Analysis of Income Taxes
- Income Tax Expense (Benefit)
- Effective Income Tax Rate (EITR)
- Components of Deferred Tax Assets and Liabilities
- Deferred Tax Assets and Liabilities, Classification
- Adjustments to Financial Statements: Removal of Deferred Taxes
- Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)
- Adjusted Net Profit Margin
- Adjusted Total Asset Turnover
- Adjusted Financial Leverage
- Adjusted Return on Equity (ROE)
- Adjusted Return on Assets (ROA)
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- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Solvency Ratios
- Analysis of Long-term (Investment) Activity Ratios
- Common Stock Valuation Ratios
- Enterprise Value (EV)
- Enterprise Value to FCFF (EV/FCFF)
- Total Asset Turnover since 2005
- Price to Earnings (P/E) since 2005
- Price to Operating Profit (P/OP) since 2005
- Price to Sales (P/S) since 2005
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Income Tax Expense (Benefit)
United Airlines Holdings Inc., income tax expense (benefit), continuing operations
US$ in millions
| 12 months ended: | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current | |||||||||||
| Deferred | |||||||||||
| Income tax expense (benefit) |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
The annual current and deferred income tax expenses exhibit notable fluctuations over the five-year period analyzed.
- Current Income Tax Expense
- The current income tax expense begins at a negative value of -12 million USD in 2020, indicating a tax benefit or refund during that year. This benefit slightly decreases to -10 million USD in 2021. In 2022, there is a reversal to a positive current tax expense of 5 million USD, which further increases to 13 million USD in 2023. By 2024, the current income tax expense significantly rises to 84 million USD, demonstrating a marked increase in tax liabilities in the most recent year.
- Deferred Income Tax Expense
- The deferred income tax shows a much larger magnitude and fluctuation compared to the current tax expense. In 2020, the deferred tax expense was a substantial benefit of -1741 million USD, which diminishes considerably to -583 million USD in 2021. Starting in 2022, the deferred tax shifts to a positive expense of 248 million USD, increasing further to 756 million USD in 2023 and reaching 935 million USD in 2024. This indicates a gradual reversal from deferred tax benefits to deferred tax expenses over the period.
- Total Income Tax Expense (Benefit)
- The total income tax expense, which aggregates current and deferred taxes, follows the same trend as the individual components. Initially, it reflects a significant tax benefit of -1753 million USD in 2020, easing to a -593 million USD benefit in 2021. Thereafter, the total income tax turns positive with expenses of 253 million USD in 2022, 769 million USD in 2023, and peaks at 1019 million USD in 2024. This progression illustrates a transition from a tax benefit position to incurring substantial tax expenses over the analyzed timeframe.
Overall, the data reveals a consistent movement from tax benefits, largely driven by deferred tax benefits, towards increasing tax expenses both current and deferred in the later years. The sharp decline in deferred tax benefits and their conversion into expenses is the dominant factor influencing the total tax expense trend.
Effective Income Tax Rate (EITR)
United Airlines Holdings Inc., effective income tax rate (EITR) reconciliation
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Statutory federal income tax rate | ||||||
| Effective income tax rate |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
- Statutory Federal Income Tax Rate
- The statutory federal income tax rate remained constant at 21% throughout the entire five-year period. This indicates there were no changes in the legislated tax rate affecting the company over these years.
- Effective Income Tax Rate
- The effective income tax rate exhibited variability over the years, fluctuating between 19.87% and 25.56%. In 2020, it was below the statutory rate at 19.87%, suggesting the company benefited from tax credits, deductions, or other tax planning strategies during that year. However, in 2021 and 2022, the effective rate increased to 23.19% and peaked at 25.56%, respectively, surpassing the statutory rate, which may reflect changes in the company's income composition or limited tax benefits. In the subsequent years, the rate decreased to 22.7% in 2023 but rose again to 24.45% in 2024, indicating continued fluctuations potentially driven by operational or financial factors influencing taxable income.
