in 2024 and 2025. Frequent flyer database and Hubs values remained constant throughout the period.

Overall, the company’s goodwill balance remained unchanged, while the net value of finite-lived intangible assets experienced a consistent decline due to amortization. The changes in 'Contracts' and 'Other' intangible assets warrant further investigation to understand the underlying reasons for these reductions.

Total Intangible Assets

The combined value of goodwill and other intangible assets decreased gradually from US$7,330 million in 2021 to US$7,182 million in 2025, reflecting the net decrease in finite-lived intangible assets and the minor reduction in indefinite-lived intangible assets.

The information presents a comparison of reported and adjusted financial figures for total assets and stockholders’ equity over a five-year period. The adjustments appear to relate to the removal of goodwill and associated intangible assets, as evidenced by the differences between the reported and adjusted values. A consistent reduction in total assets is observed when goodwill is removed, and a corresponding, though proportionally larger, reduction is seen in stockholders’ equity.

Total Assets

Reported total assets demonstrate an increasing trend from US$68,175 million in 2021 to US$76,448 million in 2025. However, the adjusted total assets, reflecting the removal of goodwill, show a smaller increase, moving from US$63,648 million to US$71,921 million over the same period. The difference between reported and adjusted assets widens from US$4,527 million in 2021 to US$4,527 million in 2025, indicating a consistent level of goodwill impacting the reported asset base.

Stockholders’ Equity

Reported stockholders’ equity exhibits a substantial growth pattern, rising from US$5,029 million in 2021 to US$15,282 million in 2025. The adjusted stockholders’ equity, however, shows a significantly more moderate increase, progressing from US$502 million in 2021 to US$10,755 million in 2025. The disparity between reported and adjusted equity is particularly pronounced in the earlier years, decreasing from US$4,527 million in 2021 to US$4,527 million in 2025. This suggests that a considerable portion of the initially reported equity was attributable to goodwill, and its removal significantly impacts the equity position.

The proportional impact of the adjustment is greater on stockholders’ equity than on total assets. This implies that the goodwill removed represents a substantial percentage of the reported equity. The increasing trend in both reported and adjusted equity suggests underlying profitability and/or capital raising activities are contributing to growth, even after accounting for the goodwill adjustment. The consistent difference between reported and adjusted figures highlights the ongoing significance of goodwill in the company’s financial presentation.

The financial metrics demonstrate a significant impact from the adjustment for goodwill and intangible assets. Generally, the adjusted ratios exhibit greater volatility and, in some cases, substantially different magnitudes compared to their reported counterparts. A consistent trend across several adjusted ratios is a marked decrease from 2022 to 2025, suggesting a diminishing effect of the adjustment over time.

Total Asset Turnover

Reported total asset turnover increased from 0.36 in 2021 to 0.77 in 2023, holding steady through 2025. The adjusted total asset turnover mirrors this upward trend, beginning at 0.39 in 2021 and reaching 0.82 in 2023, also remaining stable through 2025. The adjustment modestly increases the turnover ratio in each year, indicating that excluding goodwill results in a more efficient use of assets as measured by revenue generation.

Financial Leverage

Reported financial leverage decreased consistently from 13.56 in 2021 to 5.00 in 2025. However, adjusted financial leverage displays a dramatic initial decrease from 126.79 in 2021 to 6.69 in 2025. The substantial difference in 2021 highlights the considerable impact of goodwill on the reported leverage ratio. The convergence of reported and adjusted leverage over the period suggests that the relative importance of goodwill to total assets is declining.

Return on Equity (ROE)

Reported ROE moved from a negative value of -39.05% in 2021 to 21.94% in 2025, demonstrating substantial improvement. The adjusted ROE, however, exhibits far greater fluctuation, starting at -391.24% in 2021, peaking at 54.58% in 2023, and then decreasing to 31.18% in 2025. This indicates that goodwill significantly suppresses ROE when included in the equity calculation, and its removal leads to a more volatile, but potentially overstated, measure of profitability. The decreasing trend in adjusted ROE from 2023 to 2025 parallels the trend in adjusted financial leverage.

