Return on Capital (ROC)
Return on capital (ROC) is after tax rate of return on net business assets. ROIC is unaffected by changes in interest rates or company debt and equity structure. It measures business productivity performance.
Return on Invested Capital (ROIC)
United Airlines Holdings Inc., ROIC calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net operating profit after taxes (NOPAT)1 | 2,665) | (847) | (7,072) | 4,800) | 3,991) | |
| Invested capital2 | 40,501) | 50,865) | 45,358) | 37,538) | 40,642) | |
| Performance Ratio | ||||||
| ROIC3 | 6.58% | -1.67% | -15.59% | 12.79% | 9.82% | |
| Benchmarks | ||||||
| ROIC, Competitors4 | ||||||
| FedEx Corp. | 7.54% | 11.15% | 4.40% | 2.29% | 9.75% | |
| Uber Technologies Inc. | -55.79% | -5.09% | -31.45% | -40.29% | — | |
| Union Pacific Corp. | 13.87% | 13.09% | 11.40% | 12.88% | — | |
| United Parcel Service Inc. | 28.42% | 34.07% | 3.42% | 14.07% | — | |
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 NOPAT. See details »
2 Invested capital. See details »
3 2022 Calculation
ROIC = 100 × NOPAT ÷ Invested capital
= 100 × 2,665 ÷ 40,501 = 6.58%
4 Click competitor name to see calculations.
| Performance ratio | Description | The company |
|---|---|---|
| ROIC | A measure of the periodic, after tax, cash-on-cash yield earned in the business. | United Airlines Holdings Inc. ROIC improved from 2020 to 2021 and from 2021 to 2022. |
Decomposition of ROIC
United Airlines Holdings Inc., decomposition of ROIC
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 Operating profit margin (OPM). See calculations »
2 Turnover of capital (TO). See calculations »
3 Effective cash tax rate (CTR). See calculations »
Operating Profit Margin (OPM)
United Airlines Holdings Inc., OPM calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net operating profit after taxes (NOPAT)1 | 2,665) | (847) | (7,072) | 4,800) | 3,991) | |
| Add: Cash operating taxes2 | 352) | 374) | 246) | 192) | 313) | |
| Net operating profit before taxes (NOPBT) | 3,017) | (474) | (6,827) | 4,992) | 4,304) | |
| Operating revenue | 44,955) | 24,634) | 15,355) | 43,259) | 41,303) | |
| Add: Increase (decrease) in frequent flyer deferred revenue | 393) | 307) | 699) | 271) | 222) | |
| Adjusted operating revenue | 45,348) | 24,941) | 16,054) | 43,530) | 41,525) | |
| Profitability Ratio | ||||||
| OPM3 | 6.65% | -1.90% | -42.52% | 11.47% | 10.36% | |
| Benchmarks | ||||||
| OPM, Competitors4 | ||||||
| FedEx Corp. | 6.41% | 9.60% | 4.03% | 2.35% | 8.39% | |
| Uber Technologies Inc. | -27.42% | -2.86% | -57.75% | -56.69% | — | |
| Union Pacific Corp. | 41.70% | 44.40% | 41.95% | 40.84% | — | |
| United Parcel Service Inc. | 15.59% | 17.83% | 3.14% | 8.61% | — | |
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 NOPAT. See details »
2 Cash operating taxes. See details »
3 2022 Calculation
OPM = 100 × NOPBT ÷ Adjusted operating revenue
= 100 × 3,017 ÷ 45,348 = 6.65%
4 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| OPM | The operating profit margin (OPM) is the ratio of pretax economic earnings, or NOPBT, to sales. | United Airlines Holdings Inc. OPM improved from 2020 to 2021 and from 2021 to 2022. |
Turnover of Capital (TO)
United Airlines Holdings Inc., TO calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Operating revenue | 44,955) | 24,634) | 15,355) | 43,259) | 41,303) | |
| Add: Increase (decrease) in frequent flyer deferred revenue | 393) | 307) | 699) | 271) | 222) | |
| Adjusted operating revenue | 45,348) | 24,941) | 16,054) | 43,530) | 41,525) | |
| Invested capital1 | 40,501) | 50,865) | 45,358) | 37,538) | 40,642) | |
| Efficiency Ratio | ||||||
| TO2 | 1.12 | 0.49 | 0.35 | 1.16 | 1.02 | |
| Benchmarks | ||||||
| TO, Competitors3 | ||||||
| FedEx Corp. | 1.41 | 1.31 | 1.20 | 1.31 | 1.22 | |
| Uber Technologies Inc. | 1.95 | 1.09 | 0.53 | 0.69 | — | |
| Union Pacific Corp. | 0.42 | 0.37 | 0.33 | 0.38 | — | |
| United Parcel Service Inc. | 2.24 | 2.19 | 2.55 | 2.04 | — | |
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 Invested capital. See details »
2 2022 Calculation
TO = Adjusted operating revenue ÷ Invested capital
= 45,348 ÷ 40,501 = 1.12
3 Click competitor name to see calculations.
| Efficiency ratio | Description | The company |
|---|---|---|
| TO | The turnover of capital (TO) is the ratio of sales to invested capital. Capital turnover is a function of the efficiency of working capital management and of net fixed assets. | United Airlines Holdings Inc. TO improved from 2020 to 2021 and from 2021 to 2022. |
Effective Cash Tax Rate (CTR)
United Airlines Holdings Inc., CTR calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net operating profit after taxes (NOPAT)1 | 2,665) | (847) | (7,072) | 4,800) | 3,991) | |
| Add: Cash operating taxes2 | 352) | 374) | 246) | 192) | 313) | |
| Net operating profit before taxes (NOPBT) | 3,017) | (474) | (6,827) | 4,992) | 4,304) | |
| Tax Rate | ||||||
| CTR3 | 11.66% | — | — | 3.85% | 7.27% | |
| Benchmarks | ||||||
| CTR, Competitors4 | ||||||
| FedEx Corp. | 16.39% | 11.08% | 9.29% | 25.81% | 4.95% | |
| Uber Technologies Inc. | — | — | — | — | — | |
| Union Pacific Corp. | 20.10% | 21.23% | 18.83% | 16.88% | — | |
| United Parcel Service Inc. | 18.63% | 12.80% | 57.24% | 19.83% | — | |
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 NOPAT. See details »
2 Cash operating taxes. See details »
3 2022 Calculation
CTR = 100 × Cash operating taxes ÷ NOPBT
= 100 × 352 ÷ 3,017 = 11.66%
4 Click competitor name to see calculations.