Components of Deferred Tax Assets and Liabilities
United Airlines Holdings Inc., components of deferred tax assets and liabilities
US$ in millions
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
- Net Operating Loss (NOL) Carryforwards
- The net operating loss carryforwards show fluctuations over the observed periods, peaking at 2,932 million US dollars in 2022 before declining to 2,149 million US dollars in 2024. This indicates a variable utilization or adjustment in loss carryforwards, with a general downward trend in the latter years.
- Deferred Revenue
- Deferred revenue increased significantly from 1,409 million US dollars in 2020 to 2,349 million US dollars in 2021, then decreased to 1,783 million in 2022 before stabilizing around 1,865 million US dollars in 2024. This pattern suggests a sharp rise in customer prepayments or advance receipts in 2021, followed by a normalization period.
- Employee Benefits Including Pension, Postretirement, and Medical
- There was a consistent decline in employee benefits liability from 1,103 million US dollars in 2020 to 606 million US dollars in 2022, followed by a slight increase and then another decrease, settling at 608 million US dollars in 2024. This decline could reflect changes in benefit plan valuations or employee headcount adjustments.
- Operating Lease Liabilities
- Operating lease liabilities remained relatively stable, fluctuating narrowly between 1,247 million US dollars in 2020 and 1,110 million US dollars in 2024. The slight decrease over time may indicate lease terminations or renegotiations without significant new lease commitments.
- Other Financing Liabilities
- Other financing liabilities exhibit volatility, with a low of 141 million US dollars in 2022 escalating sharply to 517 million US dollars in 2024. This suggests varying obligations under other financing arrangements, potentially due to new financing activities or reclassification of liabilities.
- Interest Expense Carryforward
- Interest expense carryforwards appear only from 2022 onward, starting at 510 million US dollars with some fluctuations thereafter, ending at 467 million US dollars in 2024. This reflects the recognition or tracking of interest-related tax assets beginning in 2022.
- Other
- The category labeled "Other" demonstrates a general increase from 362 million US dollars in 2020 to around 575 million US dollars in 2023, followed by a slight decrease to 565 million in 2024, suggesting miscellaneous items increasing in influence over time.
- Deferred Tax Assets
- Deferred tax assets steadily increased from 6,857 million US dollars in 2020, reaching a peak around 7,886 million US dollars in 2023 before tapering off to 7,281 million US dollars in 2024, indicating an overall growth in tax-related assets with some moderation in the most recent year.
- Valuation Allowance
- The valuation allowance decreased in magnitude from -247 million US dollars in 2020 to -179 million US dollars in 2023 before slightly increasing again to -208 million US dollars in 2024. This suggests adjustments in the estimation of realizable deferred tax assets reflecting evolving expectations about recoverability.
- Deferred Tax Assets Less Valuation Allowance
- The net deferred tax asset, after accounting for valuation allowance, shows growth from 6,610 million US dollars in 2020 to a high of 7,707 million US dollars in 2023, then a decrease to 7,073 million US dollars in 2024. The trend mirrors that of deferred tax assets, emphasizing strong tax asset positions with some recent contractions.
- Depreciation
- Depreciation charges increased continuously across the periods from -4,789 million US dollars in 2020 to -7,171 million US dollars in 2024, reflecting rising asset base or accelerated depreciation methods over time.
- Operating Lease Right-of-Use Asset
- The right-of-use asset related to operating leases decreased from -1,028 million US dollars in 2020 to a low of -863 million US dollars in 2024, indicating a gradual decline in lease asset balances, possibly linked to lease expirations or disposal of leased assets.
- Intangibles
- Intangible assets show a slight but consistent decrease in carrying value from -662 million US dollars in 2020 to -619 million US dollars in 2024, which may reflect amortization or impairment over the reported periods.
- Deferred Tax Liabilities
- Deferred tax liabilities increased steadily from -6,479 million US dollars in 2020 to -8,653 million US dollars in 2024, indicating growth in taxable temporary differences.
- Net Deferred Income Tax Asset (Liability)
- The net deferred income tax asset turned from a positive 131 million US dollars in 2020 to a substantial deficit of -1,580 million US dollars in 2024. This inversion signals a shift from a net deferred tax asset position to a net deferred tax liability position, which may reflect changes in tax positions or timing differences between assets and liabilities.
