Stock Analysis on Net

United Airlines Holdings Inc. (NASDAQ:UAL)

This company has been moved to the archive! The financial data has not been updated since April 20, 2023.

Analysis of Operating Leases

Microsoft Excel

An operating lease is treated like a rental contract. Neither the leased asset nor the associated liability is reported on the lessee balance sheet, but the rights may be very similar to the rights of an owner. The lessee only records the lease payments as a rental expense in income statement.


Adjustments to Financial Statements for Operating Leases

United Airlines Holdings Inc., adjustments to financial statements

US$ in millions

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Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Adjustment to Total Assets
Total assets (as reported) 67,358 68,175 59,548 52,611 44,792
Add: Operating lease right-of-use asset (before adoption of FASB Topic 842)1 11,545
Total assets (adjusted) 67,358 68,175 59,548 52,611 56,337
Adjustment to Total Debt
Total debt (as reported) 31,413 33,658 27,153 14,818 14,728
Add: Operating lease liability (before adoption of FASB Topic 842)2 11,545
Add: Current maturities of operating leases 561 556 612 686
Add: Long-term obligations under operating leases 4,459 5,152 4,986 4,946
Total debt (adjusted) 36,433 39,366 32,751 20,450 26,273

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

1, 2 Equal to total present value of future operating lease payments.


United Airlines Holdings Inc., Financial Data: Reported vs. Adjusted


Adjusted Financial Ratios for Operating Leases (Summary)

United Airlines Holdings Inc., adjusted financial ratios

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Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Total Asset Turnover1
Reported total asset turnover 0.67 0.36 0.26 0.82 0.92
Adjusted total asset turnover 0.67 0.36 0.26 0.82 0.73
Debt to Equity2
Reported debt to equity 4.56 6.69 4.56 1.29 1.47
Adjusted debt to equity 5.28 7.83 5.50 1.77 2.63
Return on Assets3 (ROA)
Reported ROA 1.09% -2.88% -11.87% 5.72% 4.75%
Adjusted ROA 1.09% -2.88% -11.87% 5.72% 3.78%

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

Financial ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. United Airlines Holdings Inc. adjusted total asset turnover ratio improved from 2020 to 2021 and from 2021 to 2022.
Adjusted debt to equity A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity. United Airlines Holdings Inc. adjusted debt to equity ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level.
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. United Airlines Holdings Inc. adjusted ROA improved from 2020 to 2021 and from 2021 to 2022.

United Airlines Holdings Inc., Financial Ratios: Reported vs. Adjusted


Adjusted Total Asset Turnover

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
As Reported
Selected Financial Data (US$ in millions)
Operating revenue 44,955 24,634 15,355 43,259 41,303
Total assets 67,358 68,175 59,548 52,611 44,792
Activity Ratio
Total asset turnover1 0.67 0.36 0.26 0.82 0.92
Adjusted for Operating Leases
Selected Financial Data (US$ in millions)
Operating revenue 44,955 24,634 15,355 43,259 41,303
Adjusted total assets 67,358 68,175 59,548 52,611 56,337
Activity Ratio
Adjusted total asset turnover2 0.67 0.36 0.26 0.82 0.73

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

2022 Calculations

1 Total asset turnover = Operating revenue ÷ Total assets
= 44,955 ÷ 67,358 = 0.67

2 Adjusted total asset turnover = Operating revenue ÷ Adjusted total assets
= 44,955 ÷ 67,358 = 0.67

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. United Airlines Holdings Inc. adjusted total asset turnover ratio improved from 2020 to 2021 and from 2021 to 2022.

Adjusted Debt to Equity

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
As Reported
Selected Financial Data (US$ in millions)
Total debt 31,413 33,658 27,153 14,818 14,728
Stockholders’ equity 6,896 5,029 5,960 11,531 9,995
Solvency Ratio
Debt to equity1 4.56 6.69 4.56 1.29 1.47
Adjusted for Operating Leases
Selected Financial Data (US$ in millions)
Adjusted total debt 36,433 39,366 32,751 20,450 26,273
Stockholders’ equity 6,896 5,029 5,960 11,531 9,995
Solvency Ratio
Adjusted debt to equity2 5.28 7.83 5.50 1.77 2.63

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

2022 Calculations

1 Debt to equity = Total debt ÷ Stockholders’ equity
= 31,413 ÷ 6,896 = 4.56

2 Adjusted debt to equity = Adjusted total debt ÷ Stockholders’ equity
= 36,433 ÷ 6,896 = 5.28

Solvency ratio Description The company
Adjusted debt-to-equity A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity. United Airlines Holdings Inc. adjusted debt-to-equity ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level.

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
As Reported
Selected Financial Data (US$ in millions)
Net income (loss) 737 (1,964) (7,069) 3,009 2,129
Total assets 67,358 68,175 59,548 52,611 44,792
Profitability Ratio
ROA1 1.09% -2.88% -11.87% 5.72% 4.75%
Adjusted for Operating Leases
Selected Financial Data (US$ in millions)
Net income (loss) 737 (1,964) (7,069) 3,009 2,129
Adjusted total assets 67,358 68,175 59,548 52,611 56,337
Profitability Ratio
Adjusted ROA2 1.09% -2.88% -11.87% 5.72% 3.78%

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

2022 Calculations

1 ROA = 100 × Net income (loss) ÷ Total assets
= 100 × 737 ÷ 67,358 = 1.09%

2 Adjusted ROA = 100 × Net income (loss) ÷ Adjusted total assets
= 100 × 737 ÷ 67,358 = 1.09%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. United Airlines Holdings Inc. adjusted ROA improved from 2020 to 2021 and from 2021 to 2022.