Return on Assets (ROA)

Reported ROA improved from -2.88% in 2021 to 4.39% in 2025. The adjusted ROA follows a similar pattern, increasing from -3.09% to 4.66% over the same period. The adjustment results in a slightly lower ROA in 2021 and 2022, but a higher ROA in subsequent years. The relatively small difference between reported and adjusted ROA suggests that goodwill has a less pronounced effect on asset-based profitability compared to equity-based profitability.

In summary, the removal of goodwill and intangible assets substantially alters the financial ratios, particularly financial leverage and ROE. The initial impact is significant, but the differences between reported and adjusted figures diminish over time, suggesting a decreasing relative importance of these assets. The adjusted ratios provide a different perspective on the company’s financial performance, highlighting the influence of goodwill on reported results.

An examination of the financial information reveals trends in both total asset values and associated turnover ratios over a five-year period. Reported total assets experienced a slight decrease between 2021 and 2022, followed by consistent increases through 2025. Adjusted total assets mirrored this pattern, exhibiting similar fluctuations, though the absolute values are consistently lower than those reported.

Reported Total Asset Turnover

The reported total asset turnover ratio demonstrates a significant upward trend. Starting at 0.36 in 2021, the ratio more than doubled to 0.67 in 2022. This growth continued, reaching 0.76 in 2023 and stabilizing at 0.77 for both 2024 and 2025. This suggests increasing efficiency in generating revenue from reported assets.

Adjusted Total Asset Turnover

The adjusted total asset turnover ratio also shows a positive trend, though with slightly higher values than the reported ratio. It increased from 0.39 in 2021 to 0.72 in 2022, then to 0.81 in 2023. Similar to the reported ratio, it plateaued at 0.82 for 2024 and 2025. The consistent difference between the reported and adjusted ratios indicates that the inclusion of goodwill and intangible assets in the reported total assets has a dampening effect on the turnover calculation.

The convergence of both turnover ratios towards the end of the period suggests a potential stabilization in asset utilization efficiency. The consistent increase in both reported and adjusted total assets, coupled with the stabilizing turnover ratios, implies that revenue growth is keeping pace with asset expansion. The higher adjusted turnover ratio consistently suggests that excluding goodwill and intangible assets provides a more optimistic view of asset efficiency.

An examination of the financial information reveals significant trends in both reported and adjusted financial leverage over the five-year period. Reported financial leverage demonstrates a consistent decline, while adjusted financial leverage, though also decreasing, exhibits a substantially different magnitude and starting point.

Reported Financial Leverage

Reported financial leverage decreased steadily from 13.56 in 2021 to 5.00 in 2025. This indicates a strengthening equity position relative to reported total assets over time. The rate of decline decelerated from 2021 to 2022, then maintained a more consistent pace through 2025.

Adjusted Financial Leverage

Adjusted financial leverage began at a very high level of 126.79 in 2021 and decreased substantially each year, reaching 6.69 by 2025. The most dramatic reduction occurred between 2021 and 2022, falling to 26.52. While the decline continued in subsequent years, the magnitude of the decrease lessened. This suggests that the initial adjustments to total assets and stockholders’ equity had the most significant impact on the leverage ratio, with further changes having a comparatively smaller effect.

The disparity between reported and adjusted financial leverage is considerable. The large difference highlights the impact of goodwill and intangible assets on the reported figures. Reported total assets and stockholders’ equity are significantly higher than their adjusted counterparts, indicating a substantial presence of these items. The adjustments made to arrive at the adjusted figures appear to be focused on removing or revaluing these components.

Total Assets Trend

Reported total assets increased from US$68,175 million in 2021 to US$76,448 million in 2025, demonstrating overall growth. Adjusted total assets followed a similar upward trend, rising from US$63,648 million to US$71,921 million, but at a slower rate. This difference reinforces the observation that goodwill and intangible assets contribute to the growth in reported assets.

Stockholders’ Equity Trend

Reported stockholders’ equity experienced substantial growth, increasing from US$5,029 million in 2021 to US$15,282 million in 2025. Adjusted stockholders’ equity also increased, but from a much lower base of US$502 million in 2021 to US$10,755 million in 2025. The significant difference between the two equity figures suggests that a large portion of the reported equity is attributable to items excluded in the adjusted calculation.