Deferred Tax Assets and Liabilities, Classification
United Airlines Holdings Inc., deferred tax assets and liabilities, classification
US$ in millions
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Deferred tax assets | ||||||
| Deferred tax liabilities |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
The analysis of the deferred tax assets and liabilities over the five-year period reveals notable fluctuations and a shift in the company's tax position.
- Deferred Tax Assets
- The value of deferred tax assets exhibited significant volatility. It initially stood at 131 million US dollars at the end of 2020, increased markedly to 659 million in 2021, and then decreased sharply to 91 million in 2022. There are no reported values for 2023 and 2024, indicating either the elimination, reclassification, or an absence of deferred tax assets in these years.
- Deferred Tax Liabilities
- Deferred tax liabilities data is absent for the years 2020 through 2022. However, starting in 2023, there was a substantial recorded amount of 594 million US dollars, which further increased significantly to 1,580 million in 2024. This trend suggests a growing tax obligation or deferred tax expense emerging in the latter years of the observation period.
The contrasting trends between deferred tax assets and liabilities over the years indicate a shift from a net deferred tax asset position towards accumulating deferred tax liabilities as of the latest years. This evolution could be reflective of changes in the company's tax planning strategies, profitability outlook, or timing differences in recognizing revenues and expenses for tax purposes. The absence of data in certain years for deferred tax liabilities and the missing deferred tax assets values in the final years underscore potential accounting transitions or reporting changes that would warrant further investigation.
Adjustments to Financial Statements: Removal of Deferred Taxes
United Airlines Holdings Inc., adjustments to financial statements
US$ in millions
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
- Total Assets
- Total assets, both reported and adjusted, display an overall increasing trend from 2020 through 2024. Beginning at approximately 59.5 billion US dollars in 2020, total assets rose steadily to reach about 74.1 billion US dollars by 2024. The adjusted figures closely mirror the reported ones, indicating minor adjustments without materially affecting the overall asset growth pattern.
- Total Liabilities
- Total liabilities exhibit some fluctuations over the observed periods. Reported liabilities increased substantially from around 53.6 billion US dollars in 2020 to a peak near 63.1 billion in 2021, followed by a decline and stabilization around 61.4 billion by 2024. Adjusted liabilities also followed a similar pattern but show a more pronounced decline in the last two years, decreasing to about 59.8 billion by 2024, which is notably lower than the reported figures, suggesting effective adjustments reducing recognized liabilities.
- Stockholders’ Equity
- Stockholders’ equity shows marked improvement over the period. Reported equity decreased from nearly 6 billion US dollars in 2020 to about 5 billion in 2021, then increased significantly to reach approximately 12.7 billion by 2024. Adjusted equity follows a similar trajectory but starts lower at around 5.8 billion in 2020 and grows more substantially, reaching roughly 14.3 billion in 2024, consistently higher than the reported amounts in the later years, indicating that adjustments positively impact equity value.
- Net Income (Loss)
- Reported net income reflects a recovery from significant losses toward profitability. In 2020, the company reported a considerable loss close to -7.1 billion US dollars, improving to a smaller loss in 2021, then turning positive in 2022 and continuing to increase through 2024, reaching about 3.1 billion. Adjusted net income consistently shows larger negative values in the loss years and higher gains in profit years compared to reported figures, with the lowest loss near -8.8 billion in 2020 and highest profit reaching around 4.1 billion in 2024. This adjustment suggests a more conservative approach in earlier years and a more optimistic profit picture in recent periods when adjustments are considered.
- Overall Insights
- The data reveals a company in recovery and growth over the five-year period. Asset accumulation is consistent, with decreasing liabilities in adjusted terms indicating an improving financial structure. Equity growth is strong, particularly when considering deferred tax adjustments, reflecting enhanced value for shareholders. Net income improvement from heavy losses to solid profits indicates operational or market conditions have notably improved. Adjustments related to income taxes have a material effect, generally amplifying losses in downturn years and profits in growth years, underscoring the importance of deferred tax considerations in the company's financial performance evaluation.
United Airlines Holdings Inc., Financial Data: Reported vs. Adjusted
Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)
United Airlines Holdings Inc., adjusted financial ratios
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
The analysis of the financial ratios over the five-year period reveals significant improvement and evolving financial performance trends.
- Net Profit Margin
- Both reported and adjusted net profit margins show a notable upward trend from 2020 through 2024. Initially, the company experienced substantial negative margins in 2020 and 2021, reflecting considerable losses, with reported margins at -46.04% and -7.97%, respectively, and adjusted margins even lower. From 2022 onwards, profitability turned positive, improving steadily to a reported margin of 5.52% and an adjusted margin of 7.16% by 2024, indicating enhanced operational profitability and effective cost management or revenue growth.
- Total Asset Turnover
- Both reported and adjusted total asset turnover ratios improved significantly from 0.26 in 2020 to approximately 0.77 in 2024. This more than doubling indicates better asset utilization over time, reflecting increased efficiency in using assets to generate revenue. The consistency between reported and adjusted figures suggests stability in asset performance and measurement.
- Financial Leverage
- Financial leverage ratios decreased markedly throughout the period. Reported leverage dropped from a very high 9.99 in 2020 to 5.84 in 2024, while adjusted leverage showed an even steeper decline from 10.19 to 5.20. The reduction indicates the company has been lowering its reliance on debt relative to equity, thus possibly reducing financial risk and interest burden. The decrease also suggests deleveraging efforts or improved equity base.
- Return on Equity (ROE)
- The reported ROE, initially deeply negative at -118.61% in 2020 and -39.05% in 2021, improved significantly over the period to positive values reaching 24.84% in 2024. Adjusted ROE followed the same trajectory with even more pronounced changes, moving from -151.14% to 28.65%. This trend reflects the company’s turnaround from substantial losses to strong returns on shareholders' equity, driven by rising profitability and reduced financial leverage.
- Return on Assets (ROA)
- ROA ratios, both reported and adjusted, also improved from negative territory (-11.87% reported and -14.83% adjusted in 2020) to positive and increasing returns reaching 4.25% and 5.51%, respectively, in 2024. This indicates enhanced effectiveness in generating profits from total assets, which complements the improvements seen in asset turnover and net margins.
Overall, the data illustrates a transformation from heavy losses and high financial risk towards profitability, improved operational efficiency, and reduced leverage. The consistency between reported and adjusted data confirms the robustness of these trends, highlighting successful management strategies during the period.
United Airlines Holdings Inc., Financial Ratios: Reported vs. Adjusted
Adjusted Net Profit Margin
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
2024 Calculations
1 Net profit margin = 100 × Net income (loss) ÷ Operating revenue
= 100 × ÷ =
2 Adjusted net profit margin = 100 × Adjusted net income (loss) ÷ Operating revenue
= 100 × ÷ =
- Net Income Trends
- The reported net income shows a significant improvement from a loss of US$ -7,069 million in 2020 to a positive income of US$ 3,149 million in 2024. Similarly, the adjusted net income follows this upward trajectory, moving from a larger loss of US$ -8,810 million in 2020 to a profit of US$ 4,084 million in 2024. This reflects a strong recovery and enhanced profitability over the five-year period.
- Net Income Margin Trends
- Reported net profit margin improves substantially from a negative margin of -46.04% in 2020 to a positive 5.52% in 2024, indicating a shift from considerable losses relative to revenue to sustainable profit levels. The adjusted net profit margin also exhibits enhanced profitability, rising from -57.38% in 2020 to 7.16% in 2024, further underscoring net margin recovery after adjusting for tax effects.
- Comparison Between Reported and Adjusted Data
- Adjusted net income and margin consistently show more pronounced negative values in the loss-making years and more substantial positive values in profitable years compared to the reported figures. This suggests that adjustments for deferred or annual income taxes have a material effect on the financial results, amplifying both losses and gains across the periods analyzed.
- Overall Insights
- The data reflects a strong turnaround in financial performance, with both reported and adjusted metrics improving markedly from heavy losses in 2020 and 2021 to consistent profitability and healthy net margins by 2023 and 2024. The improving net profit margins indicate operational and financial stabilization, whereas the adjustments for income taxes reveal underlying tax-related impacts that contribute to a clearer picture of ongoing profitability trends.