In conclusion, while both reported and adjusted financial leverage decreased over the period, the adjusted leverage ratio started at a much higher level and experienced a more pronounced initial decline. This suggests that the company’s financial position, when excluding the impact of goodwill and intangible assets, underwent a more substantial transformation than indicated by the reported figures alone.

Reported stockholders’ equity demonstrates a consistent upward trend over the five-year period, increasing from US$5,029 million in 2021 to US$15,282 million in 2025. However, adjusted stockholders’ equity exhibits a more dramatic increase, starting at US$502 million in 2021 and reaching US$10,755 million in 2025. This suggests a significant difference between reported and adjusted equity values, likely due to the treatment of goodwill and intangible assets.

Reported Return on Equity (ROE)

Reported ROE fluctuates considerably. It begins at -39.05% in 2021, recovers to 10.69% in 2022, and then experiences substantial growth, peaking at 28.08% in 2023. Subsequent years show a moderate decline to 24.84% in 2024 and 21.94% in 2025. This volatility indicates sensitivity to changes in net income relative to reported equity.

Adjusted Return on Equity (ROE)

Adjusted ROE presents a markedly different pattern. It starts at a very low value of -391.24% in 2021, reflecting the low adjusted equity base. A substantial increase is observed in 2022, reaching 31.11%, followed by a peak of 54.58% in 2023. The adjusted ROE then decreases to 38.65% in 2024 and 31.18% in 2025. The magnitude of these changes suggests that adjustments to stockholders’ equity, likely related to goodwill and intangible assets, have a significant impact on profitability metrics.

The divergence between reported and adjusted ROE highlights the importance of considering the impact of goodwill and intangible assets when evaluating the company’s performance. While reported ROE provides a standard measure of profitability, the adjusted ROE offers a potentially more conservative view by accounting for these items. The substantial increase in adjusted equity from 2021 to 2022, and continuing growth thereafter, suggests a re-evaluation or write-down of previously recognized goodwill or intangible assets, which significantly altered the equity base and consequently, the adjusted ROE.

The decreasing trend in both reported and adjusted ROE from 2023 to 2025, despite continued growth in both equity measures, indicates that net income growth may be slowing relative to the expansion of the equity base. Further investigation into the drivers of net income and equity changes is warranted.

The reported and adjusted return on assets (ROA) for the period demonstrate a clear upward trend. While both metrics initially reflect a negative return in 2021, subsequent years show consistent improvement through 2025. The adjusted ROA consistently exceeds the reported ROA across all observed periods, suggesting the impact of goodwill and intangible assets is a relevant factor in overall performance assessment.

Total Assets

Reported total assets experienced a slight decrease from 2021 to 2022, followed by a consistent increase through 2025. Adjusted total assets mirrored this pattern, though the magnitude of the decrease in 2022 was similar, and the subsequent increases were also consistent. The difference between reported and adjusted total assets remained relatively stable over the period, indicating a consistent approach to asset adjustments.

Reported ROA

Reported ROA began at -2.88% in 2021, indicating a net loss relative to total assets. A positive return was achieved in 2022 at 1.09%, and this improved steadily to 4.25% in 2024 and 4.39% in 2025. This represents a substantial recovery and sustained profitability improvement.

Adjusted ROA

Adjusted ROA followed a similar trajectory to the reported ROA, starting at -3.09% in 2021 and increasing to 4.66% by 2025. The adjusted ROA consistently presented a slightly lower value than the reported ROA in each year, suggesting that the adjustments to total assets, likely related to goodwill and intangibles, have a slightly negative impact on the calculated return. However, the trend remains positive and consistent with the reported ROA.

The convergence of the reported and adjusted ROA trends suggests that while the adjustments related to goodwill and intangible assets influence the absolute ROA value, they do not fundamentally alter the overall positive trend in profitability. The consistent increase in both metrics indicates improving operational efficiency and asset utilization over the observed period.