Adjusted Total Asset Turnover
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
2024 Calculations
1 Total asset turnover = Operating revenue ÷ Total assets
= ÷ =
2 Adjusted total asset turnover = Operating revenue ÷ Adjusted total assets
= ÷ =
- Total Assets
- Over the five-year period, total assets exhibited a general upward trend. Reported total assets increased steadily from $59,548 million in 2020 to $74,083 million in 2024. Adjusted total assets followed a similar pattern, rising from $59,417 million to $74,083 million over the same period. This progression indicates ongoing growth in the asset base of the company, with adjustments for deferred income tax having minimal impact on total asset valuation.
- Total Asset Turnover
- Total asset turnover demonstrated a significant improvement during the period analyzed. Both reported and adjusted total asset turnover ratios were identical, reflecting consistent adjustments for tax considerations. Starting at a low 0.26 in 2020, the turnover ratio increased markedly to 0.77 by 2024. The most notable increases occurred between 2021 and 2022, when the ratio nearly doubled from 0.36 to 0.67, suggesting enhanced efficiency in asset utilization to generate revenue. Subsequently, moderate increases continued through 2023 and 2024.
- Insights
- The concurrent rise in total assets and asset turnover ratios suggests effective management of assets to drive revenue growth. The substantial jump in turnover between 2021 and 2022 may reflect operational improvements, asset optimization, or revenue recovery. The convergence of reported and adjusted figures indicates minimal distortion from deferred tax effects on these metrics, underscoring the reliability of the operational performance trends observed.
Adjusted Financial Leverage
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
2024 Calculations
1 Financial leverage = Total assets ÷ Stockholders’ equity
= ÷ =
2 Adjusted financial leverage = Adjusted total assets ÷ Adjusted stockholders’ equity
= ÷ =
- Total Assets
- The total assets exhibited a generally upward trend over the examined periods. Reported total assets increased from $59,548 million in 2020 to $74,083 million in 2024, reflecting steady growth. Adjusted total assets followed a similar trajectory, starting at $59,417 million in 2020 and reaching $74,083 million by 2024. The slight difference between reported and adjusted assets diminishes completely by 2023 and 2024, indicating alignment in asset reporting and adjustments in later years.
- Stockholders’ Equity
- Reported stockholders’ equity showed fluctuations within the period. Beginning at $5,960 million in 2020, equity declined to $5,029 million in 2021 before rebounding and increasing to $12,675 million by 2024. Adjusted equity figures reveal a similar pattern but with somewhat lower values in earlier years, starting at $5,829 million in 2020 and falling to $4,370 million in 2021. Subsequently, adjusted equity grew significantly, reaching $14,255 million by 2024. The divergence between reported and adjusted equity is particularly noticeable in 2021 and widens notably by 2024, suggesting that adjustments related to deferred income taxes had a substantial positive impact on equity in later years.
- Financial Leverage
- Financial leverage ratios, reflecting the relationship between total assets and stockholders’ equity, decreased consistently over the observed time frame. Reported financial leverage dropped from 9.99 in 2020 to 5.84 in 2024, indicating a reduction in reliance on debt relative to equity financing. Adjusted financial leverage displayed a similar but more pronounced decline, starting at 10.19 in 2020 and falling to 5.20 in 2024. The higher initial adjusted leverage ratios highlight the effect of deferred income tax adjustments on the company’s capital structure, with adjustments amplifying leverage earlier in the period and then converging with reported figures by 2024.
- Overall Trends and Insights
- The data illustrates a company with expanding asset bases and strengthening equity positions over the five-year period, particularly after 2021, which corresponded with an overall improvement in capital structure, indicated by decreasing financial leverage. The analysis of adjusted figures underscores the significance of deferred income tax impacts, which caused marked differences in equity and leverage especially in the earlier years. By the end of the period, the adjusted and reported figures nearly align in total assets but still show notable differences in equity, indicating ongoing influence of tax adjustments on shareholder equity.
Adjusted Return on Equity (ROE)
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
2024 Calculations
1 ROE = 100 × Net income (loss) ÷ Stockholders’ equity
= 100 × ÷ =
2 Adjusted ROE = 100 × Adjusted net income (loss) ÷ Adjusted stockholders’ equity
= 100 × ÷ =
The financial data reveals a significant transformation in profitability, equity, and return on equity (ROE) over the five-year period analyzed. Both reported and adjusted figures exhibit considerable volatility, particularly in the early years, followed by a steady improvement.
- Net Income (Loss)
- Reported net income displays a severe loss in 2020 (-7069 million USD), narrowing substantially in 2021 (-1964 million USD), and transitions to positive territory from 2022 onwards, reaching 3149 million USD by 2024. Adjusted net income follows a similar trajectory but records larger magnitude losses in the initial years and higher profits in the later years, reflecting the impact of adjustments. The adjustment amplifies losses in 2020 and 2021 and enhances profitability from 2022 onwards, culminating at 4084 million USD in 2024.
- Stockholders' Equity
- Reported stockholders’ equity declines from 5960 million USD in 2020 to a low of 5029 million USD in 2021, before rising steadily to 12675 million USD in 2024. Adjusted stockholders’ equity mirrors this trend but starts lower in 2020 (5829 million USD) and grows more robustly post-2021, reaching 14255 million USD by 2024. This suggests capitalization and value retention improved after 2021, with adjustments further enhancing equity figures.
- Return on Equity (ROE)
- Reported ROE is deeply negative in the first two years (-118.61% in 2020 and -39.05% in 2021), turning positive at 10.69% in 2022 and increasing to a peak of 28.08% in 2023 before a slight decline to 24.84% in 2024. The adjusted ROE exhibits an even more pronounced negative spike initially (-151.14% in 2020 and -58.28% in 2021) but surpasses the reported ROE during the recovery phase, reaching a high of 34.02% in 2023 and maintaining a strong 28.65% in 2024. These patterns indicate that adjusted results highlight a more dramatic initial financial deterioration followed by a stronger recovery and enhanced profitability efficiency.
Overall, the data illustrates a company recovering from substantial losses and capital erosion in 2020 and 2021, then consistently improving both earnings and equity. Adjusted figures emphasize the severity of early setbacks and the robustness of subsequent recovery more distinctly than reported figures. The improvement of ROE from deeply negative to solidly positive levels further supports this narrative of enhanced operational and financial performance over the period.
Adjusted Return on Assets (ROA)
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
2024 Calculations
1 ROA = 100 × Net income (loss) ÷ Total assets
= 100 × ÷ =
2 Adjusted ROA = 100 × Adjusted net income (loss) ÷ Adjusted total assets
= 100 × ÷ =
- Income Trends
- The reported net income (loss) shows a significant recovery from a substantial loss of $7,069 million in 2020 to positive earnings of $3,149 million by 2024. Similarly, the adjusted net income (loss) follows this positive trend, moving from a larger loss of $8,810 million in 2020 to a gain of $4,084 million in 2024. The transition from losses to profits indicates improving operational and financial performance over the period analyzed.
- Total Assets
- Reported total assets increased steadily from $59,548 million in 2020 to $74,083 million in 2024, reflecting continuous asset growth. Adjusted total assets mirror this pattern closely, indicating a consistent underlying asset base when adjustments for income tax effects are considered. This growth in assets suggests expansion or capital investment initiatives during the period.
- Return on Assets (ROA)
- The reported ROA values start negative at -11.87% in 2020 and progressively improve to 4.25% in 2024. Similarly, the adjusted ROA moves from -14.83% to 5.51% over the same timeline. The adjusted ROA consistently exceeds the reported ROA, indicating that tax adjustments enhance the perceived efficiency in asset utilization. The upward trend in both ROA metrics highlights improving profitability relative to the asset base.
- Overall Insights
- The data reflects a strong recovery trajectory from heavy losses in 2020 through to profitable years in 2023 and 2024. Asset growth throughout the period supports this positive earnings and profitability trend. The adjustments for deferred income taxes have a noticeable impact on net income and return on assets, providing a more favorable view of financial performance. The improvements in both net income and ROA suggest effective management strategies in building profitability and optimizing the use of assets over time.